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Goldman Sachs, Harris Interactive And Nielsen//Netratings Launch Fourth Annual Holiday Espending Rep

Improved Site Usability, Better Customer Service and Lower Prices Expected to Drive 2004 Online Holiday Spending

Laptop Battery Rochester, N.Y. and NEW YORK November 8, 2004Goldman, Sachs, & Co., Harris Interactive, and Nielsen//NetRatings today announced their fourth annual alliance for the 2004 Holiday eSpending Report. The eSpending Report, developed jointly by the three companies, is based on a weekly national survey of approximately 1,000 randomly selected online shoppers surveyed by Harris Interactive. The eSpending report offers weekly insight on online shopping and spending by market segment and tracks consumer attitudes and motivations driving online shopping patterns.
The fourth annual proprietary eSpending survey will provide important data points that will allow us to assess online consumer spending levels, drivers of preference, and levels of satisfaction throughout the important holiday season. We expect solid growth during the holiday season, benefiting from the continued secular shift to online shopping; however, we also anticipate increased levels of competition among pure play online commerce companies, brick and mortar companies, and comparison shopping companies following two years of a benign competitive environment said Anthony Noto, Internet and Entertainment analyst at Goldman Sachs.

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Thinkpad Factors Driving the 2004 Shopping Season

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Microsoft Online holiday sales will continue to be a bright spot in retail for 2004, but this years growth will likely decelerate from levels achieved during the 2003 holiday season. Overarching factors drawing shoppers online include increased comfort with online shopping, greater category breadth, improved site usability, better customer service, and competitive prices.

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Laptop Computers Competition for holiday sales dollars will be fierce this year, said Heather Dougherty, senior Retail analyst, Nielsen//NetRatings. Multi-channel retailers will continue pushing consumers to shop across channels through emails touting sales promotions, savings, and features such as in-store pick-up, which will drive shoppers into stores for incremental revenue. Retailers also will seek to drive online sales by encouraging shoppers to ship directly to recipients through reduced cost and free shipping promotions.

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Laptop Computer It will be interesting to see from this coming seasons research whether time and one-stop shopping will be factors related to online shoppers use of the Web, said, Karen Chiarelli, director of Technology Research, Harris Interactive. If results show they are, then online retailers with a variety of retail partners and simple checkout processes will likely have an edge.

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Desktop Computer Categories that could see the most growth this holiday season include:

Notebooks * Toys and games, as larger retailers attempt to capture sales from specialty players.
* Home and garden, as retailers introduce significant functionality to their sites.
* Computers and consumer electronics, as shoppers seek detailed product and price information before purchasing items.
* Brick and mortar retailer/apparel, as shoppers try out products in-store before buying them online.
* Books, music and DVDs, driven by big-name holiday releases and affordable price points.

Lenovo Looking Back at the 2003 Holiday Season

Hard Drive According to the third annual eSpending Report released in January 2004, online shoppers spent a record $18.5 billion online, excluding travel, during the 2003 holiday season, reflecting a 30 percent year-over-year increase in spending. The apparel, toys/video games (hardware and software), consumer electronics, computer hardware and peripherals, and videos/DVDs categories generated the greatest revenue.

Travelstar Online shoppers spent $3.7 billion on apparel, $2.2 billion on toys/video games (hardware and software), and $2 billion on consumer electronics. Consumer hardware and peripherals also attracted attention from online surfers generating revenue of $1.7 billion. Videos/DVDs also had a strong season last year with online shoppers spending $1.6 billion.

Gateway About Goldman Sachs

Laptop Parts Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high net worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.

Software About Harris Interactive

Hard Drives Harris Interactive Inc. (www.harrisinteractive.com), the 15th largest and fastest-growing market research firm in the world, is a Rochester, N.Y.-based global researchcompany that blends premier strategic consulting with innovative and efficient methods of investigation, analysis and application. Known for The Harris Poll and for pioneering Internet-based research methods, Harris Interactive conducts proprietary and public research to help its clients achieve clear, material and enduring results.

Electronics Harris Interactive combines its intellectual capital, databases and technology to advance market leadership through U.S. offices and wholly owned subsidiaries: London-based HI Europe (www.hieurope.com), Paris-based Novatris (www.novatris.com), Tokyo-based Harris Interactive Japan, through newly acquired WirthlinWorldwide (www.wirthlinworldwide.com), a Reston, Virginia-based research and consultancy firm ranked 25th largest in the world, and through an independent global network of affiliate market research companies. EOE M/F/D/V.

Canon To become a member of the Harris Poll OnlineSM and be invited to participate in future online surveys, visit www.harrispollonline.com.

Desktop Pc About Nielsen//NetRatings

Desktop Computers Nielsen//NetRatings is the global standard for Internet audience measurement and analysis and is the industry's premier source for online advertising intelligence with its NetView, AdRelevance, @Plan, WebRF, LemonAd, MegaPanel and SiteCensus services. Covering 70 percent of the world's Internet usage, the Nielsen//NetRatings services offer syndicated Internet and digital media research reports and custom-tailored data to help companies gain valuable insight into their business. For more information, please visit www.nielsen-netratings.com.

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