NetZero Signs Letter of Intent to Acquire Certain Assets of Freeinternet.com; Move Comes as Freeinternet.com Files For Chapter 11 Bankruptcy Protection

Business Wire, Oct 6, 2000

Business Editors

WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Oct. 6, 2000

NetZero, Inc. (Nasdaq:NZRO), a leading provider of advertising- and commerce-supported Internet access, today announced that it has signed a non-binding letter of intent to acquire certain assets of FreeI Networks, Inc., a national provider of free Internet access. FreeI Networks, Inc., which is also known as Freeinternet.com, today filed for protection under Chapter 11 of the United States Bankruptcy Code. The terms of the proposed transaction were not disclosed. The closing of the transaction is subject to a number of closing conditions, including the execution of definitive agreements and approval of the transaction by the bankruptcy court.

One goal of the transaction is to ensure Freeinternet.com users experience no interruptions in service. It is expected that users will be referred to NetZero's service, and will be able to keep their current email address.

Freeinternet.com launched service in December 1998 in the Seattle metropolitan area and expanded to five major metropolitan areas in May 1999. In October 1999, the company launched service in all 50 states and currently serves users in cities throughout North America.

"Our intent is to provide maximum continuity for Freeinternet.com users. NetZero intends to help Freeinternet.com users transition as smoothly as possible so they can continue to enjoy the benefits of free Internet access and e-mail," said Mark R. Goldston, Chairman and CEO, NetZero.

About NetZero, Inc.

NetZero, Inc. 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 over 5 million registered users in more than 4,000 cities across North America. For more information, please visit www.netzero.net. To obtain a CD, please call 800/DEFENDER.

This announcement may contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results predicted. The potential risks and uncertainties include, among others, the risk that the proposed transaction will not be consummated; that the transaction, even if consummated, will not provide NetZero with the expected benefits; that Freeinternet.com users will not experience service interruptions or will have access to the NetZero service; and NetZero's ability to integrate the proposed acquisition. 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 Analysis of Financial Condition and Results of Operations" and "Risk Factors." NetZero(R), Defenders of the Free World(TM), the NetZero(R) logo, zCast(TM), NZTV(TM), CyberTarget(TM) and The ZeroPort(TM) are trademarks of NetZero, Inc. All other names are trademarks and/or registered trademarks of their respective owners.