Arepa Secures $5 Million in Second-Round Financing From Intel Corporation, Fidelity Ventures and Venrock Associates

Business Wire, August 20, 1998

CAMBRIDGE, Mass.--(BUSINESS WIRE)--August 20, 1998--Arepa, Inc. (www.arepa.com), developer of the first broadband software platform for Internet distribution of CD-ROM content, has recently concluded a $5 million equity financing from Venrock Associates, Fidelity Ventures and Intel Corporation. Since its inception, Arepa has collaborated with leading broadband network providers and content developers to allow distribution of multimedia content to their customers. "The current round of financing provides Arepa with the resources necessary to maintain its leadership position in the burgeoning market segment for broadband content distribution," explains Ric Fulop, Arepa's founder and CEO.

As both cable providers and telecommunications companies aggressively deploy more capable or higher speed networks, these companies are now positioned to introduce previously unavailable services. The ability of Arepa's technology to enable real-time distribution of rich software content is the basis for early engagements with these broadband network providers. For example, Arepa's system architecture is being assessed by @Home Network and MediaOne Express--two of the most innovative services providing high-speed cable Internet access to the majority of broadband subscribers.

"Products like Arepa's have the potential to help speed the distribution of rich content over the Internet," states Avram Miller, corporate vice president and director of business development at Intel Corporation. "This content, in turn, can help improve the user experience and bring new users to the personal computer."

Arepa was founded in April 1996 with initial funding from YAS Corporation, the investment vehicle of Rouzbeh Yassini, inventor of the cable modem and founder of LANcity. Additional financing was secured from Fidelity Ventures, the venture capital subsidiary of Fidelity Investments. Arepa is finalizing the first release of their media deployment architecture and continues to pursue strategic relationships with network service providers and content developers.

About Arepa, Inc.

Founded in April 1996, Arepa is now completing development of the first broadband software platform enabling on-line delivery of high-bandwidth content that, to date, has been restricted to CD-ROM distribution. Arepa's platform will provide cable modem and xDSL subscribers click `n' play access to media-rich content and software, eliminating the need to download or install files. For more information about Arepa, please visit the company's web site at www.arepa.com.

About Fidelity Ventures

Fidelity Ventures is the new business development and venture investing arm of Fidelity Investments. Fidelity Ventures has over $1 billion of private equity capital at work and, among other things, maintains a focus on telecommunications and Internet-related services and software businesses. The firm continually works to identify and invest early in young companies with high growth potential. For additional information, please visit the company's web site at www.fidelityventures.com.

About Venrock Associates

Venrock Associates is a venture capital firm focused on opportunities in information technology and healthcare. Venrock's objective is to create long-term value by helping build technology-related companies from the earliest stages. For more information about Venrock Associates, please visit the firm's web site at http://www.venrock.com.

About YAS Corporation

YAS Corporation provides venture financing, CEO consulting, and system integration for voice, data and video telecommunications services focusing on consumer Internet and Intranet markets. The firm was founded in January 1997 by Rouzbeh Yassini, whose monumental success inventing the cable modem resulted in the establishment of an entire multibillion dollar industry which is now supported by this technology.

CONTACT: Sharon Brucato

Marketing Communications Consultant

714/522-6151

sbrucato@yas.com