Activeworlds.com Completes Phase 1 of Ascm 3D Internet Shopping Malls.

Business Editors

NEWBURYPORT, Mass.--(BUSINESS WIRE)--June 6, 2000

Activeworlds.com (NASDAQ: AWLD), the premier developer of three-dimensional interactive software and communities on the Internet, today announced that it had successfully completed phase I of its development work pursuant to its contract with Australian-based internet shopping mall developer, Advanced Shopping Centre Management Pty Limited ("ASCM"). Of the $1.5 million contract value, revenues attributable to Activeworlds' completion of Phase I, in the amount of $250,000, will be recognized in the quarter ending June 30, 2000

Activeworlds' 3D virtual reality technology is recognized as one of the most advanced in the world, and will be utilized in the ASCM Virtual Mall to recreate both the shopping malls and individuals in a 3D world. Shoppers will be able to walk around in virtual stores, view and manipulate objects in 3D and even talk to live store clerks online. Shoppers will be able to make purchases from within the 3D mall and Activeworlds.com will be entitled to a percentage of the gross revenues generated by the malls.

The contract calls for the Virtual Mall project to be completed by September 1, 2000 just in time for the 2000 Christmas buying season. These malls provide retailers a cost-effective entry onto the Internet and more importantly bring to life the real world shopping experience. Activeworlds' technology will enable store owners to rotate and change products on store shelves instantly and conveniently with the click of a button without having to rebuild the entire 3D Virtual world. "Activeworlds offers a solution which no other internet 3D platform can provide at this time", said Rick Noll, Activeworlds.com CEO. "The ability to rotate products and change merchandise in real time without having to rebuild the entire 3D environment is a huge technological leap. None of our competitors offer a platform like this. A Virtual Store owner can save thousands of dollars in maintenance fees alone."

"Today's e-commerce solutions do not offer the consumer the ability to communicate in real time with the vendor. Activeworlds enhanced communication and 3D graphic system permits the consumer to ask questions of a live person before buying the product," stated Activeworlds.com Chairman JP McCormick. "Salespeople are beneficial to the consumer and help make the sale happen. We expect overall sales to be greater with a virtual shopping mall experience than on the traditional e-commerce sites because VR Shopping Malls can offer live salesperson assistance in addition to enhanced 3D graphics."

ASCM representatives will be visiting Activeworlds corporate headquarters later on this month to view the progress of phase II..

About Activeworlds.com, Inc. (NASDAQ: AWLD)

(http://www.activeworlds.com)

Activeworlds.com, Inc. is an information technology company dedicated to providing ASP delivery systems for the 3D Internet. Its communications enhancement technology uses techniques initially developed for virtual reality environments for the Internet, whether it be the website author or application provider. Activeworlds.com, Inc. currently has a worldwide user base of over 1,000,000 users on the Universe server it operates, which receives over 1 million impressions per day. Companies such as Boeing, NASA, The United Nations, Philips Multimedia, the US Government, and many more are currently using Active Worlds(TM) technology.

About Advanced Shopping Centre Management Pty Limited ("ASCM")

ASCM is an amalgamation of two Australian consulting companies specializing in brick and mortar retailers, retail and commercial property management and wholesale distribution channels. This formation has allowed for the complete investigation of the retail industry and, in particular, the retail distribution channels on the Internet, thus determining a logical direction to retailing and its future. The company provides fully integrated Internet retail solutions that are cost-effective, user friendly and designed to assist both real world retailers and retail property developers alike. The emphasis of these assignments has been on the dealing with and the understanding of the needs of the shopping center industry and retailing as a whole. The directors of ASCM have had a total of more than 50 years experience in retail and property development consulting.

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