NETZERO
ANNOUNCES NEW "NETZERO PROFESSIONAL" PAY SERVICE;
KEEPS THE INTERNET FREE FOR EVERYONE
WESTLAKE VILLAGE, Calif., December 21, 2000 - NetZero, Inc.
(Nasdaq: NZRO), a leading provider of Internet access services and
targeted marketing solutions, announced today the launch of
"NetZero Professional," a new service plan aimed at
small business, professional and other members whose household
usage exceeds 40 hours in a single calendar month. Beginning in
January 2001, households and businesses that exceed the 40-hour
threshold will have the option to pay $9.95 to allow them
unlimited usage for the remainder of the calendar month.
NetZero believes the NetZero Professional service plan will impact
only a small percentage of its user base. Of the NetZero members
who used NetZero's free Internet access service throughout the
month of November 2000, approximately 12% spent more than 40 hours
online. This small percentage of users accounted for over 50% of
NetZero's telecommunications costs during November. NetZero's goal
is that all of its users, whether they have paid for additional
access time or not, continue to receive quality services and high
call-completion rates.
The plan applies only in the specific month in which a household
exceeds the 40 hours of free access. Accordingly, a household who
paid $9.95 in one month would not pay any fees in subsequent
months if their usage stays below the 40 hours that NetZero offers
free to all of its users. Also, if a household elects not to pay a
fee when they reach the 40 hour limit during a month, their
account will not be terminated and they can begin accessing the
service for free at the beginning of the next month.
"Our introduction of the NetZero Professional service is
designed to help balance the load between the typical recreational
consumer and the heavy user," said Mark R. Goldston, Chairman
and CEO of NetZero. "We have recently experienced phenomenal
member growth as many of our competitors have closed their doors,
and we remain committed to providing free Internet access to the
vast majority of consumers who use the Internet recreationally and
on a limited basis.
"A very small group of NetZero members - who we have
designated as 'professional users' - account for an inordinately
large percentage of our overall telecommunication costs,"
Goldston continued. "This new service plan is intended to
enable us to continue to provide unlimited Internet access to
these professional users without impacting our ability to provide
the same high-quality, free Internet access to the other NetZero
members who are online with us less than 40 hours per month."
About NetZero
NetZero, Inc. is a leading provider of targeted 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,
such as its zCast, 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, offering its access
services to more than 7 million registered users in more than
5,000 cities across North America. For more information, please
visit www.netzero.net. To
obtain a CD, please call 1-800-DEFENDER.
This
announcement may contain forward-looking statements that involve
risks and uncertainties. The potential risks and uncertainties
include, among others, NetZero's ability to scale its business and
to maintain the quality of its services; potential problems or
delays associated with new product introductions, including the
Professional service product; its unproven business model and
limited operating history; the company's ability to grow its user
base, generate advertising revenues and decrease
telecommunications costs; the effects of competition for users and
advertisers; the loss of key customers; technological problems or
developments; and governmental regulation. 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™, Defenders of the Free World™, the NetZero logo,
zCast™ and The ZeroPort™ are trademarks of NetZero, Inc. All
other names are trademarks and/or registered trademarks of their
respective owners.
# # #
Press Contact:
Peter Delgrosso
NetZero, Inc.
617/573-5135
pdelgrosso@corp.netzero.net
Liz Gengl
NetZero, Inc.
805/418-2076
egengl@corp.netzero.net
Investor Relations Contact:
Brent Zimmerman
NetZero, Inc.
805/418-2350
bzimmerman@corp.netzero.net
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