FOR IMMEDIATE RELEASE
June 27, 2001

June 27, 2001, Cleveland, OH -- e2grow, inc. today announced its acquisition of Locality.com, a Mountain View, CA-based internet marketing and community directory provider in national markets such as San Francisco, Portland, Seattle, Oakland, Nashville and Cleveland. This expansion adds another web services vendor to the portfolio of e2grow, which acquired both BuildOhio.com of Cleveland and eTownShops.com of Akron in March, 2001. Today's acquisition, which includes Locality.com's nationwide clients, name, trademarks and hardware/software, will expand e2grow's customer base by 150%.

e2grow also announced that it will adopt the Locality.com brand name later this year, currently scheduled for the third quarter of 2001.

"Locality's investors had many options in terms of who they could sell their assets to," said Dennis Barba, e2grow Chairman and CEO. "Their customer base paralleled ours: small businesses that desired a web presence as well as online marketing in their neighborhoods and communities. Our successful model of community portals, basic e-commerce packages for micro businesses, and our proprietary e-commerce and site building/site maintenance software, when combined with Locality's existing base of customers in NE Ohio, helped sell them on us." Added Barba, "I'm confident we've got the strategic business model that can make their operation profitable. This acquisition takes us to what I feel is a leadership position in the small and micro-business web services sector."

Financial terms of the sale were not disclosed; Locality's investors received cash and equity in e2grow, inc.

Warren Goldenberg of Hahn Loeser + Parks LLP, legal counsel to e2grow, observes that "e2grow has succeeded where large, coastal venture-backed companies have not because it has kept its overhead low, and is thus able to service individual accounts on a basis which is both cost-effective to the customer and profitable to e2grow."

Locality.com, which was founded in 1999, has thousands of small business customers and independent sales reps nationwide, as well as an online national small business directory. These will be added to e2grow's existing customer base, which will be serviced from the company's Cleveland headquarters. "We're excited about leveraging Locality.com's national reach with the positive economic benefits of running a business in Northeast Ohio," Barba commented. "While we've moved overnight from being a local service provider to a national service provider, our significantly lower overhead costs means that we can be a profitable operation quicker than Locality could ever have been in Silicon Valley."

Currently, the NE Ohio communities of Chesterland, Solon, Reminderville, Aurora, Russell, Auburn Township and Bainbridge Township have neighbourhood portals built by e2grow. These feature retail directories of e2grow customer websites, as well as community content such as online coupons, suburban news, school announcements and community events. Founded in 1999, e2grow currently has a staff of 15, but will not be retaining employees of Locality.com.

e2grow offers three primary services for the micro business market:
For Small Businesses: The increasing presence of national, "big-box" retailers means that "local mom-and-pop merchants need to harness the power of the internet to level the playing field," explains Barba, "because they can't compete with the advertising budget or the name recognition of a Wal-Mart or a Starbucks." e2grow's small business (typically under 10 employees) customers receive: