Alternet Systems Inc.: InMotion Web-Conferencing Over IP Product Launched; SchoolWeb Internet Management System Installed in Nebraska.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--March 2, 2004

The Company is pleased to announce the product launch of InMotion Web Conferencing. InMotion brings high quality, Internet delivered, video and audio communications to any desktop, even with a low-speed Internet connection. InMotion Web Conferencing enables significant cost-efficiencies for companies and organizations in training, customer support, employee conferencing and distance learning.

InMotion is a full-featured, hassle-free, web conferencing system that meets the needs of the both the education and corporate marketplace. This product strategically places Alternet Systems Inc. in one of the fastest growing segments of the global technology sector. According to the Radicati Group, a consulting and market research firm, the web conferencing industry is predicted to grow from $544 million in 2003 to $2.2 billion by 2007.

The Company is currently targeting the North American education market with SchoolWeb InMotion, to help meet the growing need of our customers for cost-effective web conferencing for school administrators, teachers and students.

The Company is also pleased to announce the installation of a SchoolWeb Internet management system in a major education facility in Nebraska, as the first stage of the Company's US product rollout. Company representatives are currently following up on interest generated from recent tradeshows in Florida and California.

On Behalf of the Board of Directors

ALTERNET SYSTEMS INC.

Michael Dearden, President

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the Company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.