Telocity Joins with New York's J&R Music and Computer World to Market High Speed Internet Service; Consumer Electronics Giant J&R will Market Telocity's Service to Customers

Business Wire, August 23, 2000

Business Editors & High-Tech/Entertainment Writers

NEW YORK--(BUSINESS WIRE)--Aug. 23, 2000

Customers of J&R Music and Computer World in New York City will now have an opportunity to shop for high-speed Internet service as they select the latest in televisions, computers, music and other digital equipment, thanks to a marketing agreement between the electronics superstore and Telocity (Nasdaq:TLCT), a national provider of high-speed Internet service for the home. This marks the first time J&R Music & Computer World has entered into an agreement with a national broadband Internet provider and the first retailer chosen by Telocity to market its services.

As part of the agreement, Telocity will be featured in J&R Music and Computer World's high profile advertisements in the New York Times and will have in-store personnel who can educate consumers about the benefits of the high-speed Internet service. Customers will be able to order Telocity's service in the store and will receive one month of free service through the relationship with J&R.

"Telocity turns the slow-moving Internet into a dynamic, high-speed adventure for everyone. For more than 29 years, J&R Music & Computer World has been a New York institution where consumers could test the latest technology. Now, J&R's loyal customers will be able to see firsthand how Telocity can revolutionize the Internet experience," said Telocity senior vice president Regina Wiedemann. Telocity currently provides Internet service using Digital Subscriber Line (DSL) technology.

Telocity will begin jointly promoting its services with the computer superstore at the popular three-day JazzFest 2000 hosted by J&R on August 24-26 at City Hall Park in New York City.

"J&R has always tried to showcase the latest technology for our customers. Back in 1992, we worked with Apple to create a store within a store concept to better sell Macs. We knew an Apple customer was different from a PC customer. Not too far in the future, the PC showroom will host the Intel theater where an Intel full-time employee will demo the latest and the greatest in speed, wireless networking and Internet solutions. Telocity's high-speed Internet service will impress our customers, and the best way for them to understand this technology is to see it firsthand in our store. In addition, other digital devices sold here at J&R can be networked with Telocity's residential gateway to truly revolutionize the Web experience in homes across America," said Michael Eid of J&R Music and Computer World.

The family-run J&R, located across from City Hall in New York, is ranked by Discount Store News as the ninth-largest consumer electronics chain in the country - the only company with a single location in the top 10. For 15 years, advertisements for J&R have appeared on the back page of the New York Times' Sunday "Arts & Leisure" section, as well as in the paper's "Science Times," Circuits," and Friday's "Business Day" sections. J&R also does considerable business through its mail order division & Internet E-commerce site www.jandr.com.

Telocity subscribers can easily self-install the equipment to be surfing the Web quickly. Customers plug Telocity's proprietary VelocityPort (TM) gateway into the back of their computer and install the configuration software. There is no need to purchase a network interface card or additional equipment, and, in minutes, most users are surfing in speeds 50 times faster than an old-fashioned dial-up connection.

New Telocity customers can receive free activation, free use of its residential gateway - a $99 value - that allows a family to surf the Web in high speeds, and no annual contract. In addition, customers of J&R will receive one month of free service.

The service costs $49.95 per month in New York.

Benefits of Telocity service include:

-- Easy sign-up and simple, self-installation of the Gateway

modem;

-- Up to 5 email addresses for each family for the same low

monthly fee;

-- Users can make and receive phone calls and faxes while on the

Internet, without having to pay for a second telephone line;

-- Provides access to rich multimedia content in seconds, such as

the latest MP3 music files and streaming video; and

-- No busy signals or disconnects for callers.

Customers can sign up for Telocity's high-speed Internet service by logging on to Telocity's Web site at http://www.telocity.com or by calling the toll-free number: 1-800-TELOCITY (800/835-6248). Telocity's new Web site also allows customers to track the status of their online order during the several weeks leading up to service start-up. Service is often provided within eight weeks of the customer placing the order.

Telocity now offers residential broadband Internet service in more than 125 metropolitan markets across the nation. The company intends to expand its broadband services to package value-added services that may include secure telecommuting, home monitoring and automation, voice bundling, and entertainment services. Telocity's headquarters is located in Cupertino, Calif.