Company Registers More Than 100,000 Paid Users Within 30 Days of Announcing Free-to-Fee Transition

BOSTON (July 9, 2001) - In what one prominent industry observer is calling a landmark transition, Intranets.com went from being the largest free ASP in the world to the second largest subscription-based ASP in the world - in less than 30 days. Intranets.com, the world's largest intranet service provider, has registered more than 100,000 users and 6,000 corporations and small businesses since June 4th. "Intranets.com has achieved the fastest and most efficient conversion from a free service to a paid professional business service that I've seen in the ASP market," said Phil Wainewright, consulting analyst for ASPnews.com. "After just one month, Intranets.com has reached the second largest paid subscriber base among companies listed in the ASPnews Top 20." During the one-month conversion period, Intranets.com averaged more than 3,000 new members per day, peaking at 7,000 on June 26th. Intranets.com's total membership number of 103,000 makes is one of the largest ASPs operating today. "Demand for the paid version has exceeded our expectations," said Steve Crummey, CEO of Intranets.com. "Today's economic climate along with customer feedback made introducing a paid version an easy business decision for us. Once it took hold we decided to put all of our efforts behind delivering an enterprise quality paid offering. The number of conversions shows that we have chosen the right path to deliver the type of service that our users need in a business critical tool." Intranets.com first unveiled its fee-based intranet as the Professional Edition in April 2001. Introduced as an enhanced, advertisement-free alternative to the Standard Edition, the overwhelming demand for the Professional Edition prompted Intranets.com to dedicate its full development and support resources to the paid version. "We have been using Intranets.com since May of 2000 and have welcomed the progression that Intranets.com has made to a more robust, advertisement-free version," said Dennis O'Connor, Jr., vice president of Peter Arnold Associates, a Massachusetts based public relations firm. "We immediately liked the premier applications such as the task manager that the Professional Edition contained when Intranets.com introduced it. Choosing the paid version was an easy decision. Every day that goes by the intranet becomes more central to how we manage our business." Intranets.com offers its users a set of premier intranet applications, making it the optimal communication and collaboration solution available to small and medium-sized businesses and groups. Current features include a document sharing library, a contact database, a group calendar, discussion groups, a task manager, an expense report application, and 100MB of storage. SSL encryption and additional storage space are also available as a la carte options.

"The subscription-based model has also gained favor with our partners," said Rick Faulk, vice president of marketing at Intranets.com. "Companies are interested in partnering with someone who is going to affect their bottom line. Intranets.com is now able to provide partners with an advertisement free intranet service that provides them with a steady, predictable stream of revenue."

To register for Intranets.com's intranets, please visit www.intranets.com. Pricing starts at $19.95 per month for up to four members, plus $5.95 per month for each additional member.

About Intranets.com
Intranets.com is the world's leading provider of on-demand collaboration services for small businesses or departments and groups inside large organizations. The company serves more than 350,000 users across 10,000 companies worldwide and offers a secure, web-based collaboration suite to share critical business information quickly and easily at any time from anywhere. Privately held and profitable, Intranets.com is led by an experienced team of software industry professionals who are committed to providing a secure, customizable, easy-to-deploy intranet solution supported by world-class customer service. Intranets.com is a PC Magazine "Editor's Choice" winner and is rated one of the world's "Top 25" leading service providers by ASPNews. The company has also been ranked by the Boston Business Journal as one of the fastest growing private companies in Massachusetts for two consecutive years. For more information or to take a FREE 30-day test drive, visit http://www.intranets.com/pr, e-mail corpsales@intranets.com or call 888-932-2600 or 781-565-6000.

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