Into Networks Announces $36.6 Million Financing With Leading Broadband Service Providers

Business Wire, June 19, 2000

Business/Technology Editors

CAMBRIDGE, Mass.--(BUSINESS WIRE)--June 19, 2000

Strategic Private Placement Provides Funding and Global

Distribution Agreements for Firm's Rapidly Expanding

Broadband Content Delivery Platform

Into Networks, the pioneer and leader in delivering software-on-demand over broadband networks, today announced the company has completed a $36.6 million strategic private equity financing with market-leading distribution partners. Investors in the round included Cox Communications (NYSE:COX), UK-based NTL Incorporated (NASDAQ and EASDAQ: NTLI), UnitedGlobalCom (NASDAQ: UCOMA), Adelphia Communications (Nasdaq: ADLAC) and Morgan Stanley Dean Witter (NYSE: MWD). These companies join previous technology, distribution, and financial investors, including Cisco Systems, Intel, Motorola, MediaOne/AT&T, Inktomi, Fidelity Ventures, Venrock Partners, IDA Singapore, National Computer Board of Singapore, Lauder Partners and YAS Broadband Ventures in sponsoring the company.

Into Networks' content delivery platform is unique in its ability to provide broadband subscribers with click-and-play access to interactive CD-ROM titles without requiring time-consuming downloads or the hassles of installing software. Into Networks achieves this performance by streaming software to users' desktops from a highly distributed network of servers located in the last mile of broadband networks. This content network introduces a new business model for software distribution, allowing users to try titles for free before they purchase, rent single titles for a few days or subscribe to channels of content on a monthly basis. This creates an exciting new rich content experience for users, while increasing revenues and strengthening brand awareness and customer loyalty for software publishers and broadband service providers.

"The future of broadband is upon us. Into Networks has cracked the code for delivery of easy-to-use streaming software, creating yet another revenue opportunity for the broadband industry," said John Gregg, chief financial officer of NTL. "We are very excited to work with them to introduce this service to our 3.8 million cable subscribers in the United Kingdom, Ireland, Switzerland and France." Gregg has joined the Into Networks board of directors following the close of the private placement.

"Cox' commitment to Into Networks is our way of supporting the development of next-generation services that leverage the broadband infrastructure," said David Woodrow, executive vice president, business development of Cox Communications. A representative from Cox Communications will also be assuming a seat on the Into Networks board of directors.

"This round solidifies our leadership position by adding best-of-breed investors in the distribution space. Cox and Adelphia are two of the top cable operators in the U.S. and NTL is the largest cable broadband provider in the British Isles and Switzerland. UnitedGlobalCom passes over 18 million homes in 23 countries with such subsidiaries as UPC, Austar United, VTR Global Com and Chello," stated Vincent Grosso, chief executive officer of Into Networks. "These relationships are extremely important to us and to broadband customers around the world, as we deploy our content delivery platform and server network through last-mile partnerships with local service providers."

Into Networks' content delivery platform is currently being expanded through cable and DSL partners in North America and Asia. In December, the company announced a national deployment agreement with Road Runner, whose cable partners include MediaOne and Time-Warner. With initial deployments planned with Cox and Adelphia this summer and continued work with Excite@Home, Comcast, U S WEST and NorthPoint, among others, Into Networks is proceeding with its aggressive rollout plan. In conjunction with the company's strategic private placement, Into Networks will further expand its server network in new markets around the world. The financing will enable the company to grow its operations, rapidly deploy content servers to expand the software-on-demand platform, and launch new marketing for customer acquisition.

About Cox Communications

Cox Communications serves approximately 6 million customers nationwide, making it the nation's fifth largest cable television company. A full-service provider of telecommunications products, Cox offers an array of services, including Cox Cable; local and long distance telephone services under the Cox Digital Telephone brand; high-speed Internet access under the brands Cox@Home, Road Runner and Cox Express; advanced digital video programming services under the Cox Digital Cable brand; and commercial voice and data services via Cox Business Services. Cox is an investor in telecommunications companies including Sprint PCS and Excite@Home, as well as programming networks including Discovery Channel, The Learning Channel, Outdoor Life and Speedvision. More information about Cox Communications can be accessed on the Internet at www.cox.com.