FREENET GOES TOTALLY FREE April 19, 2000

In response to the creation of what it describes as a "new operating environment for free ISP's", freenet has announced it is offering totally unlimited Internet access to all of its customers as of today. Freenet, New Zealand's first free ISP is a fully owned subsidiary of Compass Communications Ltd and was launched in February of this year. It continues a success story that began when it met its annual target of 10,000 customers in just four weeks.

"We were the pioneers in this field and will continue to be", says Chief Executive Karim Hussona. "Our customer base now exceeds 20,000 of what we term "e-commerce ready Internet users" with our free coverage extending to 13 main centres around New Zealand. Palmerston North and New Plymouth joined the local calling network last week giving us the most extensive coverage of any free ISP in the country. Customers love the fact we are totally New Zealand owned and we are committed to making freenet a Kiwi success story."

"There has been no change to our plans to develop a local on-line, retail community which will be launched with a significant list of top-line New Zealand retailers in June", he says. "I still believe that a sound business model is going to be the key to on-going success in the free ISP market and we look forward to making on-line shopping a part of everyday life in New Zealand."

"We welcome the competition that our success has encouraged and hope that all New Zealanders will make the most of having free Internet access over the next few months. We all talk about the Internet being New Zealand's future - well the future is here, now and it's free."