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CORRECTING and REPLACING United Online Reports First Quarter 2013 Results

  CORRECTING and REPLACING United Online Reports First Quarter 2013 Results

  *Filed an Initial Registration Statement on Form 10 for FTD Companies, Inc.
    as Further Progress Continues Toward Planned Spin Off
  *Consolidated Revenues Increase 2% Year Over Year to $247.4 Million
  *Consolidated Operating Income of $16.0 Million and Consolidated Adjusted
    OIBDA of $33.1 Million
  *FTD Segment Revenues and Segment Adjusted OIBDA Reach Highest Levels Since
    Acquisition in 2008

CORRECTION...by United Online, Inc.

Business Wire

WOODLAND HILLS, Calif. -- May 3, 2013

United Online, Inc. (Nasdaq: UNTD) issued a press release on April 30, 2013
that overstated provision for income taxes as $5,166,000 instead of $3,202,000
for the quarter ended March 31, 2013. As a result, the following financial
information was understated:

  *net income as $8,155,000 instead of $10,119,000 for the quarter ended
    March 31, 2013
  *net income attributable to common stockholders as $7,920,000 instead of
    $9,857,000 for the quarter ended March 31, 2013
  *basic and diluted net income per common share as $0.09 instead of $0.11
    for the quarter ended March 31, 2013

In addition, the following financial information for the quarter ended March
31, 2013 and as of March 31, 2013 and December 31, 2012, as applicable, was
misstated due to the overstatement of provision for income taxes: income
allocated to participating securities; effective income tax rate; income tax
effect of adjusting entries; adjusted net income attributable to common
stockholders; other assets; total assets; accrued liabilities; total
liabilities; stockholders’ equity; total liabilities and stockholders’ equity;
and change in other assets, as well as change in accounts payable and accrued
liabilities, as included in cash flows from operating activities.

The corrected release reads:

               UNITED ONLINE REPORTS FIRST QUARTER 2013 RESULTS

  *Filed an Initial Registration Statement on Form 10 for FTD Companies, Inc.
    as Further Progress Continues Toward Planned Spin Off
  *Consolidated Revenues Increase 2% Year Over Year to $247.4 Million
  *Consolidated Operating Income of $16.0 Million and Consolidated Adjusted
    OIBDA of $33.1 Million
  *FTD Segment Revenues and Segment Adjusted OIBDA Reach Highest Levels Since
    Acquisition in 2008

United Online, Inc. (Nasdaq: UNTD), a leading provider of consumer products
and services over the Internet, today reported financial results for its first
quarter ended March 31, 2013.

“Today, FTD Companies, Inc. filed an initial registration statement on Form 10
with the SEC in connection with United Online’s previously announced plan to
spin off the FTD business,” said Mark R. Goldston, Chairman, President and
Chief Executive Officer. “We continue to be on track to complete FTD’s
tax-free spin off as an independent, publicly-traded company by the end of the
third quarter of 2013.”

“Today, I also am announcing that I will be leaving the company at the
completion of the FTD spin off,” Goldston said. “At that point, our
stockholders will own shares in two publicly-traded companies: FTD Companies
and United Online, with the former consisting of FTD and Interflora and the
latter consisting of what today are the Communications and Content & Media
segments. After more than 14 years as Chairman and CEO of United Online and
its predecessor, NetZero, a raw startup that I joined back in March 1999, we
have built an outstanding company that has generated in excess of $1.6 billion
of adjusted OIBDA since 2002, distributed $359 million in cash dividends to
stockholders and amassed a registered member base exceeding 100 million people
around the world with our portfolio of outstanding brands. Given the very
talented and experienced senior management teams we have at United Online and
FTD Companies and my extreme confidence in the Presidents of the various
business units, I feel that when the tax-free spin off of FTD Companies is
completed, it would be the appropriate time for me to move on and pursue
career opportunities outside of United Online. After the spin off, Rob
Apatoff, the current FTD President, will become President and CEO of FTD
Companies. In connection with the spin off of FTD, the United Online Board of
Directors will conduct a search for a new CEO of United Online.”

“First quarter 2013 consolidated revenues increased 2% year over year and were
near the high end of our guidance range, while adjusted OIBDA was above our
guidance range,” said Neil P. Edwards, Executive Vice President and Chief
Financial Officer.

“FTD segment revenues and segment adjusted OIBDA reached their highest levels
since FTD was acquired by United Online in August 2008. FTD segment revenues
and segment adjusted OIBDA increased 8% and 9%, respectively, compared to the
year-ago period. Consumer orders increased 10% compared to the year-ago
period, including orders from the Flying Flowers and Flowers Direct businesses
acquired in April 2012,” said Goldston.

“In our Content & Media segment, pay accounts declined by 78,000 during the
quarter, our lowest decline in pay accounts since the second quarter of 2010.
The quarterly net decrease in segment pay accounts has now improved for five
consecutive quarters. We have seen a significant increase in the number of
photos, completed profiles and other user-generated content on our Classmates
website, which has resulted in higher levels of user engagement, improved
email response rates, better conversion from free to pay, and an overall
reduction in churn. This improvement in user engagement began during the
second half of 2012 and has continued throughout Q1 2013,” said Goldston.

“In our Communications segment, NetZero 4G mobile broadband accounts grew 28%
from 32,000 at December 31, 2012 to 41,000 at March 31, 2013, and have
provided us with an opportunity to expand the NetZero brand name into a major
growth market,” added Goldston. “The continued operation of the dial-up
business combined with the exciting new growth potential of our NetZero 4G
mobile broadband business present an opportunity for the Communications
segment to pursue a revenue growth strategy for the first time in many years.”

Summary Results for First Quarter Ended March 31, 2013:

The following table summarizes key financial results for the first quarter
ended March 31, 2013:

                                 (in millions, except per share amounts and
                                    percentages)
Financial Highlights                Q1 2013         Q1 2012        % Change
FTD revenues                        $   190.3        $  176.4        8     %
Content & Media revenues                32.8            39.4         (17   %)
Communications revenues                 24.6            26.8         (8    %)
Intersegment eliminations              (0.4   )       (0.4   )     (1    %)
Consolidated revenues               $   247.4       $  242.3       2     %
                                                                     
GAAP operating income               $   16.0         $  21.2         (25   %)
                                                                     
Adjusted OIBDA^(1)                  $   33.1         $  39.1         (15   %)
                                                                     
GAAP net income attributable        $   9.9          $  11.2         (12   %)
to common stockholders
GAAP diluted net income per         $   0.11         $  0.12         (8    %)
common share
                                                                     
Adjusted net income
attributable to common              $   14.9         $  19.1         (22   %)
stockholders^(2)
Adjusted diluted net income         $   0.16         $  0.21         (24   %)
per common share^(2)
                                                                           

  *Consolidated revenues were $247.4 million, a 2% increase compared to the
    year-ago quarter.
  *GAAP operating income was $16.0 million compared to GAAP operating income
    of $21.2 million in the year-ago quarter.
  *Consolidated adjusted OIBDA^(1) was $33.1 million, a decrease of 15%
    versus the year-ago quarter.
  *Interest expense was $3.2 million, a decrease of 8% compared to the
    year-ago quarter.
  *The effective income tax rate was 24%, versus 37% in the year-ago quarter.
  *GAAP diluted net income per common share was $0.11 versus $0.12 in the
    year-ago quarter.
  *Adjusted diluted net income per common share^(2) was $0.16 versus $0.21 in
    the year-ago quarter.

Cash Flows, Balance Sheet and Dividend Highlights:

  *Cash flows from operating activities and free cash flow^(3) for the
    quarter ended March 31, 2013 were $15.1 million and $12.8 million,
    respectively, decreases of 10% and 17%, respectively, compared to the
    year-ago quarter.
  *Cash and cash equivalents at March 31, 2013 were $132.3 million, compared
    to $136.4 million at December 31, 2012.
  *Net debt at March 31, 2013 was $111.8 million, compared to $107.6 million
    at December 31, 2012. The company defines net debt as total debt, net of
    discounts, less cash and cash equivalents.

  *The company paid $9.4 million in cash dividends during the quarter.

  *In April 2013, the company’s Board of Directors declared a quarterly cash
    dividend of $0.10 per share of common stock that is payable on May 31,
    2013 to stockholders of record on May 14, 2013.

Segment Results for First Quarter Ended March 31, 2013:

FTD:

                              (in millions, except percentages and metrics)
Financial Highlights             Q1 2013        Q1 2012        % Change
Products revenues                $  153.2        $  141.4        8         %
Services revenues                  37.1          35.0        6         %
Segment revenues                 $  190.3       $  176.4       8         %
                                                                 
Segment income from              $  26.7         $  24.1         11        %
operations
Segment adjusted OIBDA^(1)       $  27.8         $  25.5         9         %
as a % of segment                   14.6   %        14.4   %
revenues^(1)
                                                                 
Metrics Highlights               Q1 2013         Q1 2012         % Change  
Consumer orders^(4) (in             2,204           1,997        10        %
thousands)
Average order value^(4)          $  61.01        $  62.91        (3        %)
                                                                 
British Pound / U.S.
Dollar exchange rate                1.54            1.58         (3        %)
(average)
                                                                           

  *Segment revenues were $190.3 million, an increase of 8% versus the
    year-ago quarter. Excluding the unfavorable impact of foreign currency
    exchange rates, segment revenues increased 9% versus the year-ago quarter.
  *Segment income from operations was $26.7 million, an increase of 11%
    versus the year-ago quarter.
  *Segment adjusted OIBDA^(1) was $27.8 million, an increase of 9% versus the
    year-ago quarter. Excluding the unfavorable impact of foreign currency
    exchange rates, segment adjusted OIBDA increased 10% versus the year-ago
    quarter.
  *Consumer orders^(4) were 2.2 million, an increase of 10% versus the
    year-ago quarter. Excluding consumer orders from the Flying Flowers and
    Flowers Direct businesses acquired in April 2012, consumer orders
    increased 5% compared to the year-ago quarter.
  *Average order value^(4) (“AOV”) was $61.01, a decrease of 3% compared to
    the year-ago quarter. Excluding the impact of foreign currency exchange
    rates and consumer orders from the Flying Flowers and Flowers Direct
    businesses acquired in April 2012, which have lower AOVs, AOV increased
    slightly compared to the year-ago quarter.

Content & Media:

                              (in millions, except percentages and metrics)
Financial Highlights             Q1 2013        Q1 2012        % Change
Products revenues                $  0.6          $  0.9          (31       %)
Services revenues                   21.2            25.8         (18       %)
Advertising revenues               11.0          12.8        (13       %)
Segment revenues                 $  32.8        $  39.4        (17       %)
                                                                 
Segment income from              $  5.8          $  7.3          (21       %)
operations
Segment adjusted OIBDA^(1)       $  3.7          $  7.9          (53       %)
as a % of segment                   11.3   %        20.0   %
revenues^(1)
                                                                 
Metrics Highlights               Q1 2013         Q1 2012         % Change  
Segment pay accounts^(5)            2,786           3,293        (15       %)
(in thousands)
Net quarterly decline in
segment pay accounts^(5)            (78    )        (191   )     59        %
(in thousands)
Segment active                      11.4            11.3         1         %
accounts^(5) (in millions)
ARPU^(6)                         $  2.48         $  2.54         (2        %)
                                                                 
Euro / U.S. Dollar                  1.32            1.31         (1        %)
Exchange Rate (average)
                                                                           

  *Segment revenues were $32.8 million, a decrease of 17% versus the year-ago
    quarter.

  *Segment income from operations was $5.8 million, compared to $7.3 million
    in the year-ago quarter.
  *Segment adjusted OIBDA was $3.7 million, a decrease of 53% versus the
    year-ago quarter.
  *Segment pay accounts ^ at March 31, 2013 were 2.8 million, a decrease of
    15% versus March 31, 2012.
  *Segment ARPU^(6) was $2.48, a decline of 2% versus the year-ago quarter.

Communications:

                              (in millions, except percentages and metrics)
Financial Highlights             Q1 2013         Q1 2012       % Change
Products revenues                $   1.3          $  0.3         325       %
Services revenues                    17.8            21.1        (15       %)
Advertising revenues                5.5           5.4        3         %
Segment revenues                 $   24.6        $  26.8       (8        %)
                                                                 
                                                                 
Segment income from              $   6.6          $  10.4        (36       %)
operations
Segment adjusted OIBDA^(1)       $   7.1          $  11.0        (35       %)
as a % of segment                    28.8   %        41.1  %
revenues^(1)
                                                                 
Metrics Highlights               Q1 2013          Q1 2012        % Change  
Segment pay accounts^(5)             626             747         (16       %)
(in thousands)
ARPU^(6)                         $   9.21         $  8.99        2         %
                                                                           

  *Segment revenues were $24.6 million, a decrease of 8% versus the year-ago
    quarter.

  *Segment income from operations was $6.6 million, a decrease of 36% versus
    the year-ago quarter.
  *Segment adjusted OIBDA was $7.1 million, a decrease of 35% versus the
    year-ago quarter. The investment in the NetZero 4G mobile broadband
    business resulted in a negative adjusted OIBDA impact of $2.7 million
    during the first quarter of 2013, compared to $2.2 million in the year-ago
    period.
  *Segment pay accounts at March 31, 2013 were 0.6 million, a decrease of 16%
    versus March 31, 2012.

Unallocated Corporate Expenses:

For the quarter ended March 31, 2013, the impact of unallocated corporate
expenses on consolidated adjusted OIBDA was $5.6 million, a 6% increase
compared to the year-ago quarter.

Business Outlook:

The following forward-looking information includes certain of the projections
made by management as of the date of this press release. The company does not
intend to revise or update this information, except as required by law, and
may not provide this type of information in the future. Due to a variety of
factors, actual results may differ significantly from those projected. Factors
include, without limitation, the factors referenced later in this announcement
under the caption “Cautionary Information Regarding Forward-Looking
Statements.” These and other factors are discussed in more detail in the
company’s filings with the Securities and Exchange Commission.

Second Quarter 2013 Guidance:

                                    
Second Quarter 2013 (in millions)    Guidance
Revenues                             $222 - $230
Adjusted OIBDA^(1)                   $27.5 - $32.5
                                        

                                                                  
Second Quarter 2013 Supplemental Information (in millions)         Guidance
Net interest expense                                               $3.1
Shares used to calculate diluted net income per common share       92.6
Shares used to calculate adjusted diluted net income per common    92.8
share^(2)
                                                                      

The table below reconciles the company’s guidance for operating income, a GAAP
measure, to adjusted OIBDA.

                                    
Second Quarter 2013 (in millions)    Guidance
Operating Income                     $8.5 - $13.5
Depreciation                         $6.0
Amortization of intangible assets    $8.2
Stock-based compensation             $3.3
Transaction-related costs            $1.5
Adjusted OIBDA^(1)                   $27.5 - $32.5
                                        

Investor Conference Call on April 30, 2013 at 5:00 pm ET (2:00 pm PT):

The company will host a conference call to discuss the results at 5:00 pm ET
(2:00 pm PT) on Tuesday, April 30, 2013. The conference call dial-in number is
888-401-4668 for U.S. and Canadian participants and 719-325-2491 for
participants outside the U.S. and Canada. The passcode is 6794878.
Alternatively, a live webcast of the conference call, along with a
presentation containing financial highlights for the first quarter ended March
31, 2013, can be accessed within the Investor Relations section of the
company’s website at www.unitedonline.com.

The presentation and a replay of the broadcast will be available on the
company’s website for seven days following the call. A replay of the broadcast
will also be available for seven days following the call by dialing
888-203-1112 (or 719-457-0820 outside of the U.S. and Canada) and the replay
passcode, 6794878.

Non-GAAP Measures:

In evaluating the company’s performance, management uses one or more of the
following measures that are not determined in accordance with accounting
principles generally accepted in the United States of America (“GAAP”):
adjusted OIBDA, adjusted net income, adjusted basic and diluted net income per
common share, and free cash flow. These measures are adjusted to exclude
certain non-cash expenses such as depreciation, amortization, stock-based
compensation, and impairment of goodwill, intangible assets and long-lived
assets. In addition, these measures are adjusted to exclude the items
discussed below because such items are either operating expenses which would
not otherwise have been incurred by the company in the normal course of the
company’s business operations or are not reflective of the company’s core
results over time. These items may include recurring as well as non-recurring
items. These adjustments should not be construed as an inference that all of
these adjustments or costs are unusual, infrequent or non-recurring. For
example, certain restructuring and other exit costs may be considered
recurring given the company’s ongoing efforts to be more cost effective and
efficient, certain litigation or dispute settlement charges or gains may be
viewed as recurring given that the company is continually involved in, and
resolving, litigation, arbitration, investigations, disputes and similar
matters, and certain transaction-related costs may be deemed recurring given
the company's regular evaluation of potential transactions. Notwithstanding
that certain charges, costs or gains may be considered recurring, in order to
provide meaningful comparisons, the company believes that it is appropriate to
adjust for such charges, costs or gains because they are not reflective of the
company's core results and tend to vary based on timing, frequency and
magnitude.

Restructuring and Other Exit Costs — Restructuring and other exit costs
consist primarily of employee termination costs, facility closure and
relocation costs, and contract termination costs.

Litigation or Dispute Settlement Charges or Gains — These charges or gains
include estimated losses for which we have established a reserve, as well as
actual settlements, judgments, fines, penalties, assessments or other
resolutions against, or in favor of, the company related to litigation,
arbitration, investigations, disputes or similar matters. Insurance recoveries
received by the company related to such matters are also included in these
adjustments.

Transaction-Related Costs — The company excludes certain expense items
resulting from actual or potential transactions such as business combinations,
mergers, acquisitions, dispositions, spin offs, financing transactions, and
other strategic transactions, including, without limitation, (i) compensation
expenses and (ii) expenses for advisors and representatives such as investment
bankers, consultants, attorneys, and accounting firms. Transaction-related
costs may also include, without limitation, transition and integration costs
such as retention bonuses and acquisition-related milestone payments to
acquired employees.

Definitions of Non-GAAP Measures:

(1) Adjusted operating income before depreciation and amortization (“adjusted
OIBDA”) is defined by the company as operating income before depreciation;
amortization; stock-based compensation; restructuring and other exit costs;
litigation or dispute settlement charges or gains; transaction-related costs;
and impairment of goodwill, intangible assets and long-lived assets. The
company's definition of adjusted OIBDA has been modified from time to time.
Management believes that because adjusted OIBDA excludes (i) certain non-cash
expenses (such as depreciation, amortization, stock-based compensation, and
impairment of goodwill, intangible assets and long-lived assets) and (ii)
expenses that are not reflective of the company’s core operating results over
time (such as restructuring and other exit costs, litigation or dispute
settlement charges or gains, and transaction-related costs), this measure
provides investors with additional useful information to measure the company's
financial performance, particularly with respect to changes in performance
from period to period. Management uses adjusted OIBDA to measure the company’s
performance. The company’s board of directors has used this measure as a basis
in determining certain compensation incentives for certain members of the
company's management. Adjusted OIBDA is not determined in accordance with GAAP
and should be considered in addition to, not as a substitute for or superior
to, financial measures determined in accordance with GAAP. A limitation
associated with the use of adjusted OIBDA is that it does not reflect the
periodic costs of certain tangible and intangible assets used in generating
revenues in the company's business. Management evaluates the costs of such
tangible and intangible assets through other financial activities such as
evaluations of capital expenditures and purchase accounting. An additional
limitation associated with this measure is that it does not include
stock-based compensation expenses related to the company’s workforce.
Management compensates for this limitation by providing a summary of
stock-based compensation expenses within the accompanying tables and in the
footnotes accompanying its financial statements. A further limitation
associated with the use of this measure is that it does not reflect the costs
of restructuring and other exit costs, litigation or dispute settlement
charges or gains, transaction-related costs, and the impairment of goodwill,
intangible assets and long-lived assets. Management compensates for this
limitation by providing supplemental information about such charges, gains and
costs within its financial press releases and SEC filings, when applicable. An
additional limitation associated with the use of this measure is that the term
“adjusted OIBDA” does not have a standardized meaning. Therefore, other
companies may use the same or a similarly named measure but exclude different
items or use different computations, which may not provide investors a
comparable view of the company’s performance in relation to other companies.
Management compensates for this limitation by presenting the most comparable
GAAP measure, operating income, directly ahead of adjusted OIBDA within its
financial press releases and by providing a reconciliation that shows and
describes the adjustments made. A reconciliation to operating income is
provided in the accompanying tables. In addition, many of the adjustments to
our GAAP financial measures reflect the exclusion of items that are recurring
in nature and will be reflected in our financial results for the foreseeable
future.

Adjusted OIBDA for each of the company's segments is defined by the company as
segment income from operations, as set forth in the company’s Forms 10-K and
Forms 10-Q, before stock-based compensation, restructuring and other exit
costs, litigation or dispute settlement charges or gains, transaction-related
costs and the impairment of goodwill, intangible assets and long-lived assets.
The company’s definition of adjusted OIBDA for each of the company’s segments
has been modified from time to time. Management believes that because segment
adjusted OIBDA and segment adjusted OIBDA as a percentage of segment revenues
exclude (i) certain non-cash expenses (such as stock-based compensation, and
the impairment of goodwill, intangible assets and long-lived assets); and (ii)
expenses that are not reflective of the segment's core operating results over
time (such as restructuring and other exit costs, litigation or dispute
settlement charges or gains, and transaction-related costs), these measures
provide investors with additional useful information to evaluate the company’s
segment financial performance, particularly with respect to changes in
performance from period to period. Segment adjusted OIBDA and segment adjusted
OIBDA as a percentage of segment revenues are not determined in accordance
with GAAP and should be considered in addition to, not as a substitute for or
superior to, financial measures determined in accordance with GAAP. A
limitation associated with these measures is that they do not include
stock-based compensation expenses related to the company’s workforce.
Management compensates for this limitation by providing a summary of
stock-based compensation expenses within the accompanying tables and in the
footnotes accompanying its financial statements. A further limitation
associated with the use of these measures is that they do not reflect the
costs of restructuring and other exit costs, litigation or dispute settlement
charges or gains, transaction-related costs and impairment charges related to
an operating segment. Management compensates for this limitation by providing
supplemental information about such charges, gains and costs by segment within
its financial press releases and SEC filings, when applicable. A
reconciliation to segment income from operations, its most comparable GAAP
measure, is provided in the accompanying tables.

(2) Adjusted net income is defined by the company as net income before the
after-tax effect of: stock-based compensation; amortization of intangible
assets; impairment of goodwill, intangible assets and long-lived assets;
restructuring and other exit costs; litigation or dispute settlement charges
or gains; transaction-related costs; and the re-measurement of certain
deferred tax assets. Adjusted diluted net income per common share includes the
adjustment for shares resulting from the elimination of stock-based
compensation. Management believes that adjusted net income and adjusted
diluted net income per common share provide investors with additional useful
information to measure the company’s financial performance, particularly with
respect to changes in performance from period to period, because these
measures are exclusive of (i) certain non-cash expenses (such as stock-based
compensation, amortization of intangible assets, and the impairment of
goodwill, intangible assets and long-lived assets) and (ii) expenses that are
not reflective of the company’s core results over time (such as restructuring
and other exit costs, litigation or dispute settlement charges or gains, and
transaction-related costs). Management also uses adjusted net income and
adjusted diluted net income per common share for this purpose. Adjusted net
income and adjusted diluted net income per common share are not determined in
accordance with GAAP and should be considered in addition to, not as a
substitute for or superior to, financial measures determined in accordance
with GAAP. The limitations of adjusted net income and adjusted diluted net
income per common share are that, similar to adjusted OIBDA, they do not
include certain costs, and the terms “adjusted net income” and “adjusted
diluted net income per common share” do not have standardized meanings.
Therefore, other companies may use the same or similarly named measures but
exclude different items or use different computations, which may not provide
investors a comparable view of the company’s performance in relation to other
companies. Management compensates for this limitation by presenting the most
comparable GAAP measures, net income and diluted net income per common share,
directly ahead of adjusted net income and adjusted diluted net income per
common share within its financial press releases and by providing a
reconciliation of adjusted net income that shows and describes the adjustments
made. A reconciliation of adjusted net income to net income, its most
comparable GAAP measure, is provided in the accompanying tables.

(3) Free cash flow is defined by the company as net cash provided by operating
activities, less capital expenditures and cash received for litigation or
dispute settlement gains, and plus the excess tax benefits from equity awards,
cash paid for restructuring and other exit costs, cash paid for litigation or
dispute settlement charges, and cash paid for transaction-related costs.
Management believes that free cash flow provides investors with additional
useful information to measure operating liquidity because it reflects the
company’s operating cash flows after investing in capital assets and prior to
cash paid for restructuring and other exit costs, cash paid or received for
litigation or dispute settlement charges or gains, and cash paid for
transaction-related costs. It also fully reflects the tax benefits realized by
the company from stock-based compensation. This measure is used by management,
and may also be useful for investors, to assess the company’s ability to pay
its quarterly dividend, repay debt obligations, generate cash flow for a
variety of strategic opportunities, including reinvestment in the business,
and effect potential acquisitions and share repurchases. Free cash flow is not
determined in accordance with GAAP and should be considered in addition to,
not as a substitute for or superior to, measures determined in accordance with
GAAP. A limitation of free cash flow is that it does not represent the total
increase or decrease in cash during the period. An additional limitation
associated with the use of this measure is that the term “free cash flow” does
not have a standardized meaning. Therefore, other companies may use the same
or a similarly named measure but exclude different items or use different
computations, which may not provide investors a comparable view of the
company’s performance in relation to other companies. Management compensates
for this limitation by presenting the most comparable GAAP measure, net cash
provided by operating activities, directly ahead of free cash flow within its
financial press releases and by providing a reconciliation that shows and
describes the adjustments made. A reconciliation to net cash provided by
operating activities is provided in the accompanying tables.

(4) Consumer orders are orders delivered during the period that originated in
the U.S. and Canada, primarily from the www.ftd.com website and the
1-800-SEND-FTD telephone number, and in the U.K. and the Republic of Ireland,
primarily from the www.interflora.co.uk website and various telephone numbers.
The number of consumer orders is not adjusted for non-delivered orders that
are refunded after the scheduled delivery date. Orders originating with a
florist or other retail location for delivery to consumers are not included.

Average order value represents the average U.S. Dollar amount received for
consumer orders delivered during a period. For orders placed outside the U.S.
(principally in the U.K. and the Republic of Ireland), this average U.S.
Dollar amount is determined after translating the local currency amounts
received into U.S. Dollars. Average order value includes merchandise revenues
and shipping, handling and service fees paid by the consumer, less discounts
and refunds (net of refund-related fees charged to floral network members).

(5) A pay account is defined as a member who has paid for a subscription to a
Content & Media or Communications service, and whose subscription has not
terminated or expired. A subscription provides the member with access to our
service for a specific term (for example, a month or a year) and may be
renewed upon the expiration of each term. One-time purchases of our services
are not considered subscriptions and thus, are not included in the pay
accounts metric. A pay account does not equate to a unique subscriber since
one subscriber could have several pay accounts. In addition, at any point in
time, our pay account base includes a number of accounts receiving a free
period of service as either a promotion or retention tool, such as the
subscribers receiving our free NetZero 4G mobile broadband service, and a
number of accounts that have notified us that they are terminating their
service but whose service remains in effect.

Content & Media segment active accounts are defined as the sum of all pay
accounts as of the date presented; the monthly average for the period of all
free accounts who have visited our domestic or international online nostalgia
websites (excluding schoolFeed and The Names Database) at least once during
the period; and the monthly average for the period of all online loyalty
marketing members who have earned or redeemed points during such period.
Communications segment active accounts include all Communications segment pay
accounts as of the date presented combined with the number of free dial-up
Internet access and email accounts that logged on to our services at least
once during the preceding 31 days.

(6) ARPU is calculated by dividing services revenues generated from the pay
accounts of our Content & Media or Communications segment, as applicable, for
a period (after translation into U.S. Dollars) by the average number of
segment pay accounts for that period, divided by the number of months in that
period.

(7) Our average monthly churn rate is calculated as the total number of pay
accounts that terminated or expired in a period divided by the average number
of pay accounts for that period, divided by the number of months in that
period. Our average monthly churn percentage may fluctuate from period to
period due to our mix of subscription terms, which affects the timing of
subscription expirations, and other factors. We make certain normalizing
adjustments to the calculation of our churn percentage for periods in which we
add a significant number of pay accounts due to acquisitions. For our
Communications segment pay accounts, we do not include in our churn
calculation accounts canceled during the first 30 days of service, other than
dial-up accounts that have upgraded from free accounts. A number of such
accounts nevertheless will be included in our account totals at any given
measurement date. Subscribers who cancel one pay service but subscribe to
another pay service are not necessarily considered to have canceled a pay
account depending on the services and, as such, our segment churn rates are
not necessarily indicative of the percentage of subscribers canceling any
particular service.

About United Online^®:

United Online, Inc. (Nasdaq: UNTD), through its operating subsidiaries, is a
leading provider of consumer products and services over the Internet, where
their respective brands have attracted a large online audience that includes
more than 100 million registered accounts worldwide. The company's FTD segment
provides floral-related products and services (FTD, Interflora, Flying
Flowers, and Flowers Direct) for consumers and retail florists, as well as
other retail locations offering floral and related products and services. The
company's Content & Media segment provides online nostalgia products and
services (Classmates, schoolFeed and StayFriends) and online loyalty marketing
(MyPoints). Its primary Communications segment service is Internet access
(NetZero and Juno), including 4G mobile broadband (NetZero Wireless).

Cautionary Information Regarding Forward-Looking Statements:

This release contains forward-looking statements within the meaning of the
“safe harbor” provisions of the Private Securities Litigation Reform Act of
1995, as amended, based on our current expectations, estimates and projections
about our operations, industry, financial condition, performance, results of
operations, and liquidity. Statements containing words such as “may,”
“believe,” “anticipate,” “expect,” “intend,” “plan,” “project,” “projections,”
“business outlook,” “estimate,” or similar expressions constitute
forward-looking statements. These forward-looking statements include, but are
not limited to, statements about the proposed spin off of the FTD segment;
proposed changes to senior management; future financial performance; revenues;
operating expenses; operating income; capital expenditures; depreciation and
amortization; stock-based compensation; and transaction-related costs.
Potential factors that could cause actual results to differ materially from
those in the forward-looking statements include, among others: the effects of
the proposed spin off or other transactions on our businesses; the effect of
competition; risks associated with the integration or commercialization of new
businesses, products, services, applications or features or the success of new
business models; the severity and duration of current economic conditions; the
company’s inability to maintain or increase the number of free and pay
accounts, visitors to its websites, and members of the floral network; risks
associated with litigation and governmental regulations or investigations,
including reviews of business practices such as marketing, billing, renewal,
and post-transaction sales practices; problems associated with the company’s
operations, systems or technologies; changes in marketing conditions and laws;
the company’s inability to maintain or increase its advertising revenues;
potential write down, reserve against or impairment of assets including
receivables, goodwill, intangible assets or other assets; the company’s
inability to enforce or defend its ownership and use of intellectual property;
financial market risk resulting from fluctuations in foreign currency exchange
rates, particularly the British Pound and Euro; changes in stock-based
compensation due to future equity issuances or other reasons; changes in
amortization or depreciation due to a variety of factors; changes in the
floral industry; the company’s inability to retain key customers, vendors and
personnel; changes in tax laws, the company’s business or other factors that
would impact anticipated tax benefits or the tax treatment of the proposed
spin-off transaction; the impact of, and restrictions associated with, the
company’s indebtedness; as well as the risk factors disclosed in the company’s
filings with the Securities and Exchange Commission (www.sec.gov), including,
without limitation, information under the captions “Management’s Discussion
and Analysis of Financial Condition and Results of Operations” and “Risk
Factors.” Readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect management’s analysis only as the
date hereof. Any such forward-looking statements are not guarantees of future
performance or results and involve risks and uncertainties that may cause
actual performance and results to differ materially from those predicted.
Reported results should not be considered an indication of future performance.
Except as required by law, the company undertakes no obligation to publicly
release the results of any revision to these forward-looking statements that
may be made to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.


UNITED ONLINE, INC.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)

                                                  Quarter Ended March 31,
                                                     2013         2012
Revenues:
Products ^(b)                                        $ 155,087     $ 142,599
Services ^(b)                                         92,297      99,693  
Total revenues                                         247,384       242,292
Operating expenses:
Cost of revenues-products ^(a)                         119,191       109,008
Cost of revenues-services ^(a)                         22,366        22,183
Sales and marketing^(a)                                45,961        46,759
Technology and development^(a)                         12,424        11,586
General and administrative^(a)                         26,562        24,287
Amortization of intangible assets                      7,747         7,309
Acquisition-related contingent consideration           (5,149  )     -
Restructuring and other exit costs                    2,289       (71     )
Total operating expenses                              231,391     221,061 
                                                                   
Operating income                                       15,993        21,231
                                                                   
Interest income                                        153           238
Interest expense                                       (3,192  )     (3,458  )
Other income, net                                     367         204     
                                                                   
Income before income taxes                             13,321        18,215
Provision for income taxes                            3,202       6,712   
Net income                                           $ 10,119     $ 11,503  
Income allocated to participating securities          (262    )    (335    )
Net income attributable to common stockholders       $ 9,857      $ 11,168  
                                                                   
Basic net income per common share                    $ 0.11       $ 0.12    
Shares used to calculate basic net income per         91,579      89,794  
common share
Diluted net income per common share                  $ 0.11       $ 0.12    
Shares used to calculate diluted net income           91,812      89,894  
per common share
                                                                   
Shares outstanding at end of period                   92,085      90,156  
                                                                   
(a) Stock-based compensation was allocated as
follows:
Cost of revenues-products                            $ 10          $ 8
Cost of revenues-services                              41            94
Sales and marketing                                    635           583
Technology and development                             366           498
General and administrative                            1,994       2,271   
Total stock-based compensation                       $ 3,046      $ 3,454   
                                                                             

(b) The company identified an immaterial error related to the elimination of
intercompany revenues within its FTD segment, whereby intercompany revenues
were being eliminated in consolidation from services revenues instead of
products revenues. Reported revenues, both consolidated and for the FTD
segment, were correct in total; however, the error resulted in an
overstatement of products revenues and an understatement of services revenues.
The company has determined to revise, in this earnings release and future
earnings releases, its previously reported products revenues and services
revenues reported in the company’s consolidated statements of operations, as
well as within the company’s segment information.


UNITED ONLINE, INC.
Unaudited Reconciliation of Operating Income to Adjusted OIBDA^(1)
(in thousands)

                                                   Quarter Ended March 31,
                                                      2013         2012
                                                                    
Operating income                                      $  15,993     $ 21,231
Depreciation                                             6,145        6,475
Amortization of intangible assets                       8,860      7,744  
Operating income before depreciation and                 30,998       35,450
amortization
Stock-based compensation                                 3,046        3,454
Restructuring and other exit costs                       2,289        (71    )
Litigation or dispute settlement charges                 195          -
Transaction-related costs                               (3,456 )    298    
Adjusted OIBDA                                        $  33,072    $ 39,131 
                                                                    
UNITED ONLINE, INC.
Unaudited Reconciliation of Segment Income from Operations to Segment Adjusted
OIBDA^(1)
(in thousands)
                                                                    
                                                      Quarter Ended March 31,
                                                      2013          2012
                                                                    
FTD:
Segment income from operations                        $  26,737     $ 24,080
Stock-based compensation                                 896          1,106
Litigation or dispute settlement charges                 195          -
Transaction-related costs                               -          298    
Segment adjusted OIBDA                                $  27,828    $ 25,484 
                                                                    
Content & Media:
Segment income from operations                        $  5,794      $ 7,311
Stock-based compensation                                 768          648
Restructuring and other exit costs                       2,289        (63    )
Transaction-related costs                               (5,128 )    -      
Segment adjusted OIBDA                                $  3,723     $ 7,896  
                                                                    
Communications:
Segment income from operations                        $  6,630      $ 10,365
Stock-based compensation                                 470          648
Restructuring and other exit costs                      -          (8     )
Segment adjusted OIBDA                                $  7,100     $ 11,005 
                                                                    
Unallocated corporate expenses                        $  (5,579 )   $ (5,254 )
                                                                    
Consolidated adjusted OIBDA                           $  33,072    $ 39,131 
                                                                    


UNITED ONLINE, INC.
Unaudited Reconciliation of Net Income to Adjusted Net Income^(2)
(in thousands, except per share amounts)
                                                               
                                                       Quarter Ended March 31,
                                                       2013         2012
                                                                    
Net income                                             $ 10,119     $ 11,503
Income allocated to participating securities            (262   )    (335   )
Net income attributable to common stockholders           9,857        11,168
                                                                    
Adjustments:
Stock-based compensation                                 3,046        3,454
Amortization of intangible assets                        8,860        7,744
Restructuring and other exit costs                       2,289        (71    )
Litigation or dispute settlement charges                 195          -
Transaction-related costs                               (3,456 )    298    
                                                         20,791       22,593
                                                                    
Income tax effect of adjusting entries                  (5,857 )    (3,456 )
Adjusted net income attributable to common             $ 14,934    $ 19,137 
stockholders
                                                                    
GAAP net income per common share:
Basic net income per common share                      $ 0.11      $ 0.12   
Shares used to calculate basic net income per           91,579     89,794 
common share
Diluted net income per common share                    $ 0.11      $ 0.12   
Shares used to calculate diluted net income per         91,812     89,894 
common share
                                                                    
Adjusted net income per common share:
Adjusted basic net income per common share             $ 0.16      $ 0.21   
Shares used to calculate adjusted basic net             91,579     89,794 
income per common share
Adjusted diluted net income per common share           $ 0.16      $ 0.21   
Shares used to calculate adjusted diluted net           92,029     90,101 
income per common share
                                                                             


UNITED ONLINE, INC.
Unaudited Condensed Consolidated Balance Sheets
(in thousands)

                                              March 31,  December 31,
                                                 2013        2012
                                                             
ASSETS
Cash and cash equivalents                        $ 132,268   $   136,444
Accounts receivable, net                           42,248        43,721
Inventories, net                                   12,071        16,116
Deferred tax assets, net                           12,037        12,279
Property and equipment, net                        54,817        57,877
Goodwill and intangible assets, net                647,359       668,479
Other assets                                      25,635       28,503
Total assets                                     $ 926,435   $   963,419
                                                             
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable                                 $ 68,181    $   80,543
Accrued liabilities                                39,706        45,253
Member redemption liability                        21,851        22,575
Deferred revenue                                   50,145        49,581
Debt, net of discounts                             244,092       244,000
Deferred tax liabilities, net                      29,230        31,896
Other liabilities                                 9,327        14,485
Total liabilities                                 462,532      488,333
                                                             
Stockholders' equity                               463,903       475,086
                                                            
Total liabilities and stockholders' equity       $ 926,435   $   963,419
                                                                 


UNITED ONLINE, INC.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
                                                              
                                                     Quarter Ended March 31,
                                                     2013          2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                           $ 10,119      $ 11,503
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, amortization and stock-based             18,051        17,673
compensation
Provision for doubtful accounts receivable             569           729
Acquisition-related contingent consideration           (5,149  )     -
Accretion of discounts and amortization of             188           202
debt issue costs
Deferred taxes and other, net                          (1,992  )     (1,224  )
Tax benefits (shortfalls) from equity awards           206           (274    )
Excess tax benefits from equity awards                 (213    )     (13     )
Change in operating assets and liabilities
(excluding the effects of acquisitions):
Accounts receivable, net                               580           3,077
Inventories, net                                       3,996         (1,614  )
Other assets                                           2,732         6,283
Accounts payable and accrued liabilities               (13,839 )     (18,773 )
Member redemption liability                            (725    )     (501    )
Deferred revenue                                       1,105         (286    )
Other liabilities                                     (481    )    93      
Net cash provided by operating activities             15,147      16,875  
                                                                   
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment                    (5,312  )     (4,212  )
Purchases of rights, content and intellectual          (287    )     (519    )
property
Purchases of investments                               (11     )     (18     )
Proceeds from sales of investments                    56          89      
Net cash used for investing activities                (5,554  )    (4,660  )
                                                                   
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on term loan                                  -             (663    )
Proceeds from exercises of stock options               -             4
Repurchases of common stock                            (3,272  )     (2,082  )
Dividends and dividend equivalents paid on             (9,438  )     (9,250  )
outstanding shares and restricted stock units
Excess tax benefits from equity awards                213         13      
Net cash used for financing activities                (12,497 )    (11,978 )
                                                                   
Effect of foreign currency exchange rate               (1,272  )     1,318
changes on cash and cash equivalents
                                                                   
Change in cash and cash equivalents                    (4,176  )     1,555
Cash and cash equivalents, beginning of period        136,444     136,105 
Cash and cash equivalents, end of period             $ 132,268    $ 137,660 
                                                                             


UNITED ONLINE, INC.
Unaudited Reconciliation of Net Cash Provided by Operating Activities to Free
Cash Flow^(3)
(in thousands)
                                                               
                                                    Quarter Ended March 31,
                                                    2013            2012
Net cash provided by operating activities           $  15,147       $ 16,875
Adjustments:
Capital expenditures                                   (5,312  )      (4,212 )
Excess tax benefits from equity awards                 213            13
Cash paid for restructuring and other exit             1,289          2,570
costs
Cash paid for litigation or dispute                    571            102
settlement charges
Cash paid for transaction-related costs               891          5      
Free cash flow                                      $  12,799      $ 15,353 
                                                                             


UNITED ONLINE, INC.
Unaudited Segment Information
(in thousands)
                                                              
                                                     Quarter Ended March 31,
                                                     2012          2011
FTD
Revenues:
Products ^(a)                                        $ 153,202     $ 141,402
Services ^(a)                                         37,081      35,045  
Total revenues                                         190,283       176,447
                                                                   
Operating expenses:
Cost of revenues                                       122,250       113,255
Sales and marketing                                    30,287        28,739
Technology and development                             3,833         3,706
General and administrative                             9,422         9,182
Amortization of intangible assets                     6,407       6,278   
Total operating expenses                              172,199     161,160 
                                                                   
Operating income                                       18,084        15,287
                                                                   
Depreciation                                           2,246         2,515
Amortization of intangible assets                     6,407       6,278   
Segment income from operations                         26,737        24,080
Stock-based compensation                               896           1,106
Litigation or dispute settlement charges               195           -
Transaction-related costs                             -           298     
Segment adjusted OIBDA                               $ 27,828     $ 25,484  
                                                                   
Content & Media
Revenues:
Products                                             $ 624         $ 900
Services                                               21,161        25,786
Advertising and other                                 11,041      12,759  
Total revenues                                         32,826        39,445
                                                                   
Operating expenses:
Cost of revenues                                       10,499        10,090
Sales and marketing                                    11,390        14,342
Technology and development                             6,081         5,198
General and administrative                             5,891         5,653
Amortization of intangible assets                      1,340         1,031
Acquisition-related contingent consideration           (5,149  )     -
Restructuring and other exit costs                    2,289       (63     )
Total operating expenses                              32,341      36,251  
                                                                   
Operating income                                       485           3,194
                                                                   
Depreciation                                           2,856         2,651
Amortization of intangible assets                     2,453       1,466   
Segment income from operations                         5,794         7,311
Stock-based compensation                               768           648
Restructuring and other exit costs                     2,289         (63     )
Transaction-related costs                             (5,128  )    -       
Segment adjusted OIBDA                               $ 3,723      $ 7,896   
                                                                   
Communications
Revenues:
Products                                             $ 1,261       $ 297
Services                                               17,834        21,068
Advertising                                           5,545       5,395   
Total revenues                                         24,640        26,760
                                                                   
Operating expenses:
Cost of revenues                                       8,890         7,972
Sales and marketing                                    4,567         3,912
Technology and development                             2,510         2,682
General and administrative                             3,028         3,084
Restructuring and other exit costs                    -           (8      )
Total operating expenses                              18,995      17,642  
                                                                   
Operating income                                       5,645         9,118
                                                                   
Depreciation                                          985         1,247   
Segment income from operations                         6,630         10,365
Stock-based compensation                               470           648
Restructuring and other exit costs                    -           (8      )
Segment adjusted OIBDA                               $ 7,100      $ 11,005  
                                                                   
Total segment adjusted OIBDA                         $ 38,651     $ 44,385  
                                                                   
Reconciliation of segment revenues to
consolidated revenues:
FTD                                                  $ 190,283     $ 176,447
Content & Media                                        32,826        39,445
Communications                                         24,640        26,760
Intersegment eliminations                             (365    )    (360    )
Consolidated revenues                                $ 247,384    $ 242,292 
                                                                   
Reconciliation of segment operating expenses
to consolidated operating expenses:
FTD                                                  $ 172,199     $ 161,160
Content & Media                                        32,341        36,251
Communications                                         18,995        17,642
Unallocated corporate expenses                         8,221         6,368
Intersegment eliminations                             (365    )    (360    )
Consolidated operating expenses                      $ 231,391    $ 221,061 
                                                                   
Reconciliation of segment income from
operations to consolidated operating income:
FTD                                                  $ 26,737      $ 24,080
Content & Media                                        5,794         7,311
Communications                                        6,630       10,365  
Total segment income from operations                   39,161        41,756
Depreciation                                           (6,145  )     (6,475  )
Amortization of intangible assets                      (8,860  )     (7,744  )
Unallocated corporate expenses, excluding             (8,163  )    (6,306  )
depreciation
Consolidated operating income                        $ 15,993     $ 21,231  
                                                                   
Reconciliation of segment adjusted OIBDA to
consolidated adjusted OIBDA:
FTD adjusted OIBDA                                   $ 27,828      $ 25,484
Content & Media adjusted OIBDA                         3,723         7,896
Communications adjusted OIBDA                         7,100       11,005  
Total segment adjusted OIBDA                           38,651        44,385
Unallocated corporate expenses                        (5,579  )    (5,254  )
Consolidated adjusted OIBDA                          $ 33,072     $ 39,131  
                                                                             

(a) The company identified an immaterial error related to the elimination of
intercompany revenues within its FTD segment, whereby intercompany revenues
were being eliminated in consolidation from services revenues instead of
products revenues. Reported revenues, both consolidated and for the FTD
segment, were correct in total; however, the error resulted in an
overstatement of products revenues and an understatement of services revenues.
The company has determined to revise, in this earnings release and future
earnings releases, its previously reported products revenues and services
revenues reported in the company’s consolidated statements of operations, as
well as within the company’s segment information.


UNITED ONLINE, INC.
Unaudited Selected Quarterly Historical Key Metrics (a)


                      March 31,     December      September     June 30,      March 31,
                   2013         31,          30,          2012         2012
                                    2012          2012
                                                                              
Consolidated:
Revenues (in          $ 247,384     $ 218,983     $ 177,751     $ 231,857     $ 242,292
thousands)
                                                                              
                                                                              
FTD:
Segment
revenues (in          $ 190,283     $ 153,178     $ 116,362     $ 167,527     $ 176,447
thousands)
% of
consolidated            77      %     70      %     65      %     72      %     73      %
revenues
                                                                              
Consumer
orders^(4) (in          2,204         1,787         1,239         1,997         1,997
thousands)
Average order         $ 61.01       $ 60.13       $ 61.06       $ 60.75       $ 62.91
value^(4)
Average foreign
currency                1.54          1.61          1.58          1.58          1.58
exchange rate:
GBP to USD
                                                                              
Content &
Media:
Segment
revenues (in          $ 32,826      $ 39,509      $ 36,556      $ 37,986      $ 39,445
thousands)
% of
consolidated            13      %     18      %     21      %     16      %     16      %
revenues
                                                                              
Pay
accounts^(5)            2,786         2,864         2,987         3,120         3,293
(in thousands)
Segment                 3.3     %     3.5     %     3.4     %     3.6     %     3.9     %
churn^(7)
ARPU^(6)              $ 2.48        $ 2.52        $ 2.50        $ 2.50        $ 2.54
Segment active
accounts^(5)            11.4          11.5          10.9          10.3          11.3
(in millions)
Currency
exchange rate:          1.32          1.30          1.25          1.28          1.31
EUR to USD
                                                                              
Communications:
Segment
revenues (in          $ 24,640      $ 26,669      $ 25,203      $ 26,810      $ 26,760
thousands)
% of
consolidated            10      %     12      %     14      %     12      %     11      %
revenues
                                                                              
Pay
accounts^(5)
(in thousands):
Access                  404           421           440           467           498
Other                  222         229         235         242         249     
Total
Communications         626         650         675         709         747     
pay accounts
                                                                              
Segment                 3.0     %     2.9     %     3.1     %     3.2     %     3.4     %
churn^(7)
ARPU^(6)              $ 9.21        $ 9.05        $ 8.97        $ 8.97        $ 8.99
Segment active
accounts^(5)            1.3           1.3           1.4           1.4           1.5
(in millions)

(a) More information on the financial results for these quarters can be found in the
company's filings with the Securities and Exchange Commission.


Contact:

United Online, Inc.
Investors:
David Bigelow, 818-287-3560
dbigelow@corp.untd.com
or
Press:
Scott Matulis, 818-287-3388
pr@untd.com