Third quarter highlights include:

• Revenue of $46.7 million, an increase of 201 percent from net revenue¹ of the comparable year-ago period.

• Net income of $3.5 million, or $0.05 per diluted share, excluding the reduction in the valuation allowance on deferred tax assets of $20.6 million. Net income including the benefit of realized deferred tax assets was $24.1 million, or $0.34 per diluted share.
• EBITDA² of $8.2 million, or $0.12 per diluted share, an increase of 108 percent from the comparable year-ago period.
• Launched Avenue A/Razorfish Search, a new integrated, in-house division that combines the expertise and specialized methodologies of eonMedia with the largest buyer of search, Avenue A/Razorfish, to create the industry’s largest search engine marketing firm (SEM).
   

“During the third quarter, each of our operating segments made good progress, as evidenced by significant, but early stages, of integration between Avenue A/Razorfish, continued strong revenue growth by Atlas DMT, and our newest operating unit DRIVEpm’s first profitable quarter,” said Brian McAndrews, president and CEO of aQuantive, Inc.  “The digital marketing industry’s growth continues to accelerate, and we believe our recent strategic moves position us for continued long-term growth and profitability.”

Historically, aQuantive has recorded a full valuation allowance on its deferred tax assets, the majority of which are net operating loss tax carry-forwards generated before aQuantive achieved profitability.  During the third quarter, aQuantive concluded that it will likely be able to realize the benefit of these deferred tax assets in the future.  Consequently, a credit to income taxes of $20.6 million has been recorded to net income.

For the quarter ended September 30, 2004, aQuantive reported revenue of $46.7 million, compared to net revenue of $15.5 million for the quarter ended September 30, 2003.  Net income for the third quarter 2004 was $3.5 million, or $0.05 per diluted share, excluding the reduction in the valuation allowance on deferred tax assets of $20.6 million.  EBITDA was $8.2 million for the third quarter 2004, or $0.12 per diluted share, compared to $3.9 million, or $0.06 per diluted share for the third quarter 2003.

For the nine months ended September 30, 2004, aQuantive reported revenue of $97.2 million, compared to net revenue of $45.6 million for the nine months ended September 30, 2003.  Net income for the first nine months of 2004 was $15.2 million, or $0.22 cents per diluted share, excluding the reduction in the valuation allowance on deferred tax assets of $20.6 million, compared to $7.7 million, or $0.11 cents per diluted share for the comparable period last year.   For the first nine months of 2004, EBITDA was $22.2 million, or $0.33 cents per diluted share, compared to EBITDA of $9.8 million, or $0.14 cents per diluted share for the first nine months of 2003.

¹Net Revenue for 2003 is a non-GAAP financial measure as it excludes media costs paid to publishers.  Effective January 1, 2004, Avenue A, now Avenue A/Razorfish, began recording revenue exclusive of media costs as a result of contractual changes with advertisers and publishers.  The Company has shown net revenue in 2003 to allow for better comparability with its 2004 results.

²EBITDA, (or earnings before interest and other income, income tax, depreciation and amortization) is a non-GAAP financial measure.  See supplemental schedule of EBITDA reconciliation to GAAP net income.

aQuantive is providing additional financial information about its businesses in order to provide greater visibility into the contributions of each business segment and to allow greater comparability to other companies.  These segments are as follows:

Digital Marketing Services

aQuantive’s digital marketing services (DMS) segment, consisting of interactive agencies Avenue A/Razorfish and i-FRONTIER, had third quarter revenue of $28.3 million, compared to 2003 third quarter net revenue of $7.3 million.  Operating income for the third quarter of 2004 was $2.5 million, compared to $1.7 million for the third quarter of 2003.  The company completed its acquisition of SBI.Razorfish on July 27, 2004.  Accordingly, the third quarter results for the DMS segment include approximately two months of Razorfish operations.

Digital Marketing Technologies

aQuantive’s digital marketing technologies (DMT) segment, consisting of Atlas DMT, Atlas OnePoint (formerly GO TOAST) and Atlas NetConversions, had revenue of $15.6 million in the third quarter of 2004, compared to revenue of $8.2 million in the third quarter of 2003.  Operating income for the third quarter of 2004 was $6.7 million, compared to $3.0 million in the third quarter of 2003.

Digital Performance Media

aQuantive’s digital performance media (DPM) segment consists of DRIVEpm and European-based MediaBrokers.  This segment had revenues of $2.8 million, and an operating income of $99,000 in the third quarter of 2004, representing the first profitable quarter for our newest business segment, and DRIVEpm’s first quarter of stand-alone profitability. 

Guidance

aQuantive provided updated guidance for fourth quarter and full year 2004, to reflect slightly lower revenue and profit expectations, largely related to the Razorfish operations.

Fourth Quarter Guidance:

• Revenue of $53-$56 million
• Net income of $0.03-$0.05 per diluted share, assuming an income tax rate of 40%.
• EBITDA of $0.09-$0.12 per diluted share

Full Year 2004:

• Revenue of $150-$153 million
• Net income of $0.25-$0.27 per diluted share, before the one-time tax benefit in Q3.
• EBITDA of $0.42-$0.45 per diluted share

Third Quarter 2004 Conference Call/Webcast Today at 8am PT/11am ET

aQuantive, Inc. will host a conference call/Webcast to discuss third quarter financial results today at 8am PT/11am ET.   The conference call will be webcast from the Investor Relations section of the Company’s website at www.aquantive.com/investor.  Interested parties should log on to the webcast approximately 15 minutes prior to download any necessary software.  The webcast is not interactive. 

About aQuantive, Inc.

aQuantive, Inc. (NASDAQ: AQNT), a digital marketing services and technology company, was founded in 1997 to help marketers acquire, retain and grow customers across all digital media.  Through its operating units, full-service interactive agencies Avenue A/Razorfish (www.aa-rf.com) and i-FRONTIER (www.ifrontier.com); Atlas DMT (www.atlasdmt.com), a provider of advertising technology solutions; and DRIVEpm (www.drivepm.com), a performance media company, aQuantive is positioned to bring value to any interaction in the digital marketplace.  aQuantive (www.aquantive.com) is headquartered in Seattle.  Atlas DMT is a member of the NAI and adheres to the NAI privacy principles that have been applauded by the FTC.  These principles are designed to help ensure Internet user privacy.  For more information about online data collection associated with ad serving, including online preference marketing and an opportunity to opt out of the Atlas DMT cookie, go to: www.networkadvertising.org.

Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Words such as "expects," "anticipates," "predicts," and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. Forward-looking statements also include any other passages that relate to expected future events or trends that can only be evaluated by events or trends that will occur in the future.  The forward-looking statements in this release include, without limitation, statements regarding expected financial performance for the fourth quarter of 2004 and for the full year 2004. The forward-looking statements are based on the opinions and estimates of management at the time the statements were made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. These risks and uncertainties include, among others, the risk that the company may not successfully complete the integration of companies it acquired earlier this year, including Razorfish, TechnologyBrokers and MediaBrokers, the risk that the company may incur unforeseen expenses relating to such acquisitions, the risk of unforeseen changes in client online advertising budgets, unanticipated loss of clients, the potential failure to attract new clients due to the company's inability to competitively market its services, the risk of fluctuating demand for its advertising services, the potential failure to maintain current, desired client relationships or to achieve effective advertising campaigns for existing clients, potential deterioration or slower-than-expected development of the Internet advertising market, quarterly and seasonal fluctuations in operating results, timing variations on the part of advertisers to implement advertising campaigns, costs and risks related to acquisitions of technologies, businesses or brands, the short term nature of the company's contracts with clients, which generally are cancelable on 90 days' or less notice, and the uncertainties, potential costs, and possible business impacts of unfavorable rulings in previously announced lawsuits involving the company. More information about factors that could cause actual results to differ materially from those predicted in aQuantive's forward-looking statements is set out in its quarterly report on Form 10-Q for the fiscal  quarter ended June 30, 2004, filed with the Securities and Exchange Commission.  Readers are cautioned not to place undue reliance upon these forward-looking statements, which speak only as to the date of this release.  Except as required by law, aQuantive, Inc. undertakes no obligation to update any forward-looking or other statements in this press release, whether as a result of new information, future events or otherwise.