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FINANCIAL                                                            news
RELATIONS BOARD


COACTIVE MARKETING GROUP               FINANCIAL RELATIONS BOARD
- ------------------------               -------------------------

Donald A. Bernard                      Marilynn Meek - General, 212-445-8451
Executive Vice President               Susan Garland - Analysts, 212-445-8458
 & Chief Financial Officer
516-622-2830

        COACTIVE MARKETING TO REPORT LOSS FOR FISCAL YEAR 2004 AND DELAY
                              FILING OF FORM 10-K

Great Neck, NY - June 25, 2004 -- CoActive Marketing Group, Inc. (Nasdaq: Small
Cap: CMKG), an independent full service marketing, sales promotion and
interactive services company, today announced that the Company will report a
loss for the fourth quarter and year ended March 31, 2004 in its Annual Report
on Form 10-K. The Company had previously announced that it expected a profitable
quarter and year. The Company will file with the Securities and Exchange
Commission ("SEC") to obtain an automatic 15-day extension to the filing
deadline for its Form 10-K to July 14, 2004.

The Company will require the extension due to its adoption of the provisions of
Emerging Issues Task Force ("EITF") 00-21, Accounting for Revenue Arrangements
with Multiple Deliverables effective as of April 1, 2003, and the additional
work required for the Company to reflect the cumulative effect adjustment and to
calculate the pro-forma effect for the years as income in its audited financial
statements.

The Company had previously recognized revenue under certain of its contracts in
stages on a percentage of completion based upon the deliverance of certain
thresholds. Based upon discussion and recent clarification from the SEC provided
to the Company and its auditors at the Company's request, revenue is now
recognized on these contracts only when the entire services offered under each
contract are completed. As a result of the Company's performance and its
adoption of EITF 00-21, the Company expects to report a net loss for the fiscal
year ended March 31, 2004 of approximately $2,600,000 after giving effect to a
non cash cumulative effect of an accounting charge of $2,200,000 net of tax. The
Company would have reported a net loss of approximately $417,000 for the year
due to anticipated sales not materializing in the fourth quarter without the
impact of the cumulative effect adjustment. A considerable portion of these
sales were deferred to fiscal 2005 due to a delay in the execution of several
contracts for a variety of reasons, including, among others, the 2003/2004
California Grocers Strike. These contracts were signed subsequent to March 31,
2004, and the Company expects to report a profitable fiscal 2005.

As result of the 2001 EITF 00-21 adoption and the loss as discussed above, the
company is currently negotiating with its bank a waiver or amendment of the loan
agreement provisions that are currently not in compliance.

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John P. Benfield, President of Coactive Marketing Group, Inc., stated, "We are
very disappointed in our results for fiscal 2004. We have reduced expenses and
revamped our sales efforts to improve profitability. Our goal is to capitalize
on our capacity to offer multi-faceted solutions to our clients using all our
services and skills in an integrated fashion. We are dedicated to regaining our
profitability and credibility in 2005."

CoActive Marketing Group, Inc. is a full-service marketing, sales promotion, and
interactive services company that develops and manages integrated marketing,
sales and promotional programs at both national and local levels for consumer
product companies. The programs are geared towards growing incremental sales and
profits by identifying and addressing key trade, sales and consumer trends.

This press release includes statements, which constitute forward-looking
statements made pursuant to the safe harbor provision of the Private Securities
Litigation Reform Act of 1995. Such statements reflect the current views of the
Company with respect to future events based on currently available information
and are subject to risks and uncertainties that could cause actual results to
differ materially from those contemplated in those forward-looking statements.
Factors that could cause actual results to differ materially from the Company's
expectations are set forth in the Company's Annual Report on Form 10-K for the
fiscal year ended March 31, 2003 under "Risk Factors," including but not limited
to "Unpredictable Revenue Patterns," "Competition," "Customers," "Dependence on
Key Personnel," "Expansion Risk," "Control by Executive Officers," and
"Outstanding Indebtedness, Security Interest." The Form 10-K may be obtained by
accessing the database maintained by the Securities and Exchange Commission at
http://www.sec.gov

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