4th Network and Mobedshahi Hotel Group Partner to Equip Hotels with In-Room Internet Services Designed for the Digital Traveler; Agreement Marks Nation's First Live Hotel Deployments of In-Room PC and TV Access.

SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 4, 1997--The Fourth Communications Network (4th Network(TM)) today announced an exclusive, long-term agreement with the Mobedshahi Hotel Group (MHG) to provide its high-speed Internet Access Services via in-room PC and/or TV to all of the Group's current and future hotel properties.

Terms of the agreement were not disclosed.

MHG's properties include the Hyatt St. Claire in downtown San Jose, the Hyatt San Jose Airport and the Sherman House of San Francisco. "This agreement marks the first real deployment of high-speed Internet service to every room in the hotel through a dedicated PC," said Dr. Scott Lewis, president and CEO of 4th Network.

"It's taken nearly a million dollars and several years of technology development to make this possible, ensuring that this will be the most advanced business traveler Internet service available for years to come."

The St. Claire and San Jose Airport properties are two of only three Hyatt franchises worldwide. The Sherman House is one of the most highly rated small luxury properties in the world and the only Relais & Chateaux hotel in San Francisco. MHG expects its new 4th Network Internet and Interactive Services Agreement to result in the nation's first complete hotel deployment of in-room Internet on-PCs at the Hyatt San Jose Airport and in-room Internet on-TVs at downtown San Jose's Hyatt St. Claire Hotel.

The Airport Hyatt is currently undergoing a multi-million dollar renovation and is slated to be equipped with Internet access and services on a PC in every room. Guests will have high-speed Internet access through T1 connectivity on a dedicated in-room PC, supported by an in-room integrated printer/copier/fax machine.

"We expect this hotel to be a showcase and set a new standard for how the industry will serve the demands of the business traveler in the future," said Manou Mobedshahi, president of Mobedshahi Hotel Group. "This first phase of the MHG digital hotel project is underway now and will be formally launched early this Spring."

"Today's business travelers often find themselves disconnected from the communications and information sources they rely on when working in their own office. It is a fact that business travelers lose productivity on the road," said Dr. Scott Lewis of 4th Network.

"By integrating 4th Network's high bandwidth connectivity and Internet infrastructure with existing hotel systems, we're able to create a hotel Intranet dedicated to providing guests high-speed Internet access and custom applications to meet their on-the-road needs. In many cases, we help hotels provide services that surpass what's available in the best office environments."

The Mobedshahi Hotel Group (MHG) was founded in 1980 by Manou Mobedshahi, with the development of the world class Sherman House Hotel in San Francisco. The Group added downtown San Jose's Hotel St. Claire in 1991 and completed a major renovation, restoring the property to its original grandeur.

In 1993, the Hotel St. Claire became the very first Hyatt franchise. In 1996, MHG acquired a 474 room property near San Jose Airport and successfully negotiated its second Hyatt franchise, flagging the property as the San Jose Airport Hyatt Hotel. A major renovation of the property is currently underway and will include a unique interior and exterior design as well as computer systems and high-speed Internet access to each guest room.

Founded five years ago, the 4th Network has long term, exclusive contracts to provide high-speed Internet access and high-bandwidth video services for business and leisure travelers in hotels both in the United States and internationally. The firm has approximately 50,000 hotel rooms under contract in the United States. 4th Network is a privately held company with financial backing from leading private and corporate investors.

Corporate institutions include Mitsui & Co. Ltd., one of the world's largest trading companies and SOFTBANK, the world's largest publisher of computer related magazines and books and the world's largest producer of technology related trade shows and expositions, including COMDEX. SOFTBANK has made a variety of strategic

and Pointcast.  Additional information about the 4th Network can be
found at http://www.4thnet.com.
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CONTACT: The Weber Group

Georgia Dawson, 415/325-8300