The service is available from Punch's Website, www.punchnetworks.com. Users can create up to 100 WebGroups and/or store up to 100mb of data for free until January 1, 2000, after which Punch will begin charging a nominal fee for the service. Details are available on Punch's Web site.

"With the release of this new version of Punch WebGroups, we are poised to experience significant growth in the emerging application service provider (ASP) marketplace," said Punch Networks' President and CEO. "More and more companies are looking for the competitive advantages and productivity gains achieved by outsourcing certain traditional IT functions. File storage, synchronization and collaboration is a natural outsourced service offering."

The Company first launched Punch WebGroups in May1999, and has since gathered valuable input from numerous users and partners and integrating their many requests and ideas into this newest version.

"There's no substitute for user feedback," continued the Punch's President. "We've learned a lot in the past few months and, without a doubt, our existing users and partners will be pleased with the changes and improvements. Market demand for all Web-based services is growing, and we are well positioned to take a leadership position."

Punch Networks has partnered with numerous other leading Internet sites to offer 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), and science (cos.com). The Program offers two different options to partners seeking to offer its Web-based file access, sharing and updating service to their customers. In the first option, partners can offer a version of WebGroups (customized to reflect their branding and identity), from their site, with Punch Networks providing the back-end hosting service and support. In the second option, partners can purchase the WebGroups server software, customize the interface to reflect their branding, and install and maintain it on their systems.

What's new in 2.0?

• Secure Sockets Layer (SSL) Encryption: The entire session is now protected by SSL encryption. Whether a user is logging in, uploading a file, or adding another user to the WebGroup, the transmission of data is encrypted.
• 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.

Punch Networks offers Punch WebGroups from its site as well as from numerous other leading Internet sites. The company offers co-branded versions of WebGroups through partner sites in various vertical industries, including legal, (serengetiUS.com), education (powerstudents.com), business research (intellifact.com), small business services (workz.com), and science (cos.com).

"We've got a number of partners in the queue waiting for the release of 2.0," said Punch's President. "In the coming weeks, more and more users will be able to experience WebGroups through our numerous partner sites."

The service will be free to existing and new users until January 1, 2000. At that time, all users will be permitted to create two WebGroups and up to 10mb of files stored on the Punch WebGroups server. Usage beyond either threshold will require users to subscribe to the Punch WebGroups service on either a monthly or yearly basis. Detailed pricing will be available from Punch Networks in advance.

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.