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Fingerhut Receives $62.5 Million Equity Investment
New Financing Positions Company for Significant Growth

Minneapolis, MN, March 31, 2004 — Fingerhut Direct Marketing, Inc., a leading direct-to-consumer marketing company, today announced that it has closed a new equity financing totaling $62.5 million. The financing, led by two leading venture capital firms — Bain Capital Ventures and Battery Ventures — also includes a significant equity investment from Tom Petters, chairman and CEO of Petters Group Worldwide, LLC. In addition to the equity investment, the company also received a $100 million permanent accounts receivable facility from Citigroup [NYSE:C].

Fingerhut Direct Marketing is a database direct marketing company selling a broad selection of general merchandise through catalogues and the Internet to millions of consumers nationwide. The company will use the new financing to invest in operational and marketing initiatives to accelerate growth.

As part of today's news, Fingerhut also announced that Brian Smith, president of Fingerhut, has been named President and Chief Executive Officer of the company. Michael Krupka, managing director, Bain Capital Ventures and Ollie Curme, general partner, Battery Ventures will also join the company's Board of Directors.

"Fingerhut has had a long, successful history serving the unique merchandising and financing needs of its broad customer base," said Michael Krupka, managing director, Bain Capital Ventures. "Taken together with the Company's experienced senior management team, we believe the Company has a bright and prosperous future and are looking forward to working with Fingerhut to help the company achieve its full potential."

"Fingerhut is a well respected and trusted brand among consumers and we are pleased to be associated with the company," said Ollie Curme, general partner, Battery Ventures. "By leveraging their proprietary database and the Internet, we believe Fingerhut is uniquely positioned within the market and is poised for significant growth. We are very excited about the investment and look forward to working with the management team as they use this technology to attract new customers and drive revenue."

The financing facility from Citigroup, a leading global financial services company, provides warehouse financing for Fingerhut consumer accounts receivables and a platform for future access to capital markets funding.

"The combined equity and debt financing provides us with the balance sheet strength and solid partnerships we need to support our continued strong growth, and positions us for a bright future," said Brian Smith, president and CEO, Fingerhut Direct Marketing, Inc. "The financing also emphasizes our commitment to the State of Minnesota through job growth and contributions to its economy."

Piper Jaffray & Co. and Cherry Tree Securities, LLC acted as agents for the equity transaction.

About Fingerhut Direct Marketing Inc.
Fingerhut Direct Marketing, Inc. is a direct to the consumer marketing company selling a broad selection of general merchandise. Products are marketed through catalogs and the Internet to millions of consumers nationwide. For more information visit www.fingerhut.com.

About Bain Capital:
Bain Capital Ventures, the venture capital fund of Bain Capital, leverages the institutional advantages and consulting-based approach of Bain Capital to build industry-leading businesses. Focusing on industries such as technology-driven business services, information, software, and healthcare, Boston-based Bain Capital Ventures benefits from the broader resources of Bain Capital, which includes over 160 investment professionals, a network of over 225 portfolio companies, over $17 billion of assets under management, and the knowledge from 20 years of successful venture investing. For more information, visit www.baincapitalventures.com.

About Battery Ventures:
Battery Ventures is a leading venture capital firm focused on investing in technology companies at all stages of growth. With a team of over 25 experienced investment professionals, Battery leverages its people, expertise and capital to actively guide companies to category dominance. The firm has invested in over 160 technology companies worldwide across the communications, software, infrastructure, and media and content industries. From its offices in Wellesley, MA and San Mateo, CA the partnership manages over $1.6 billion in committed capital. The firm's exceptionally strong investment returns have given it one of the best track records in the industry. For more information visit www.battery.com.


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