FirstWorld Communications Acquires Slip.Net; Purchaseof Leading San Francisco Bay Area ISP...

SAN DIEGO--(BUSINESS WIRE)--Jan. 7, 1999--FirstWorld Communications Inc., a switch-based integrated communications provider, announced today it is acquiring Slip.Net Inc. (www.slip.net) -- a leading San Francisco Bay area Internet Service Provider (ISP) -- and winner of the "Best ISP" and "Best

In the transaction, which the parties anticipate closing today, FirstWorld will acquire 100 percent of the outstanding capital stock of Slip.Net's parent company, Accelerated Information Inc., for US $10.45 million, plus 187,500 shares of FirstWorld Communications Inc. Class B Common Stock and the assumption of certain capital leases.

The acquisition will position FirstWorld solidly in the Internet services market with more than 20,000 San Francisco Bay area businesses and consumers representing approximately $5.4 million in 1998 revenue. The acquisition will also allow FirstWorld to enhance its existing Internet offerings, leveraging Slip.Net's established product line of dial-up and dedicated Internet access, Web hosting, Digital Subscriber Line (DSL), Virtual Private Network (VPN) and Internet training services.

"This acquisition will strengthen our position as an Internet and data-focused, integrated communications provider. By acquiring Slip.Net, FirstWorld will expand its penetration into Northern California and begin offering a complete range of telecommunications services to Bay area businesses," said Sheldon S. Ohringer, president and chief executive officer, FirstWorld Communications Inc. "This is the first acquisition of 1999 for FirstWorld and is key to our business strategy of providing high speed access and comprehensive communications solutions to our business customers. Slip.Net has a well-diversified customer base and a solid, proven history delivering Internet services in the competitive San Francisco Bay area which we will aggressively expand throughout 1999."

Recently, Slip.Net was voted "Best ISP" and "Best Web Hosting Company" in a reader's choice awards sponsored by Computer Currents, a leading computer trade magazine (www.currents.net). Founded in April 1994, Slip.Net was one of the first providers of Internet access to business customers in the San Francisco Bay area. Slip.Net was also one of the first providers to offer DSL technologies and has an estimated 180 DSL customers.