Strategic Alliance with Freeserve

Netcall PLC 13 April 2000 FREESERVE PLC ('FREESERVE') AND NETCALL PLC ('NETCALL') STRATEGIC ALLIANCE FREESERVE TO ACQUIRE SHAREHOLDING IN NETCALL NETCALL TO PURCHASE TELEPOST SHAREHOLDING FROM FREESERVE Freeserve, the UK's leading Internet portal, today announces that it has agreed to subscribe for 2.5 million new ordinary shares in NetCall, the leading Internet- controlled telephony business, for a total consideration of £4.5 million in cash, representing 8.6 per cent. of the issued share capital of NetCall as enlarged. As part of the same transaction, NetCall has agreed to purchase from Freeserve approximately 1.8 million shares in TelePost Inc., representing approximately 19.9% of the issued share capital of TelePost, the US based provider of unified messaging and collaboration services on Freeserve's portal, for £4.5 million in cash. Completion of this transaction is subject to the passing of a resolution at an Extraordinary General Meeting ('EGM') of NetCall to be held on or before 22nd May, 2000 to authorise the directors of NetCall to issue the new shares to Freeserve. A circular incorporating a notice of this EGM will be sent to NetCall shareholders shortly. Following the completion of this transaction Freeserve and NetCall intend to enter into an alliance to enable NetCall to integrate its various business solutions into Freeserve's existing online product range. These include the Business Portal and Store Builder Solution, Alerts Services and Personal Web Page Building Solution. NetCall will also offer Freeserve partners the ability to integrate NetCall solutions into their commercial offerings. The alliance will involve Freeserve working with NetCall to offer its interactive HyperPhone Linktm technology to Freeserve's existing 1.9 million registered members and also to introduce it to Freeserve's business partners in the areas of classified advertising, auctions, recruitment, estate agency and online car sales. HyperPhone Link and other NetCall technologies in addition to TelePost's conferencing and presentation services will also feature in Freeserve's Internet portal aimed at owners, managers and employees of small businesses which Freeserve is developing with Barclays Plc in a recently announced joint venture. NetCall will also work with TelePost on bi-lateral distribution arrangements in the UK, Europe and North America using platforms and networks already deployed in the US, UK and Europe by TelePost. The distribution partners accessible through TelePost connections gives NetCall access to leading companies in the US and Europe. Current TelePost distributors include: Office Depot, Hello Direct, Compaq Computer Corp., Bank of America, EuroTelecom Connect, RSL.com, NETnet and GTS. Freeserve's share of the issued share capital of TelePost will be reduced from 53.4 per cent. to 33.4 per cent. following this transaction. Including the warrants attached to a loan note investment in TelePost, Freeserve will maintain a 39.5 per cent. interest in the fully diluted share capital of TelePost. TelePost made a loss before tax of $20.8m for the year ended June 1999. As at June 30, 1999 TelePost's net assets were $14.5m. John Pluthero, Chief Executive Officer of Freeserve commented: 'This is a three-way-win for Freeserve, NetCall and TelePost. The product range and services we can offer to our customers, and the complementary technology and distribution that TelePost and NetCall have, gives each of us the opportunity to create significant value in our businesses. Web-enabled communications services are expected to see exponential growth and a strategic relationship cemented by an equity interest in both NetCall and TelePost puts Freeserve in a powerful position to exploit this throughout Europe, the UK and US.' Jeffrey Rubins, Chairman of NetCall, commented: 'This alliance with Freeserve is a major strategic step for NetCall. We feel our unique product range and diverse Internet business solutions packages will greatly enhance Freeserve's overall business proposition. By the same token, these new relationships with Freeserve and TelePost will allow NetCall to roll out its suite of services throughout the UK, Europe and US, at a much higher rate than previously would have been possible.' Bruce Runyan, President & Chief Operating Officer of TelePost, commented: 'This powerful alliance of consumer and business web- enabled telephony solutions is extremely beneficial for TelePost. TelePost and NetCall's strongly complementary product sets enable us to leverage our alternative distribution channels more effectively and is a direct route to extending our geographical reach.' Enquiries: Freeserve Citigate Dewe Rogerson Julian Walker or Patrick Toyne-Sewell Tel: 020 7638 9571 Paul Barker Investor relations Tel: 01442 355 764 Stephen Pang Public relations Tel: 01442 882 530 NetCall College Hill Nicola Weiner or Archie Berens Tel: 020 7457 2020 Jeffrey Rubins Chairman Tel: 01480 495 300 David Rothschild Chief Executive Tel: 01480 495 300 TelePost Frank Teruel Chief Financial Officer Tel: +1 408 355 7140 & Board Member About Freeserve Freeserve is the UK's leading Internet portal with an integrated offering of UK-focused content, e-commerce services and free Internet access. At 12 March 2000, Freeserve had 1.9 million active registered accounts and 162.8 million page impressions in February 2000. Freeserve was launched in September 1998 as part of Dixons, Europe's leading consumer electronics retailer. Freeserve distributes its access software through Dixons' network of over 1,000 Dixons, Currys, PC World, The Link and @Jakarta stores. About NetCall NetCall is a pioneer in the field of Internet-controlled telephony, the area of e-commerce that turns web browsing into profit. Since 1996, NetCall has been developing Hyperphone Link technology, one of the most effective interactive tools available, putting the customer in control and creating a whole new dimension to commercial business models. Hyperphone link technology can be easily installed with little hardware or software expertise. NetCall can generate telephone calls from a webscreen, an e-mail, a digital TV control, a data feed or from any public phone network. NetCall's applications are low cost, flexible and designed to integrate easily within customers existing telephony and information systems. In addition to established products, Netcall now offers WAP enabled audio conferencing and Hotdesk - a real-time screen interaction between a browser and call centres. NetCall offers the business community the combined feature of not only utilising telephonic expertise but also harnesses one of the fastest growing communication advancements of recent times - The Internet. About TelePost TelePost is a leading provider of web-based communications solutions directed at individuals and businesses. TelePost partners with telecommunication companies, Internet Service Providers (ISPs), and other communication providers to market a comprehensive suite of communication services to this market. The TelePost suite of services addresses a large spectrum of communications needs from unified messaging where all electronic and voice communication are unified into one email in-box, to cutting edge dynamic conferencing and presentation solutions which allow businesses to use the power of the Internet to manage their conferencing and presentation needs. Because TelePost offers communications solutions as a managed service, its customers don't have to purchase any additional infrastructure.

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