DIYonline.com Announces Contractor Referral Alliance and Joint Marketing Initiatives With Homestore.com

TUCSON, AZ– August 22, 2000 – DIYonline.com, the Internet's premier custom home improvement project design site for Do-It-Yourselfers, announced today that they have entered into a professional contractor referral and co-branding alliance as part of a larger joint marketing initiative with Homestore.com.

The new relationship will allow DIYonline.com to gain widespread exposure to visitors on the Homestore.com family of web sites, providing tremendous marketing opportunities and unprecedented reach to highly qualified home improvement consumers. Homestore.com will also become the preferred provider of professional referral services for DIYonline.com's fast-growing worldwide community of home improvement and remodeling enthusiasts. Homestore.com (Nasdaq: HOMS) is the world's leading home and real estate network on the Internet.

The marketing initiative involves reciprocal online marketing activities, co-branding opportunities, tool licensing, and the referrals to qualified contractors.

"We feel that this strategic alliance with Homestore.com will play a substantial role in the overall branding and marketing efforts for DIYonline.com. It will also offer both companies excellent opportunities for highly-targeted referrals and uniquely-qualified sales leads," said Michael H. Heisler, CEO and President of DIYonline.com. "This is the first of many strategic affiliations which we are pursuing where both companies bring inherent value and many comparative strengths jointly to the table. We certainly feel that such partnerships serve to validate and confirm the goals of our original business model which has been designed to enable us to create the premier home improvement site on the Internet," added Heisler.

The online marketing components are expected to boost DIYonline.com's Web site traffic and should assist the company in reaching their targeted goals well ahead of previous schedules. The contractor referral component also allows DIYonline.com to complete a key component of their business revenue model by now having access to some of the one million fully-screened, professional home service contractors found in Homestore.com's database.

Further, by licensing many of the company's home improvement project calculators and material estimators, as well as developing "light" versions of their proprietary key design tools for use on Homestore.com's Web sites, DIYonline.com will now be well-positioned to boost site traffic click thru rates to their flagship design tool products, and ultimately for online building materials fulfillment, which is currently in development.

About DIYonline.com

DIYonline.com offers Do-It-Yourself consumers state-of-the-art, customized, home project design software, free of charge online. Using the Web site's powerful design tools and programs, visitors can custom design decks, gazebos, sprinkler systems, kitchens and baths, and many more otherwise complicated DIY projects with the simple click of a mouse. After the exact specifications are entered by the consumer, within 24 hours DIYonline.com presents them with 3-D drawings of the project, easy to follow step-by-step directions and schematics, and a complete itemized list of all required materials and tools. A list of geo-targeted local retailers within the consumer's geographic area where the products can be purchased is also provided. The company recently began a pilot program in Midwest U.S. test markets which will soon give DIY consumers the ability to conveniently order online the products they need to complete projects and have them delivered directly to their home or business.

DIYonline.com is a privately held company with headquarters in Tucson, Arizona and a sales and marketing office based in Lexington, Kentucky. The site is quickly becoming a global virtual community for DIY'ers worldwide with the company's proprietary software tools currently serving more than 120,000 registered users in South Africa, Canada, Australia, Norway, Mexico, and the United States. The site is currently averaging more than 1.5 million page views per month, with registered users creating more than 10,000 separate design projects each month.

About Homestore.com

Homestore.com, Inc. (Nasdaq: HOMS) is the leading network of sites on the Internet for home and real estate-related information, products and services. Homestore.com, Inc.'s family of web sites includes the Homestore.com™, Realtor.com®, HomeBuilder.com™, SpringStreet.com™, Remodel.com™ and HomeFair.com™ Web sites. Consumers can view over 1.3 million new and existing homes for sale and find broker and agent services on Realtor.com®, the official Internet site of the National Association of Realtors®.

Consumers searching for new homes can find more than 130,000 models, new homes and built to suit plans on HomeBuilder.com™, the official new homes site of the National Association of Home Builders. Consumers interested in renting an apartment will find listing information from more than 45,000 properties in more than 6,000 cities on SpringStreet.com&153;. Homestore.com's™ remodeling area covers home improvement needs for both consumers and remodeling professionals. Comprehensive moving and relocation information on the Internet is available from HomeFair.com™.

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All product names, logos and "Design it yourself. Do it yourself.™"
are registered trademarks of DIYonline.com.
Homestore.com™, Realtor.com™, HomeBuilder.com™, SpringStreet.com™,
Remodel.com™, and HomeFair.com™ are all registered trademarks of Homestore.com™

This press release contains forward-looking information within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbors created by those sections. Actual results may differ materially. The matters discussed in this press release also involve risks and uncertainties described from time to time in Homestore.com, Inc.'s filings with the Securities and Exchange Commission (SEC). In particular, see "Risk Factors" in the Final Prospectus included in the Company's Registration Statement on Form S-1 declared effective by the SEC on January 26, 2000 and also see the Company's Annual Report on Form 10-K for the year ended December 31, 1999 filed with the SEC (http://www.sec.gov). We assume no duty to update this information in this press release if any forward-looking statement later turns out to be inaccurate.