Net Nanny Signs Marketing and Distribution Deal with Netscape

Business Wire, June 30, 1998

BELLEVUE, Wash.--(BUSINESS WIRE)--June 30, 1998--Net Nanny Software International Inc. (NNS.V, NNSWF), leading developers of online child safety and PC security software, announced today that it was chosen, along with only 22 other companies, to offer its software through Netscape Communications Corporation's newly expanded SmartUpdate service.

SmartUpdate, part of Netscape's Computing & Internet channel, is located on The Netscape Netcenter portal site at http://home.netscape.com. Starting in July, the service will allow consumers to automatically download an evaluation version of Net Nanny's filtering software with a simple click of a button. At any time during the evaluation period customers can click on a "Buy Now" button that will direct them back to Netscape's Software Depot where they can purchase the full version.

Netscape's Netcenter Web site attracts more than 8.2 million visitors a day and over the past seven months SmartUpdate has successfully generated more than three and a half million downloads of software products, becoming one of the largest distributors of software on the Internet. Of the millions of people who visit Netscape's site each month, those who have concerns about protecting their children and their digital data now have an easy way to access a tool that addresses their concerns.

"We are extremely pleased to participate in Netscape's SmartUpdate service. We expect to see a major difference in the amount of people trying out and buying our product," said Gordon Ross, President and CEO of Net Nanny. "Online safety of children and security of digital data are extremely important issues for consumers who are using the Internet. Netscape's impressive online distribution channel and means of notifying consumers of software updates helps to get this important technology into the hands of the consumer in a very quick and efficient manner. We commend Netscape for recognizing the importance of including a product like ours that is so important to the safety and welfare of our children as well as our digital data."

Net Nanny is the only Internet filtering software product available on this service. As part of the arrangement Net Nanny will receive a line listing in Netscape's plug-in program, an area of the site devoted to products that work with Netscape. A hot link on Netscape's Netcenter web site will connect directly to Net Nanny's home page and a floating Net Nanny banner ad will be displayed which links the two sites. Additionally, the Company will be allocated a significant portion of advertising impressions on Netscape's site.

Netscape SmartUpdate is a personalized notification and updating service that optimizes a user's Internet experience by providing the latest audio, video and communications components and add-ons for Netscape Communicator client software. Beginning in July, Netscape SmartUpdate will also offer partner products free-of-charge for automatic download. Email notification, improved download and installation performance and a streamlined registration process are being introduced with this generation of the SmartUpdate service.

Netscape Communications Corporation

Netscape Communications Corporation is a leading provider of open software and services for linking people and information over enterprise networks and the Internet. Netscape offers a full line of clients, servers, development tools, commercial applications, and professional services to create a complete platform for next-generation, online applications. Traded on NASDAQ under the symbol NSCP, Netscape Communications Corporation is based in Mountain View, California.

Netscape, Netscape Navigator, and the Netscape N logo are registered trademarks of Netscape Communications Corporation in the United States and other countries. Other Netscape logos, product names, and service names are also trademarks of Netscape Communications Corporation, which may be registered in other countries. Other product and brand names are trademarks of their respective owners.

Net Nanny Software International Inc.

In January 1995, Net Nanny Software International Inc. introduced the first filtering software product of its kind. Today, Net Nanny and NNPro for networks continue to be the preferred choice for parents, schools, and businesses that want flexible, editable software tools and free databases for protecting their families, their organizations and their digital data. The products control more than just the Internet - they are the only tools that work at the operating system level, monitoring, auditing, and/or blocking material in every Windows application, online or offline, in real time. This unique approach allows the products to also patrol the most potentially dangerous online environments -- email, chat rooms and one-on-one instant messaging programs -- in which children tend to be at the most risk. The Company also holds an exclusive patent on keystroke dynamics, a biometrics security and access control technology.

Net Nanny is on the advisory committee of the U.S. Congressional Internet Caucus and is a member of the Association for Interactive Media, a trade association that lobbies Congress on behalf of the Internet industry. For additional information, visit Net Nanny's Web site: www.netnanny.com, or call the Company directly at 425/688-3008, or 604/662-8522.