NetZero Taps Into Internet Appliance Market With Oracle's New Internet Computer; Leading Free Internet Provider to Be Bundled With Low-Cost NICs

Business Wire, July 13, 2000

Business Editors/Technology Writers

WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--July 13, 2000

NetZero (Nasdaq:NZRO), a leading provider of advertising and commerce-supported Internet access, today announced that it will be packaged with the New Internet Computer, or NIC.

NICs, priced at $199, are simple, affordable Internet appliances that give users quick and easy e-mail and Web access. NetZero's Linux-based Z3 software will provide NIC customers with free lifetime Internet access and will be bundled with the NIC for a minimum 1-year period.

The new NIC appliances were recently announced by The New Internet Co., a Larry Ellison-owned Oracle (Nasdaq:ORCL) spin off, and are designed to run on open-source, Linux-based software. The Linux version of NetZero's Z3 software delivers near-identical functionality to its Windows counterpart and was created specifically to run on the NIC appliance.

Industry analysts predict that the Information Appliance segment will grow considerably faster than the PC market. International Data Corp. projects that by 2004, the segment worldwide will be valued at $17.8 billion, with an installed base of 89 million units.

"The Internet appliance market is rapidly growing because consumers want easy, affordable access," said Mark R. Goldston, chairman and chief executive officer, NetZero.

"Currently, most Internet appliance manufacturers charge monthly access fees. Our partnership with NIC leverages our Internet software and service expertise and demonstrates our commitment to offer free access to customers who own any device that connects to the Web -- whether it's a PC or a new Internet appliance, such as the NIC."

"There's no question that NetZero is an ideal partner for us," said Gina Smith, CEO of NIC. "NIC and NetZero are uniformly dedicated to providing users with both high quality and high value. NetZero plus NIC will provide an irresistible combination to customers because the Z3 software, combined with our product, offers unsurpassed value."

About The NIC Co.

Founded in January 2000, The New Internet Computer Co. builds the New Internet Computer (NIC), bringing fast, affordable and functional Internet access to consumers, schools and businesses without the cost or complexity of a PC. Starting at $199, the NIC offers plug-and-play e-mail and Internet access. More information can be obtained by visiting www.thinknic.com.

About NetZero

NetZero is a leading provider of advertising and commerce-supported Internet access offering a broad range of interactive marketing, research and measurement solutions. NetZero offers consumers free access to the Internet, free e-mail and customizable navigation tools that provide "speed dial" to key sites on the Internet.

Through proprietary technologies, NetZero offers advertisers unique targeting capabilities through numerous online advertising and sponsorship channels.

The company's CyberTarget division offers marketers and advertisers mass-scale, online market research and measurement services. NetZero is a Cisco Powered Network, providing its access services to more than 4 million registered users in 3,000 cities across the United States. More information about the company is available at http://www.netzero.net.

This announcement may contain forward-looking statements that involve risks and uncertainties. The potential risks and uncertainties include, among others; NetZero's unproven model and limited operating history; the company's ability to grow its user base, generate advertising revenues and decrease telecommunications costs; the effects of competition for users and advertisers; the loss of key customers; technological problems or developments; and governmental regulation. More information about potential factors that could affect the company's business and financial results is included in the company's Form 10-Q and other filings with the Securities and Exchange commission (http://www.sec.gov), including (without limitation) information under the captions "Management's Discussion and of Financial Condition and Results of Operations" and "Risk Factors."

Note to editors: NetZero(TM) Defenders of the Free World, the NetZero(TM) logo, zcast(TM), CyberTarget(TM), NZT(TM) and The ZeroPort(TM) are trademarks of NetZero Inc. All other names are trademarks and/or registered trademarks of their respective owners.