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Digital Entertainment Industry Leader Kicks Off Auction Site With New Digital Audio Players From --Pound Sterling--1

The new auction will give gamers the challenge of bidding competitively for many items including PC DVD drives, speakers, webcams, communication products, market-leading sound and graphics cards and brand new products, many of which won't yet be available through normal channels. One of the featured products up for auction is Creative Labs' new Digital Audio Player (DAP) Jukebox(TM) digital audio player.

Designed to give online shoppers a buzz from competing with other buyers, the online auction also allows Creative Labs to study buyers' reactions to new product lines and analyse who is buying what and for how much. Ultimately, this helps Creative Labs offer buyers better products and a better service.

FairMarket's dynamic pricing technology enables Creative Labs to make the purchasing of multimedia and gaming technology fun for digital entertainment enthusiasts and gamers. Additionally, the auction site provides consumers with product education by making in-depth product information available.

Best noted for its award-winning Sound Blaster Live!® audio card, Creative Labs was founded with the vision that multimedia would revolutionise the way people interact with their PCs. A great example of this is the new DAP Jukebox, a digital audio player of multi-format compressed music files. Supporting the MP3, WAV and WMA formats, the 6GB hard drive stores over 100 hours of CD-quality audio, all downloadable from the Internet. Creative Labs will be premiering the player on the new auction site and expects bidding to be fierce, as the entry bid is only (pound sterling)1.

As well as providing an e-commerce selling solution, the FairMarket-powered site provides valuable data acquisition opportunities and a platform on which Creative Labs can launch new products and carry out product price research. By studying the most popular auction products, Creative Labs can research prices to maximise demand on products in new categories.

According to Lisa Perez, Internet Business Development Manager of Creative Labs, ``Auctions offer the opportunity to get a great deal on our products, while participating in a competitive, game-like environment. Since so many of our customers are gamers, this seemed a perfect fit. They're also a great way to give our customers an engaging experience on our website, which his a key part of our brand building efforts.''

``Creative Labs has really grasped the potential of FairMarket's dynamic pricing technology with a solution that provides loads of fun for its customers and uses the entertainment aspect to gain really valuable marketing information,'' said Adam Dorrell, marketing director of FairMarket UK. ``It illustrates perfectly that auctions aren't just an effective means of shifting surplus or ageing stock but often, the value to be gained from the insight they give into customer buying habits can outweigh the revenue generated from the auction.''

About Creative Labs

Creative is a global leader in PC entertainment products and expands the power of the personal computer with digital entertainment solutions, comprising desktop products, Internet appliances and Internet applications and services. Founded in 1983, Creative Technology's corporate headquarters are based in Singapore, with its European head office based in the UK. The European operation currently employs over 500 staff. For further information, visit www.europe.creative.com.

About FairMarket

FairMarket, Inc. is the leading provider of outsourced, online, distributed selling solutions, including hosted auction, falling price, and shopping-by-request services. The company helps businesses generate online revenue by expanding e-commerce functionality and strengthening brand recognition. In the U.S., the FairMarket Network(sm) includes the some of the world's leading portals and vendors on the Web with the potential to reach millions of online shoppers. The company has offices in the UK and Australia and is headquartered in Woburn, Mass. Corporate information can be obtained on the Web at www.fairmarket.com, by calling 800-531-7871, or through the investor hotline at 1-877-4IR-FAIM. The UK office can be reached at 0207 203 8424.

This press release contains information about future expectations, plans and prospects of FairMarket, Inc. that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including but not limited to FairMarket's limited operating history; market acceptance of online auction and other e-commerce services; growth of the market for dynamic e-commerce services; the competitive nature of the online markets in which FairMarket operates; currency, regulatory and other risks associated with expansion into international markets; FairMarket's ability to retain existing customers and to obtain new customers; the operation and capacity of FairMarket's network system infrastructure; FairMarket's ability to attract and retain qualified personnel; and the other risks and uncertainties discussed under the heading ``Risk Factors'' in FairMarket's Registration Statement on Form S-1 filed with the Securities and Exchange Commission on March 14, 2000 in connection with FairMarket's initial public offering and the other reports filed by FairMarket from time to time with the Securities and Exchange Commission. FairMarket assumes no obligation to update any of the information included in this press release.

DAP is a trademark and Sound Blaster Live! is a registered trademark of Creative Technology Limited in the US and other countries.

Contact:

     FairMarket, Inc.
     Traci VanHorn
     Traci@fairmarket.com
     781-376-5615
         or
     FairMarket UK Ltd
     Adam Dorrell
     adam.dorrell@fairmarket.com
     0207 203 8254
         or
     Flapjack Communications
     Zoe Harley
     zoe@flapjack.com
     0207 224 4554