Netopia Introduces Hot Spot Solution for Small Business Owners; All-in-One Wi-Fi Service With a Small Monthly Fee, Maximizes Profits for Individual Retailers

Business Wire, June 28, 2004

EMERYVILLE, Calif. -- Netopia, Inc. (Nasdaq:NTPA), a market leader in broadband and Wi-Fi products and services, today introduced a flexible Hot Spot service designed for individual retailers and small business owners, such as coffee shops, gas and quick service stations, food service operators, dental offices and others. Netopia's new Hot Spot service allows individual businesses to deploy Wi-Fi services quickly, easily and inexpensively to generate additional revenue, improve customer loyalty and differentiate themselves from local competitors. The Hills Swim and Tennis Club in Oakland, Calif. is one of the first businesses to deploy the Netopia solution.

"Our club aims to provide its members with a recreational experience that is private, comfortable and convenient, but also state-of-the-art," said Ernesto A. Chamorro, general manager of The Hills Swim and Tennis Club. "We've been using the Netopia hot spot service for several months. A single hot spot covers our entire property -- it was really easy to set up and our members love it. Netopia also allows us to control Internet usage with 'Family Friendly Surfing,' which is critical for a family-oriented organization like ours."

Netopia's Hot Spot service for individual retailers is remotely supported and requires the purchase of a Netopia Hot Spot Starter Kit, which includes a Netopia Hot Spot Gateway with 3-D Reach(TM) technology, Netopia Hot Spot Access Cards, installation and activation guides, and venue marketing materials that help businesses promote their Wi-Fi services. Businesses can easily install Netopia hot spots, and pay just $40 per month for the Netopia Hot Spot service. Netopia's service allows individual retailers to set their own pricing for Wi-Fi services at levels consistent with local demand.

"Netopia's hot spot solution is perfect for small business owners -- a segment of the market which has been overlooked by other vendors in the space -- because it is so inexpensive, and easy to set up and use," said Aaron Vance, senior analyst for Synergy Research. "As public Wi-Fi access becomes more common among larger retail chains, it will be critically important for smaller businesses to offer similar services, and Netopia's hot spot offering is a perfect way for them to do so without breaking the bank."

Flexible Billing Options

Small businesses can determine the pricing of Wi-Fi access for users based on time of day, class of user and other factors. Netopia's solution provides businesses with the flexibility to design Wi-Fi business models that best fit their needs. With Netopia Hot Spot Access Cards, the business owner can either sell the access cards at the cash register or give them away for free as a loyalty or promotional reward. The disposable, one-time use access cards are printed with unique access codes that allow customers -- equipped with Wi-Fi capable laptops or PDAs -- to gain wireless Internet access for a specified period of time by simply entering the access code on the card. The Hot Spot Access Card approach is extremely simple and convenient for both the retailer and the end-user, since it eliminates the need for a credit card account. Usage models that require credit cards can slow down the adoption of public Wi-Fi, because consumers typically do not want to set up a monthly recurring account and feel uncomfortable providing credit card information for one-time use.

Netopia also provides promotional materials such as table tents and window decals for use within the retail location.

Family Friendly Surfing

To ensure that small businesses are not associated with inappropriate content on the Internet, Netopia's Hot Spot service features content controls and can be configured for family friendly surfing. Netopia's back-end servers apply content controls to filter millions of URL classifications that are updated on a daily basis by an independent rating service, and block access to specified categories including pornography and violence.

Netopia Hot Spot Gateways

Netopia's hot spot solution uses Netopia Hot Spot Gateways with built-in Wi-Fi access points and access controllers that constitute a single, low-cost platform. The Netopia Hot Spot Gateways utilize Netopia 3-D Reach technology for superior wireless range and indoor coverage and are a key component in the required Netopia Hot Spot Starter Kit. Business owners can select from two different starter kits: one kit includes the 8347W ADSL Hot Spot Gateway, and the other includes the 8387W Broadband Hot Spot Gateway, designed for customers with an existing DSL or cable modem. These gateways greatly simplify the deployment, installation, and management of hot spots and provide retailers with flexibility not available with other hot spot solutions.

Customized Merchandising and E-commerce Options

Netopia's Hot Spot service provides various e-commerce options that enable customized merchandising and branding opportunities for the retailer. For a one-time $200 fee and a small monthly fee, Netopia will create a Customized Hot Spot Home Page that can be edited by the retailer as often as needed. For example, if the local sandwich shop wants to feature its "soup of the day" on the hot spot home page and provide daily updates, it has the flexibility to do so. For additional fees, Netopia can build and host an additional multi-page Web site customized to the retailer's promotional needs. If the retailer wants to sell promotional wares, such as tee shirts, directly to customers, Netopia can provide a full-feature e-commerce store within the custom site.