Leading Internet grocer Peapod, Inc. (Nasdaq: PPOD) and InformLink, Inc., a leading e-commerce software and services provider, today announced that they have teamed up to offer customers an even more personalized way to save money when shopping on peapod.com for groceries and household goods.

Any customer who shops at Peapod will be able to take advantage of manufacturer-sponsored coupons and incentives tailored specifically to his or her unique shopping behavior. Customers may access the coupons at a variety of points on the Peapod web site, from the “My Peapod” page to the “My Lists” section to Peapod’s virtual aisles and shelves.

The coupons and incentives will be relevant to each Peapod consumer based on his or her purchase history, using InformLink’s proprietary targeting software. For example, a customer who regularly orders hot dogs may see coupons for various types of hot dogs, as well as offers for buns, mustard and other complementary items. A customer who orders diapers may see offers for infant formula, baby wipes and related products.

Peapod’s Chicago-area customers will be the first to benefit from the new e-coupon feature, which will soon be introduced in other Peapod markets. The new feature will be clearly visible as soon as customers log onto Peapod with their user name and password.

“This is a great benefit for customers because it offers instant savings on the items that they are most likely to need and buy,” said Thomas Parkinson, Peapod’s co-founder and chief technology officer. “By targeting coupons to each customer’s buying habits, the shopping experience becomes more personalized. The more customers use Peapod, the more we can customize their savings.”

Customers logging onto peapod.com can click on “Coupon Savings” to go straight to a list of coupons for items that they have purchased in the past. One click on a coupon logs the item in the consumer’s cart and immediately notes the discounted price. The dynamics of the program make it flexible, to reflect each customer’s personal preferences.

“These new incentives allow Peapod to offer a valuable new benefit to customers,” said Michael McCarroll, president and co-founder of InformLink. “InformLink’s technology, along with InformLink’s relationships with major consumer packaged goods companies, enable us to help Peapod meet customers’ individual shopping needs and help them save money all at the same time.”

InformLink, Inc. (www.informlink.com) develops software and services for retail e-commerce. In its partnerships with online retailers, InformLink helps to increase average order size and repeat order rates. Through its relationship with manufacturers, InformLink enables creation and execution of targeted marketing programs and incentives. InformLink’s consumer analytics practice helps manufacturers and retailers to practice electronic marketing with greater effectiveness and efficiency. More than 80 percent of on-line grocery transactions are conducted at retailers using InformLink’s Electronic Consumer Incentive(TM) (ECI) technology. Founded in 1999, InformLink is headquartered in San Mateo, Calif. and can be reached at (650) 373-0373, or via email at info@informlink.com.

Founded in 1989, Chicago-based Peapod, Inc. is a leading Internet grocer, providing consumers with broad product choices and local delivery services. With 1999 sales of $73 million, the Company currently serves more than 110,000 customers in Boston, Southern Connecticut, Long Island, Washington, D.C., Chicago and the San Francisco Bay Area. Peapod also serves customers nationwide through its “Peapod Packages(TM)” service. In addition, Peapod is a provider of targeted media and research services to consumer goods companies, offering its unique medium for targeting promotions and advertising at the point of purchase and conducting cost-effective research. Peapod’s shares are traded on the Nasdaq under the symbol “PPOD”.