FreeGate Teams With Major ISP to Provide Resellers aSimple, Low-Cost Internet Package Customized...

SUNNYVALE, Calif.--(BUSINESS WIRE)--June 2, 1998--Expanding what's available to smaller organizations that want a dedicated Internet presence, FreeGate Corporation today announced a reseller program that provides a turnkey Internet offering combining FreeGate's leading-edge all-in-one Internet

The new package integrates FreeGate's Multi-services Internet Gateway and UUNET's Burstable T1, frame relay and ISDN LAN services, allowing resellers to help smaller customers put more of their business on the Internet while benefiting from the cost and resource savings of an integrated hardware/access solution; simplified installation process; and comprehensive support services.

Available now, the package is the first of its kind to integrate an all-in-one Internet system -- router, firewall, Internet and intranet Web servers, virtual private networking (VPN) functionality and other services -- with Internet access, including a burstable T1 frame relay service that provides scalable, high-performance bandwidth on demand. The package also includes a free one-year extended software and hardware warranty on the FreeGate system, with support by UUNET and FreeGate.

Resellers will earn significant commissions from both UUNET and FreeGate for every integrated package sold. Commissions are based on service type, with resellers earning as much as $3,000 for a burstable T1-based solution.

A Simple Proposition with Excellent Economics for Resellers and Businesses

Jean Gastinel, FreeGate president and CEO, said, "The combination of UUNET's leading, world-class Internet services and FreeGate's technically superior all-in-one Internet systems gives resellers an opportunity to offer an unprecedented mix of products, access options and professional services that they can use to differentiate their services, lower costs, and significantly expand their business. We're pleased to be working closely with UUNET on this unique reseller program, and are thrilled by the overwhelming response to the program to date."

Customers Already Benefitting from FreeGate/UUNET Teamwork

Linda Speer, corporate controller at SAE Power, a Santa Clara, Calif., electronic components supplier and customer of FreeGate and UUNET, said, "With the FreeGate system and UUNET services, we not only linked our offices with secure corporate e-mail, but as a bonus we were able to open a Web site offering a new channel of information where customers get product and pricing information at any time on-line.

"In a single, compact package, the FreeGate system provided complete e-mail, Web and firewall services at half the cost of an e-mail system alone assembled from separate components. We've recently taken advantage of FreeGate's VPN software to launch an intranet linking employees, suppliers and customers in an information network -- each with specific access and authorization policies," Speer said.

Johnson & Dugan, a San Bruno, Calif., financial services firm with more than 300 small business clients, also uses a FreeGate unit to operate its e-mail system over a fractional T1 line provided by UUNET. Plans are underway at Johnson & Dugan to establish Web-based intranet services for clients based on the FreeGate/UUNET solution.

FreeGate is a leading supplier of all-in-one Internet systems being used by small and medium-size companies to expand their business via the Internet, and to provide secure and reliable connectivity for remote employees and branch offices, without adding onsite IT staff. The company began shipping its initial product, the FreeGate Multi-services Internet Gateway, in September 1997. Its award-winning products are sold through service providers and value-added resellers worldwide. Partners include UUNET Technologies, Pacific Bell, Hewlett-Packard, Micron CMS and Net One Systems of Japan. For more information, call (408) 617-1000, fax (408) 617-1010, e-mail info@freegate.com, or visit FreeGate's web site at http://www.freegate.com.

CONTACT: FreeGate Corporation

Laura Stiff

408/617-1036

lstiff@freegate.com

or

Ulevich & Orrange, Inc.

Matthew Quint, Janis Ulevich

650/329-1590

info@u-o.com