FlashNet Exceeds Estimates for Both Revenue & Subscribers; Company Credits Free PC Promotion for Increase in Run-Rate - Company Financial Information

Cambridge Telcom Report, August 9, 1999

FlashNet Communications, Inc. (Nasdaq: FLAS), a leading nationwide Internet access provider, announced record revenues totaling $9.5 million for the second quarter ended June 30, 1999. This reflects a 53 percent increase over revenues of $6.2 million reported in the same period in 1998.

FlashNet added 28,951 net subscribers for the quarter, a 531 percent increase over the second quarter of 1998, and a 60 percent increase over the first quarter of 1999.

"This significant increase occurred during a time that is traditionally seen as a slow quarter," said Russ Wiseman, chief sales and marketing officer of FlashNet. FlashNet closed the quarter with 219,518 total subscribers.

During the quarter, FlashNet became the first nationwide ISP to launch a free PC campaign with a commitment of 2 or 3 years of Internet access. Additionally, FlashNet engaged in a number of strategic relationships with companies including eBay, Intellesale.com, Cidco, iPin, PCWarehouse & Broadcast.com. Other highlights of the quarter included the addition of FlashNet to the Russell 2000 and the announcement of DSL service scheduled for the Fall of 1999.

Net loss was $(6.2) million or $(.45) per share compared to a net loss of $(2.6) million, or $(.47) per share during the second quarter of 1998. Weighted average shares outstanding increased to 13,912,000 compared to 5,500,000 one year ago. Total shares outstanding at June 30, 1999 were 13,953,000.

Operating loss for the second quarter was $(6.5) million compared to consensus estimates of $(4.6) million. The $1.9 million difference was attributed to the deployment of additional network capacity, in anticipation of future growth, and to media costs as FlashNet launched new markets.

Commenting on the Company's results, Scott Leslie, chief executive officer and co-founder, said: "I am pleased to announce that FlashNet's second quarter revenue and subscriber numbers were ahead of estimates. It is particularly pleasing that our internal subscriber growth was higher than two of our largest competitors, and came at approximately half of their cost. Overall, we are extremely encouraged by the results from our marketing initiatives and have actually begun to accelerate the new market roll out schedule."

FlashNet Communications is one of the largest Internet service providers in the U.S., serving consumer and small business customers nationwide. An early pioneer of unlimited use, flat rate pricing, FlashNet offers a full range of Internet services including access services, Web hosting, electronic commerce and software. FlashNet is a leader in providing a safe Internet service for families, businesses and schools with its exclusive Family pack. Based in the Dallas-Fort Worth, TX-area, FlashNet can be found at www.flash.net.

                FlashNet Communications, Inc.
                      Financial Summary
    (unaudited and in thousands, except for per share data
                    and subscriber counts)
                      Three Months Ended

                                           Better            Better
                     6/30/99    3/31/99   (Worse)  6/30/98  (Worse)

Revenue                $9,532     $8,089     18%     $6,232     53%

Gross Profit           $4,857     $4,553      7%     $3,188     52%

Expenses
 Sales and Marketing   5,777      2,553   (126%)     1,800   (221%)
 General and Admin.    2,159      1,961    (10%)     1,223    (77%)
 Ops. and Cust. Support2,253      1,981    (14%)     1,326    (70%)
 Depreciation and
  Amort.               1,190        889    (34%) 764    (56%)
Total                 11,379      7,384    (54%)     5,113   (123%)

Loss From Operations   (6,522)    (2,831)    n/a     (1,925)    n/a

Interest Income (Expense) 337       (668)(A) n/a       (647)    n/a

Loss Before Extraordinary
 Items and Accretion
 on Redeemable Preferred
 Stock                 (6,185)    (3,499)    n/a     (2,572)    n/a

Basic and Diluted EPS(B)($.45)     ($.50)    n/a      ($.47)    n/a

Total Subscribers     219,518    190,567     15%    160,766     37%


  Balance Sheet Data

                                         June 30,        March 31,
                                           1999             1999

Current assets                           $41,925          $47,049
Property and Equipment, Net               13,891           11,304
Other Assets                                 365              243

Total Assets                             $56,181          $58,596
Current liabilities                       23,944           22,304
Capital Lease Obligations,
 net of current portion                    2,607              669

Total liabilities                         26,551           22,973

Total shareholders' equity (deficit)      29,630           35,623

Total Liabilities and
 Shareholder Equity                      $56,181          $58,596
>TB

(A)  Includes $328 of debt discount amortization associated with the
Goldman Sachs and Ascend Notes.
(B)  Calculated using 13,913,000 and 5,500,000 weighted average shares
outstanding respectively.