Dow Jones 10516.68 +83.27  2:08 pm EST, Wednesday., March 6, 2002  NASDAQ  1861.79  -4.50  For info, visit access.smallcapnetwork.com .  S & P 500  1153.76  +7.62  To be removed, please click here .  Russell 2000     471.29 + 2.62  VOLUME 02: ISSUE 18 Cross Media Reports Outstanding Numbers   The SmallCap Digest issued our short term trading alert on Cross Media (XMM) November 6th, 2001.  We recommended Cross Media to our subscribers at $6.70 per share.  Today we are proud to announce that Cross Media is trading at its all time high.  The current price of $12.10 per share means that subscribers who purchased shares in the company upon receiving our trading alert have gained in excess of 80%. The future for this company is even brighter.  Cross Media reconfirmed its guidance for revenues of $200 million and $1.25 per share plus in earnings for this year.  At $12.10 per share Cross Media is now trading at a forward P/E ratio of 9.68 and a trailing P/E of 14.  Take a look at what the average P/E of companies in Cross Media's sector by clicking here.  The P/E ratio for the sector is 36 which if applied to Cross Media would project a valuation of $30.96 per share. Any way investors look at it, the company is still very undervalued. However, we believe that the Cross Media story is just starting to reach Wall Street.  Once institutions discover this gem the valuation gap will quickly close.  Eventually in the not too distant future the company will trade at a premium to the industry due to its tremendous growth.  Our one year price target for Cross Media is $25.  Investors who have missed our initial trading alert can still do very well by purchasing Cross Media on pullbacks.  Unfortunately, we can't roll back time for our subscribers but going forward Cross Media will continue its superb performance and reward investors. Highlights from Cross Media's Fourth Quarter  4th Quarter Revenues- $31 million- up 100% over 2000 4th quarter  4th Quarter Profits- $4.1 million- $.34 per share  Year End Revenues- $100 million- up 80% over 2000  Year End Earnings- $8.8 million- $.86 per share Here is the complete text of the news release for your review:        Wednesday March 6, 8:05 am Eastern Time Press Release SOURCE: Cross Media Cross Media Reports Record 2001 Revenues of $100 Million and Record EPS of $.86 Q-4 2001 Revenues Surge 129% Over Q-4 2000 to $31 Million with Q-4 EPS of $.34 NEW YORK, March 6 /PRNewswire-FirstCall/ -- Cross Media (Amex: XMM - news), a leading technology driven targeted marketing company committed to redefining the art and science of direct marketing, today reported record revenues and financial results for the fourth quarter and year ended December 31, 2001. The Company reported revenues of $100.1 million and net income of approximately $8.8 million resulting in fully diluted earnings per share of $.86 for the year. Revenues for 2001 increased $44.6 million, or 80%, over revenues for 2000, which totaled $55.5 million. The Company posted net income for 2001 of $8.8 million compared to a net loss of $4.9 million in 2000. Net income after preferred dividends totaled $8.0 million applicable to common shareholders for 2001, compared to a net loss to common shareholders of $44.6 million for the year 2000. Revenue for the quarter ended December 31, 2001 totaled $30.9 million, an increase of $17.4 million, or more than 100% over the comparable quarter 2000 when revenue totaled $13.5 million. Fully diluted earnings per share for fourth quarter 2001 is $.34, compared to a loss of $1.25 per share for fourth quarter 2000. ``Approximately fourteen months ago, prior to the deepening economic contraction and international political turmoil which ensued in 2001, we projected that the Cross Media sales and marketing organization, with a proven ability to generate cash flow and revenues on a highly predicable basis, would achieve a minimum of $98 million in revenues,'' stated Ronald Altbach, Chairman and Chief Executive Officer of Cross Media. ``Needless to say, we are very pleased with our performance.'' Mr. Altbach continued, ``While our management team is already focused on financial results and activities for 2002 and beyond, we want to reflect for a moment on what our Company has been able accomplish this last year in a difficult economic environment. Quarter after quarter, this high growth, recession-resistant, multi-channel, multi-product company has performed with sequential increases in revenues and earnings for an impressive five quarters. Shareholder value enhancement has been provided through a combination of earnings and revenues growth as we continue to redefine the art and science of targeted marketing capitalizing on the world- wide direct-to-the-consumer movement.''      Some of our key accomplishments over the last year include:     -- LifeMinders Acquisition:  The Company successfully acquired and        integrated the business of LifeMinders, Inc., a leading online direct        marketer.  This transaction resulted in a powerful technology platform        for personalized email delivery which Cross Media is now utilizing to        deliver over 200 million permission-based e-mails monthly, a richly        profiled, 20 million person database and approximately $21 million in        cash, net of transaction costs.     -- Balance Sheet Enhancement:  The Company redeemed or converted all        outstanding preferred stock resulting in a simple capital structure,        and increased stockholders' equity from $9.6 million for fiscal 2000 to        $58.2 million for fiscal 2001.     -- Management and Infrastructure:  Cross Media has successfully recruited        industry veterans and experts in all aspects of our business: direct        marketing and sales (online and offline); finance; operations and        business integration; technology and data.  The addition of these        seasoned executives to our corporate operations is resulting in a fully        integrated operating enterprise.  In addition, the Company now has in        place management and other infrastructure necessary to significantly        expand the Company's next generation of activities.     -- Products:  With the acquisition of National Syndications on January 11,        2002, Cross Media now offers over 100 different products and services        across our multi-channel platforms. As the next generation        implementation of Cross Media's strategy to generate subscription-based        revenues from Web-centric products, the Company recently launched three        membership programs offering discounts goods and services including        travel and leisure products: http://www.destinations-direct.com; health        and wellness products: http://www.wellshore-direct.com and other        consumer products and services www.premia-network.com.     2001 Summary Financial Data     -- Q-1:  Revenues, $19.7 million; Net Income (Loss),  ($0.2) million.     -- Q-2:  Revenues, $23.6 million; Net Income,      $1.8 million.     -- Q-3:  Revenues, $25.9 million; Net Income,      $2.3 million.     -- Q-4:  Revenues, $30.9 million; Net Income,      $4.1 million.     *Represents net income available to common shareholders 2002 Outlook The Company is reiterating its projected revenues for 2002 in excess of $200 million and fully diluted earnings per share in excess of $1.25. This will represent a revenue increase of over 100% over fiscal 2001. Performance for the first quarter ending March 31, 2002 is progressing on target with the 2002 projections. Conference Call and Webcast Ronald Altbach, Chairman and Chief Executive Officer, and other members of the executive management team will discuss fourth quarter and year-end 2001 financial results during a conference call and webcast today at 11:00 a.m. ET and will be available to answer questions and discuss the current state of the Company. Participants may ask questions during the Q & A segment of the call or, if they prefer, may e-mail questions in advance of the call to A. J. Cervantes, Senior Vice President, Business Development at acervantes@xmmcorp.com. This call is being webcast by CCBN and can be accessed at Cross Media's web site at http://www.xmmcorp.com. Investors may also access the call by dialing (888) 232-0365, code 578083 or from an international location by calling (805) 240-9653. The webcast will also be distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at http://www.companyboardroom.com or by visiting any of the investor sites in CCBN's Individual Investor Network such as America Online's Personal Finance Channel, Fidelity Investments® (Fidelity.com) and others. Institutional investors can access the call via CCBN's password protected event management site, StreetEvents (http://www.streetevents.com). About Cross Media Cross Media is a leading technology-driven marketing company engaged in sophisticated targeted marketing utilizing multiple direct marketing channels including email, voice, direct mail, interactive voice response and Internet with its proprietary X-ID(TM) profiling technology, resulting in a multi- dimensional marketing platform. Cross Media seeks to achieve revenue growth and earnings leverage by cross marketing a broad array of products and services, including membership services and high-end bundled periodicals, through multiple channels to an expanding 30 million consumer base utilizing state-of-the-art direct marketing strategies. Through Cross Media's voice- driven customer acquisition programs, Cross Media Marketing contacts and retains critical data on more than twenty million persons annually. The Company continues to exploit its expansive database in other technology-driven marketing channels, facilitating additional e-commerce transactions to increase revenues while concurrently lowering costs and increasing margins. In January 2002, Cross Media acquired National Syndications, Inc., a direct marketing company with significant expertise in print advertising generating in excess of $50 million in revenues for 2001. For more information about Cross Media, visit the Investor Relations section of http://www.xmmcorp.com or email Alfonso J. Cervantes, Senior Vice President, Business Development, acervantes@xmmcorp.com. Cautionary Statement Regarding Forward-Looking Statements This announcement contains forward-looking statements that involve risks and uncertainties that could affect Cross Media's ability to achieve the anticipated financial results. Additionally, certain statements contained herein and in the information posted on the web site of Cross Media that are not based on historical fact are ``forward looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. Cross Media intends that forward-looking statements contained herein and on its web site be subject to the safe harbor created thereby. Such forward-looking statements are based on current expectations of management but involve certain risks and uncertainties. Cross Media's actual results, performance or achievements could differ materially from the results, performance or achievements projected in, or implied by, such forward-looking statements as a result of risk factors, including, without limitation, the following: Cross Media's ability to integrate the recently acquired LifeMinders and National Syndications, Inc. operations and to make additional strategically appropriate acquisitions; the adequacy of accounts receivable reserves and other significant estimates, changes in economic conditions or a material decline in the availability of consumer credit, interest rate fluctuations, Cross Media's limited operating history, competitive factors, the need to manage growth, volatility in the market price of the common stock and the securities markets generally, risks relating to government regulation of telemarketing and Internet marketing activities, Cross Media's ability to exploit its database and technological innovations and potential dilution. These factors are described in detail in Cross Media's filings with the Securities and Exchange Commission, including, where applicable, its most recent filings on Forms 10-KSB, 10-QSB and 8-K, and registration statement on Form S-3. Cross Media's filings with the SEC are available to the public from commercial document- retrieval services and at the web site maintained by the Sec free of charge at http://www.sec.gov. Cross Media does not assume any responsibility to update the information included in this press release or on its web site, whether as a result of new information, future events or otherwise. Cross Media's estimates are based on preliminary financial information which has not been audited by Cross Media's independent public accountants, and is therefore may be subject to adjustment. Cross Media's projections are based on numerous assumptions about its business, general economic conditions, competitive factors, industry performance and other factors which cannot be predicted with certainty. Therefore, Cross Media's results are likely to vary from the projections, and the variations could be material. Accordingly, neither the estimates nor projections should be regarded as a representation or a prediction that Cross Media or any of the other companies presented will achieve any particular results.                        Cross Media Marketing Corporation                                Financial Table                 As of and for the year ended December 31, 2001                     ($ in thousands except per share data)                                                     Year Ended December 31,                                                         2001           2000     Operating Results:      Revenues                                   $100,116        $55,487      Gross profit                                 28,239         14,109       Operating expenses                    17,071         13,685      Operating income                        11,168            424       Interest expense                          2,060          4,363        Provision for income taxes          275            279      Income (loss) before extraordinary item           8,833        (4,218)       Extraordinary loss                         --            767      Net income (loss)                        8,833        (4,986)       Preferred dividends                     831         39,603      Net income (loss) available to       common stockholders                $8,002      $(44,589)      Earnings per share                       $0.86        $(9.18)      Weighted Average Shares- Diluted                  9,300          4,857                                                             December 31,     Balance Sheet Data:                           2001           2000      Total assets                                    $95,211        $43,944      Total liabilities                                 $36,970        $28,059      Working capital                              $38,134         $5,093      Mandatorily redeemable preferred stock              $--         $6,245      Stockholders' equity                       $58,241         $9,640 SOURCE: Cross Media  D I S C L A I M E R : The SmallCap Digest is an independent electronic publication committed to providing our readers with factual information on selected  publicly traded companies. 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