IMVU Raises Prices

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IMVU inc.

351

11/17/10

Price Increase for Virtual Goods in the IMVU Catalog

We are raising prices for virtual goods today. I want to explain why we are raising prices.

1. To increase growth for IMVU and Creators. Higher prices means more credits for you and us.
2. To make pricing more fair. It is harder and more complex to create rooms and furniture products, so we want to ensure the reward for creating those products is higher.

How do we know that IMVU members will accept the higher prices? Because we did pricing tests with IMVU members, and these tests showed that demand for goods in the catalog will stay the same at these prices.

SUMMARY OF THE CHANGES:

• Base price for rooms will increase to 500 credits, if the current price is less than 500.
• Base price for furniture items will increase to 350 credits, if the current price is less than 350.
• Base price for all other items will increase by 10%.
• Creator profit for the first direct IMVU Inc. derivation will increase automatically by the same percentage as the base price increase for that product - as long as it is derivable.
• Profits for other items in the derivation chain will stay the same, and Creators can adjust them to suit their needs as necessary.
• Creator profit for items that are non-derivable will not change automatically even if they are direct derivations of IMVU Inc products.

We cannot instantly change all the prices in the catalog, but they will all change within the next 2 days starting now.

We have provided detailed examples of the price changes in our blog post. Please review and let us know if you have any questions.

These price changes will increase your business and profits, in most cases.

Sincerely,

Cary ("CaryJay") Rosenzweig
IMVU Chief Executive Officer