Launched in October 1998, NetZero is a new Internet service that provides consumers with free and easy access to the Internet while offering advertisers a highly effective way to target those users.

NetZero provides consumers with unlimited Internet access, e-mail and navigational tools to enhance their online experience: all for free. For advertisers, NetZero’s service offers a powerful online direct marketing tool with features and functionality that have distinct advantages over traditional forms of advertising.

A core feature of NetZero is The ZeroPort a small window displayed on the users' computer screens while they are online. The ZeroPort can be moved to any point on the computer screen but cannot be closed so The ZeroPort is always visible regardless of where a user travels on the Web. This enables advertisers to display messages the entire time the user is online.

Subscribers to NetZero provide basic demographic and geographic information along with data on their hobbies and interests. This information enables NetZero to build a personal profile that is unique to those users and to customize the information they see within our advertising window.

On February 10, 1999, NetZero secured a $11.6 million second round financing from three leading venture capital firms, in a strong endorsement of a business model that has attracted more than 40 national advertisers and 300,000 subscribers in just three months.

Following a business model similar to network television and radio, NetZero offers subscribers free Internet dial-up and e-mail services, underwritten by on-screen advertising, e commerce sponsorships and other merchandising opportunities. Since its launch in late October, more than 300,000 subscribers have signed on to the service, making NetZero the fastest growing Internet access provider in history.

With advertisers that include Nissan, BellSouth, eBay, NextCard VISA and N2K's Music Blvd., the company has consistently exceeded advertising revenue projections and currently is 100 percent sold out. December represented a 100 percent increase in revenue over the previous month. NetZero is now delivering more than 300 million page views per month, placing it among the top 16 sites by impressions worldwide, according to figures from NetRatings.

On June 30, 1999, NetZero announced they had signed a bundling agreement with Compaq Computer, the leading manufacturer of personal computers, to include NetZero's free Internet access service with Compaq's new Presario models. NetZero also announced that in May it completed a $33 million private preferred stock financing, including investment from Compaq.

"We are pleased to have Compaq as a business partner and investor," said Mark Goldston, Chairman and CEO, NetZero, Inc. "We believe that offering NetZero's free Internet access with the Presario computer line will enhance the value for Compaq's consumers.

"Our goal is to consistently improve our service and provide value to our subscribers," Goldston said. "By partnering with Compaq, we're not only able to make free Internet access available to more consumers, but enhance our service offerings to our entire subscriber base."

On September 24, 1999, NetZero announced today the pricing of an initial public offering of 10 million shares of its common stock, all of which are being issued and sold by the company, at an initial public offering price of $16 per share. In addition, the company has granted the underwriters an option to purchase up to an additional 1.5 million shares of common stock from NetZero. The common stock will trade on the NASDAQ National Market under the symbol "NZRO." The offering is being made through an underwriting group managed by Goldman Sachs & Co. and other underwriters.

NetZero, Inc. is pioneering a new Internet service model that provides consumers with free access to the Internet while offering online advertisers a highly effective way to target those users. NetZero offers consumer’s free and unlimited Internet access as well as free email and navigational tools. For advertisers, the service offers a powerful online direct marketing tool with features and functionality that have distinct advantages over traditional forms of online advertising. Between NetZero's October 1998 launch and August 31, 1999, approximately 1.68 million users registered for the service. NetZero's services are offered in over 1,600 cities nationwide.