Verio and AOL Europe Extend E-Commerce And Web-Hosting Alliance With Netscape Online Pact - Company Business and Marketing

Cambridge Telcom Report, August 30, 1999

Verio Inc., the world's largest domain-based Web-hosting company and a leading provider of comprehensive business Internet services, and AOL Europe, the leading pan-European Internet provider, Tuesday announced the expansion of their exclusive marketing agreement for e-commerce, Web-hosting and domain name registration services. The expanded pact builds upon earlier agreements between Verio and America Online (NYSE: AOL) in the United States, and AOL UK and CompuServe UK, to now include the new Netscape Online subscription-free Internet service that launched Tuesday in the United Kingdom.

Under the agreement, Verio will promote its industry-leading e-commerce, Web-hosting and domain-name registration services with a significant media campaign on the new Netscape Online service in the UK. The media campaign will consist of static buttons and banner advertisements throughout the Netscape Online service including the home page, the front page of the My Webpage, Technology and Shopping channels, and other strategic locations. The buttons and banner ads will lead Netscape Online customers to a co-branded Verio@NetscapeOnline page listing Verio's portfolio of e-commerce and Web-hosting services designed specifically for the UK market.

"Through our previous exclusive marketing agreement, Verio proved to be an outstanding partner for AOL UK," said AOL UK Managing Director Karen Thomson. "We are pleased to extend our relationship with Verio through Netscape Online by offering Verio's high-quality e-commerce, Web-site hosting and domain-name registration services as an excellent complement to our own breadth of Internet services."

The subscription-free Netscape Online service targets the value conscious segment of UK Internet users and features the Netscape Navigator browser and Netscape Online Instant Messenger. With Netscape Online, users can easily browse the Web, organize e-mail and newsgroups, publish documents to the Web, and engage in online chats.

"The UK market represents an integral part of our ongoing effort to build upon our world-leading Web-hosting position," said Justin Jaschke, chief executive officer of Verio. "The AOL and CompuServe campaigns launched earlier this year have already provided Verio with an excellent presence in this fast-growing market. Through Netscape Online, we look forward to helping more individuals and businesses build on-line storefronts so they can tap into the global Internet marketplace."

With approximately 265,000 Web sites residing on its servers, including more than 50,000 in the European market, Verio is the world's largest business Web-hosting company. In the United States, Verio offers a diverse selection of Web-hosting services for small and mid-sized businesses. Prices range from $24.95 per month for entry-level hosting to $3,200 per month for highly sophisticated hosting services. E-commerce services, featuring the recently launched VerioStore line, range from $34.95 per month to $399.95 per month. For more information, in the United States call 1-888-GET-VERIO or visit www.verio.com/hosting. In the United Kingdom, visit www.verio.co.uk.

AOL Europe was formed in late 1995 as a joint partnership between America Online Inc. and Bertelsmann AG, the world's third largest media group. From the first service launch in 1996, it has grown from 0 to 2.7 million households in just over three years, making it the largest European Internet online service. AOL Europe is committed to the same multiple-brand strategy successfully developed by AOL in the United States. AOL Europe manages all of AOL's, CompuServe's and Netscape Online's European services across eight

countries. It employs almost 2,000 people, including close to 1,400 in customer services roles.

Netscape Online, AOL UK's subscription-free online service, is targeted at the 'value' sector and will provide pure, high performance Internet access backed by the powerful Netscape brand and AOL infrastructure. AOL is the service for the whole family, providing its members with interactive entertainment, information and education services while giving access to a global online community. CompuServe is aimed at the corporate customer and professional user offering specialized information, large-scale databases, matchless forums and professional communication tools.

Verio Inc. is the world's largest domain-based (e.g. yourcompany.com) Web-hosting company and a leading provider of comprehensive business Internet services, with an emphasis on serving the small and mid-sized business market. The company offers customers a broad range of Internet solutions, including high-speed access, Web hosting, e-commerce, virtual private networks and other enhanced services. Verio supports its operations with highly reliable and scalable national infrastructure and systems including a facilities-based Tier One national network. Verio delivers locally based sales and engineering support in 41 of the top 50 U.S. markets under the Verio brand name and provides Web-hosting services to customers in more than 170 countries. FMI: www.verio.com. The corporate headquarters are located in Englewood, Colorado.