SAN FRANCISCO, Sept. 23 -- The Internet is the fastest- growing business-to-business direct marketing medium, according to a newly updated study commissioned by the Direct Marketing Association (The DMA) and conducted by The WEFA Group, Inc.

"Direct marketing is being revolutionized by business-to-business marketing on the Internet," said H. Robert Wientzen, president & CEO, The DMA. "While b-to-b sales are growing in each of the major direct marketing media at a very healthy clip, this growth pales in comparison to business sales generated specifically by the Internet. Clearly, direct marketers have been quick to successfully employ the Web as a sales and marketing tool to businesses."

"By 2004, total b-to-b direct marketing sales will surpass $1 trillion. Eight million Americans will be employed as a result of these sales," Wientzen said.

Wientzen announced the research results today at the Direct Marketing to Business (DMB) Conference in San Francisco. Direct marketing business-to-business sales growth continues to outpace overall U.S. business-to-business growth. From 1994-1999, direct marketing sales to business grew 11 percent per year, almost twice the growth of total annual U.S. business sales growth of 5.6 percent. Business sales generated by direct marketing are projected to grow 10.3 percent annually from 1999-2004, versus 6 percent annual growth in overall business-to-business sales.

INTERNET LEADS IN DIRECT MARKETING B-TO-B SALES GROWTH /2

* Compounded Annual Growth Rate

Ad spending is becoming more efficient, and is projected to grow at a slower pace than sales across all direct marketing media from 1999-2004.