BellSouth Launches Internet Appliance Product Line

Business Wire, Dec 14, 2000

Business Editors

ATLANTA--(BUSINESS WIRE)--Dec. 14, 2000

Company Introduces MailBug(TM) E-mail Device in Atlanta and Louisville

Marking its entry into the non-PC Internet appliance field, BellSouth (NYSE: BLS) today announced the launch of the MailBug(TM) E-mail device.

The new product will be available immediately in Atlanta, GA and Louisville, KY and provide users a simple and cost-effective method for enjoying the benefits of e-mail.

BellSouth's e-mail device is the first product in what will be a complete line of non-PC Internet appliances. The product line will also eventually include such items as web terminals, television set-top boxes, Web-pads and wireless devices, all of which are intended to deliver the Internet in a simple, convenient and cost-effective manner. These products are being developed to satisfy a growing and future demand for non-PC devices that is anticipated both by BellSouth and industry analysts.

"BellSouth's new MailBug E-mail device gives our customers who do not have a PC at home, or who have never used e-mail, an ideal, inexpensive and easy-to-use method for connecting and communicating," said Alice McCall, Vice President of BellSouth Consumer Marketing. "This product, along with the line of non-PC Internet appliances we plan to roll out, serves as a perfect secondary access point to e-mail and information for a busy household that does not want to purchase another PC. In addition, these products further fulfill BellSouth's mission of offering customers a complete portfolio of technology options," McCall continued.

The MailBug E-mail device is the ideal tool for first time users to enjoy the benefits of e-mail communication and has three main features. The first, BellSouth E-mail Service, allows users to send, receive and forward text messages to anyone with an Internet e-mail account anywhere in the world. The MailBug also features e-information, which allows users to obtain regularly updated text information from the Internet including news, stock quotes, weather, sports scores, horoscopes. The third feature of the MailBug ties in with the telephony strengths of BellSouth. If the household subscribes to BellSouth's CallerID service, the MailBug unit serves as a CallerID box and call log, which includes a voice-mail indicator for customers that have BellSouth voice-mail. By serving all these functions, the MailBug eliminates the clutter of multiple devices on the countertop.

The MailBug unit from BellSouth is manufactured by Landel Telecom and is a standard sized keyboard with a six-line text screen that will automatically check for new incoming mail every hour. The MailBug is available for $99 for the unit and $7.95 per month for the service. In addition, a one-time Global Service Provider set up fee of $2.00 applies for connectivity to the global Internet. For additional convenience, the MailBug's initial charge and monthly service can be billed on a customer's regular BellSouth bill. Also, the MailBug unit can be paid for in four monthly installments on the BellSouth bill.

BellSouth's entry into the Internet appliance/non-PC device category is a result of internal research that is supported by recent industry data. According to a June 2000 report by Forrester Research, (Many Devices, One Consumer) by 2003, consumers will spend 22% of their time online on non-PC devices and 30% of households will have two connected devices. In addition, by 2003 45% of online users will connect to the Internet via more than one device and overall spending on devices will increase 300% by 2002.

The new e-mail appliance from BellSouth, the MailBug E-mail device is available now in Atlanta, GA and Louisville, KY. For further information or to order the MailBug, customers can call toll-free 1-888-945-3857.

About BellSouth Corporation

BellSouth Corporation is an integrated communications services company headquartered in Atlanta, GA serving more than 41 million customers in the United States and 16 other countries. BellSouth, consistently recognized for customer satisfaction, provides residential, business and wholesale customers with integrated voice, video and data services to meet their communications needs. BellSouth is a Fortune 100 company with total revenues exceeding $26 billion.

About Cingular Wireless (a joint venture with SBC Communications)

Through Cingular Wireless, the nation's second largest wireless company, BellSouth provides innovative wireless voice and data services. Cingular Wireless serves 19 million subscribers and reaches 190 million potential customers with a full set of services, including interactive messaging in addition to attractive national rate plans and bundles of other communications services.

About Landel Telecom

Landel Telecom is a pioneer in the Internet Appliance market located in San Jose, CA. Details about the company and its products and services are available at 408-360-0480 or www.landel.com.