ModusLink’s New Consumer Electronics Solutions Suite Tailored to Meet Specific Needs and Challenges of Highly-Competitive Market

Leverages Market Expertise, Optimized Solutions and Global Reach to Maximize ROI
for Key Market-, Product- and Customer-Centric Supply Chain Strategies

Waltham, Mass.  January 8, 2007 - ModusLink Corporation, a subsidiary of CMGI, Inc. (NASDAQ: CMGI) and leading provider of global supply chain management solutions, today announced availability of the ModusLink Consumer Electronics Solutions Suite, an integrated suite of tailored solutions designed to address the specific supply chain challenges and global operating requirements of consumer electronics companies.  Based on decades of experience developing successful, high-return solutions for the consumer electronics market, ModusLink has documented and standardized the best processes, technologies and operating methodologies available and now offers them as part of its new, integrated solutions suite. 

The new solutions suite helps clients reduce complexity and speed implementation of key supply chain strategies—from late-configuration and global sourcing to direct to retailer fulfillment and expansion into new regional markets—while lowering associated capital investment, cost and risk.  Additionally, with globalization increasing the field of competitors, ModusLink helps clients differentiate themselves by expediting time to market and improving customer service, satisfaction and loyalty.

“Today’s announcement underscores ModusLink’s commitment to the consumer electronics industry and the depth of our experience in helping companies address the specific challenges of this vertical market,” said Joseph C. Lawler, Chairman, President and Chief Executive Officer of CMGI. “While demand for consumer products remains strong, manufacturers are battling the affects of shrinking product lifecycles, rapid commoditization of goods, increased demand for innovation and mounting global competition.  We understand the challenges of this market and have a proven track record of helping consumer electronics companies stay competitive in this challenging business environment.  Our suite helps clients effectively balance customer focus and cost by taking redundancy, inefficiency and risk out of the supply chain, while boosting quality of service to customers.”
 
“ModusLink has continually demonstrated a solid understanding of the unique challenges and operating requirements of our market.  Their expertise and market-specific solutions have been instrumental in helping Newton Peripherals meet continued growth in global demand for our innovative, new MoGo Mouse product,” said Matthew Westover, Newton Peripherals’ CEO and President.  “ModusLink’s tailored supply chain solutions are a fundamental part of our global supply chain operations and help us in our efforts to provide outstanding levels of service to our customers throughout the United States and Europe.”

The new Consumer Electronics Solutions Suite is comprised of 9 “solution packages” that manage the full range of forward supply, reverse logistics and “go-to-market” (channel direct and regional expansion) supply chain activities. Among the solution packages available are the following key offerings:

• Optimized Configuration – Leveraging supply chain network optimization and simulation analysis to determine the best global supply chain model and capacity strategy to meet cost and service targets.
• Retail Direct – All services and processes required to manage, and ship directly to, the retail channel in any geography – from Radio Frequency Identification (RFID) and messaging to merchandising and Collaborative Planning and Forecasting Replenishment (CPFR). 
• Gateway to Market (Asia, Europe and Americas) – All services required to help clients quickly and cost-effectively enter new geographic markets.  In addition to all of the key supply chain services, such as sourcing, light manufacturing, fulfillment and returns, this solution addresses such complex needs as regulatory compliance, taxation, customs and local language support.
• Factory Supply (with optional VMI)  – All services required to source multiple components and materials and deliver to factory consumption points with optimum efficiency, inventory management and customer service, including optional processes that optimize hub operations using intelligent Vendor Managed Inventory (VMI) techniques and direct-line feed supply models.
• Reverse Logistics – Full design and execution of reverse logistics processes that minimize non-value repair and accelerate the identification of no fault found products and components to expedite the processing and return to market of valuable returned product. 

About ModusLink
ModusLink Corporation is a leading provider of global, end-to-end supply chain management solutions. The company provides technology clients in the software, computing, consumer electronics, storage and communications markets with customized supply chain solutions that improve time-to-market, productivity and customer satisfaction while reducing risk and cost. ModusLink's services include consulting and planning, sourcing and supply base management, manufacturing and product configuration, fulfillment, logistics management, e-commerce and the complete range of aftermarket services. With 40 facilities in 13 countries, ModusLink has the largest global footprint in its industry. The company is headquartered in Waltham, Massachusetts and is a subsidiary of CMGI, Inc. (Nasdaq: CMGI). For additional information, see www.moduslink.com.

About CMGI
CMGI, Inc. (NASDAQ: CMGI), through its subsidiary ModusLink, provides industry-leading global supply chain management services and solutions that help businesses market, sell and distribute their products around the world. In addition, CMGI's venture capital business, @Ventures, invests in a variety of technology ventures. For additional information see www.cmgi.com.