SOURCE: E-centives, Inc.

April 25, 2005 17:30 ET

E-centives Announces New Preferred Equity Funding

Company Significantly Reduces Debt Through Restructuring of Previous Notes

BETHESDA, MD -- (MARKET WIRE) -- April 25, 2005 -- E-centives, Inc. (SWX: ECEN), a leading provider of interactive marketing technologies and services, today announced it has recently reached an agreement with certain of its existing investors for a preferred stock financing which consists of an offering of shares of a newly created series of preferred stock, designated Series C preferred stock.

In connection with this financing, some of the Company's largest investors -- InVenture, Inc., Pine, Inc. and Venturetec, Inc. -- agreed to exchange their previous convertible promissory notes for shares of the newly created Series C preferred stock. Upon this exchange, which became effective on March 31, 2005, the notes have been cancelled and the Company owes no further amounts thereunder. In addition, the Company intends to fund its additional working capital needs through this new preferred equity.

Kamran Amjadi, E-centives' Chairman and CEO, said, "We are very excited about this financing which significantly reduces the Company's debt and corresponding interest expense." Mr. Amjadi added, "This funding results in improvements to the Company's financial position -- both to the balance sheet and P&L -- and also demonstrates the continued financial commitment by the Company's principal stockholder."

"E-centives has shown momentum in many aspects of their business," said Peter Friedli, one of E-centives' Directors and one of its largest investors. "I look forward to seeing the business expand and benefit from the growing interest in the Internet sector."

More details of this financing are available on the Company's latest Annual Report on Form 10-KSB and the Company's current report on Form 8-K filed on April 7, 2005.

About E-centives, Inc.

E-centives, Inc. is a leading provider of interactive marketing technologies and services that enable companies to acquire and retain consumers and promote more profitable relationships with them. Headquartered in Bethesda, MD, just outside Washington, D.C., and with west coast offices in the San Francisco Bay Area, E-centives, Inc. is traded on the SWX Swiss Exchange under the symbol "ECEN."

Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, E-centives cautions investors that any forward-looking statements or projections made by the company, including those that may be made in this press release, are based on management's expectations at the time they are made, but they are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Specifically, E-centives forecasts of revenue growth, customer growth and EBITDA are forward looking in nature, and could differ materially from current expectations. E-centives' future results may be impacted by factors such as technological changes, market acceptance of the company's services, E-centives ability to grow its customer base, and competitive market pressures, among other things. E-centives' future results also may be impacted by other risk factors detailed from time to time in the company's registration statements and Forms 10-K and 10-Q filed with the Securities and Exchange Commission. By making these forward-looking statements, E-centives undertakes no obligation or intention to update these statements after the date of this release.

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