BURLINGAME, Calif. - November 13, 2000 - In a sign that good companies can still find growth capital in today's challenging investment environment, Burlingame-based TheRightSize, Inc., a profit enhancement service for multi-channel retailers, announced today it has raised $1.4M in second round funding. The round was led by Paradise Internet Capital, and includes investors from Retail Options LLP, Kristbjorg Associates, Coast Pacific Asset Management, and Series A investors.

Richard Hennessy, managing director of Paradise Internet Capital, explained Paradise's strategy; "we look for companies who deliver measurable value to large clients in industries where we have strategic relationships. TheRightSize focuses on increasing the profitability of major brands in the relatively slow growth apparel industry. Our investment in TheRightSize was based on the quality of the management team, their proprietary technology, and on their vision of helping apparel retailers become more profitable through a universal sizing translator. We intend to help establish TheRightSize as the global sizing standard."

Returns represent catalog/online apparel retailers' second largest cost. A recent Ernst & Young report cited "fear of buying the wrong size" as the single largest inhibitor for online apparel sales. Online/catalog consumers return one of every six items they purchased because it did not fit. The growth of direct-to-consumer catalog and online apparel sales is expected to balloon the cost of fit-related returns from an estimated $12B in 1998 to a forecasted $17 billion by 2003 in the US alone.

"Our mission is to improve our retail subscriber's bottom line by increasing customer satisfaction, reducing size-related returns and adding top line growth," said TheRightSize co-founder & CEO Ernesto Aguirre, who served previously as president of apparel for high-growth companies Esprit, JoeBoxer Corp. and Perry Ellis Mens. "We're particularly pleased to welcome Paradise Internet Capital as an investor. Their commitment affirms our strategy of building an international business from Day One. We intend to use this capital to integrate our service with selected US online retailers in Q4, sign major international clients, and further develop our relationships with JC Penney, Puma, Ocean Pacific, and others."

About TheRightSize, Inc.: