The new version will include Macintosh support, an integrated private Web disk drive, and the ability to upload multiple files at once, among other features. The Company will make available the final version of Punch WebGroups 2.0 from its Web site (www.punchnetworks.com) in mid-October.

"Since launching Punch WebGroups in April, we've had an outstanding response from our partners and users," said the president and CEO of Punch Networks. "We've taken their feedback as well as our own ideas for improvements, added key features and have made Punch WebGroups even easier to use. We'll unveil this new version in beta at Internet World, but we'll also let users try it for free from our Web site."

Punch WebGroups is a Web-based file storage and collaboration service that lets any Internet user store, share and update any file of any size on the Web using just their browser. Punch Networks offers Punch WebGroups from its site, but has also partnered with numerous other leading Internet sites to offer co-branded versions of WebGroups to their customers. The company has partnered with key sites in vertical industries, including education (powerstudents.com), business research (intellifact.com), small business services (workz.com), science (cos.com).

What's new in 2.0?
Punch WebGroups 2.0 includes an improved user interface with a number of new features, including:

• Macintosh support: With WebGroups 2.0, Macintosh users can now access the same rich document management features previously available only to Windows users. No download is necessary.
• Virtual Hard Drive: With the integrated Punch WebDrive, users now have a dedicated secure drive for personal and private file storage in addition to the shared drive that comes with their WebGroups account. The Punch WebDrive and WebGroups appear in the same interface, giving the user a private drive and a shared drive at the same time.
• Standard Mode: Users now have a choice upon login: use Punch WebGroups in "Standard" or "Advanced" mode. In Standard mode, users can access basic document management features such as audit trails, version tracking, user authorities, and change notification.
• Advanced mode: In addition to the features listed above, the user receives much richer functionality, including multi-file uploading, automatic updates to the user's hard drive, and uploading/downloading only changes between versions.

"There's been a lot of hype in recent weeks about the ability for a user to store a file on the Web. Not only can users do this simple task with WebGroups, they can also share and update any file with anyone else on the Web," said David Campbell, the founder and chairman of Punch Networks. "Web file storage is only the beginning, as we see it. Once people get used to storing files on the Web, they'll want more. Punch WebGroups goes beyond simple Web file storage to keep users and their files up-to-date."

About Punch Networks Corporation
Founded by David Campbell in 1995, Punch Networks develops software products, services and technologies that help people effectively manage changing digital information. The company's first service, Punch WebGroups, lets anyone store, share and automatically update their files using just their Web browser. The Company offers WebGroups as a hosted service to business partners and to companies as an outsourced service.

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