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Hello Direct Announces Two New Internet Marketing Alliances

    SAN JOSE, Calif., Sept. 3 /PRNewswire/ -- Hello Direct, Inc. (Nasdaq:
HELO), the leading developer and direct marketer of desktop telephone
productivity tools, today announced the signing of two new strategic Internet
alliances -- one with the Online Services Group of R.R. Donnelley & Sons
Company (R.R. Donnelley), and another with PhoneZone.Com.
    Hello Direct will expand its Web presence through  R.R. Donnelley's Select
Source.  This new electronic commerce solution is designed to increase sales,
and drive new and repeat customers by taking product content from the Hello
Direct site and integrating it into other high-traffic Web sites.  According
to Brian Bodell, director of sales, Select Source, "Establishing relationships
with key vendors such as Hello Direct enables us to provide a wide range of
content for our affiliate network."
    PhoneZone.com and Hello Direct have teamed up to create an online
marketplace for small business telecom solutions.  The site will allow
business customers to learn about cutting-edge and established
telecommunications technology, to compare different types of products, and
purchase products online.  "Our goal at PhoneZone.Com is to make it easy for
small and mid-size businesses to find and research telecom solutions
(products, software or services), and to create a marketplace for
revolutionary new telecom products and services," said Brian McConnell,
PhoneZone.Com founder.  "Hello Direct's well-respected products and product
development capabilities, outstanding customer service, and its Internet
commitment make it a perfect partner for us."
    "The formation of new alliances such as these are an important part of
Hello Direct's aggressive Internet development plan," said Alec Glover,
president and CEO of Hello Direct.  "The Internet is already our fastest
growing channel with first half, 1998 sales more than double those of the same
period in 1997.  The Select Source and PhoneZone.Com alliances will help us
maintain our significant Internet momentum."
    In addition to these new alliance programs, Hello Direct already
participates in a number of other online and Internet activities, such as
MyPoints (a consumer-oriented continuity program), the Yahoo Shopping Guide,
Buyer's Zone, CompareNet, Classified2000, SkyMall (a shopping mall comprised
of various catalogers), and several catalog request sites.
    Hello Direct was an online pioneer among business-to-business catalogers
when it first launched its Web site in 1994.  Since then Hello Direct has
proceeded through three major site redesigns to make it even faster and easier
for customers to research and purchase products.  Current capabilities allow
customers secure online order transactions, 24 x 7 availability, online search
features, a shopping cart and special product and merchandising opportunities
not found in Hello Direct's paper catalog.

    About Hello Direct, Inc.:
    Hello Direct, Inc. (http://www.hellodirect.com) is the leading developer
and direct marketer of telephone productivity tools including headsets,
teleconferencing, wireless and related desktop products.  Through its
distinctive catalogs, Web site and outbound telemarketing programs, the
Company offers a broad selection of commercial-grade, brand name, proprietary
and private label products at competitive prices that provide solutions to its
customers evolving communication needs.

    About R.R. Donnelley & Sons Company:
    Select Source (http://www.goselectsource.com) is an electronic commerce solution
offered through the Online Services Group of R.R. Donnelley & Sons Company.
R.R. Donnelley (1997 sales: $4.9 billion) is the largest commercial printer in
North America.  The company is a leading provider of printing and related
services to the merchandising, magazine, book, directory and financial
markets, applying its superior skills, scale and technology to deliver
solutions that efficiently meet customers' strategic business needs.  The
company employs 26,000 people in the United States and worldwide.

    About PhoneZone.Com:
    PhoneZone.Com, Inc. is an industry-leading authority on telecommunications
products and services. The PhoneZone.Com World Wide Web site
(http://www.phonezone.com) simplifies the task of learning about and purchasing a
wide range of telecommunications solutions.  For more information contact
PhoneZone.Com, Inc., at 415-647-9911, by fax at 415-647-9912, or by e-mail at
sales@phonezone.com.


SOURCE Hello Direct, Inc.




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Related links:
  • http://www.hellodirect.com
    CONTACT:
    Dennis P. Waldera, Vice President Direct
    Marketing of Hello Direct, 408-363-2016; or Don Markley, General
    Information, 415-986-1591, of the Financial Relations Board