The co-branded service, called WebGroups, allows users to instantly store, share and update files using just their browser. Visitors can sign up for the free service on the Money & Investing, Education and Computer & Internet channels on www.excite.com, or go directly to http://punch3.excite.com.

While the Internet has made viewing and interacting with information, pictures, video and audio easier than ever, it is still relatively cumbersome to share actual files, such as word processing documents, spreadsheets and graphics via the Web. As a result, people still use email or other manual methods of sharing files, such as saving to disk or faxing. These solutions are piecemeal at best. WebGroups is an easy, secure and fast way for even novice computer users to instantly publish files to the Web and share them with their colleagues and friends.

"At one time or another, we've all experienced the frustrations of trying to share files with others," said Dan Campi, president and CEO of Punch Networks. "Our product makes file sharing easy by automating many of the associated tasks such as version tracking, edit control, change notification and audit trails. With WebGroups, all you need is a browser to have anytime, anywhere access to your updated files. Even better, you can share them with others."

"Web-based file storage and sharing is a natural extension of our commitment to providing easy to use, browser-based applications that enable our users to communicate more effectively with friends, family and colleagues," said David Sze, Vice President, Strategy of Excite. "The addition of Punch WebGroups is an excellent complement to our online communication services, including calendaring (Excite Planner), email (Excite Mail), and communicating (Excite Communities)."

A WebGroup is a private page on a secure Web site in which collections of users can securely store files they wish to share using just their browser. Any time a user changes a document and uploads it to the WebGroup, the system notifies the other members of that WebGroup via email that the document has changed. The other members can then come to the site, and download the new version of the file directly to their machine, automatically updating the existing version.

Importantly, Excite WebGroups uploads and downloads only the information that changes between versions of a document, so updates occur quickly. The site is password-protected and files are encrypted on the server to ensure security. Because the service is Web-based, users can access their files from any Internet-enabled machine.

"To have an Internet giant like Excite offer our service to its customers is an incredible validation of our vision -- that someday everyone will store and share files via the Internet," said Dan Campi, president of Punch Networks. "Our alliance with Excite will help us with the early acquisition and retention of customers, which is critical for the long-term success of any Internet product or service."

About Punch Networks Corporation
Punch Networks develops software products and technologies that help people effectively manage changing digital information. The company's first product, Punch WebGroups, is a Web-based solution that provides users with an easier and more secure way to share files and collaborate with people inside and outside of their organization via the Internet. The Company will sell an Enterprise version of Punch WebGroups, shipping in June, through a network of Value Added Resellers.

For more information, visit the Punch Networks website at www.punchnetworks.com, email info@punchnetworks.com, or call (206) 343-7661.