AvTel's Addictive Media Group Unveils Internet And Multimedia Development Services; Todd Greene Appointed Vice President and General Manager of Addictive Media Group.

SANTA BARBARA, Calif.--(BUSINESS WIRE)--Jan. 5, 1999--AvTel Communications, Inc. (Nasdaq:AVCO) and its Addictive Media Group today announced the introduction of an array of services that Addictive Media will provide as a full-service multimedia and Internet development studio. Addictive Media is the result of the combination of AvTel's existing software development group with the interactive multimedia CD-ROM business of Digital Media International, Inc., which AvTel acquired in September 1998.

Among these offerings, AvTel announced the expanded capabilities of the group's proprietary authoring platform, X-PAT, to include the integration of the company's Internet and E-Commerce development tools. This package will enhance the Company's ability to develop linked multimedia CD-ROM products and Internet applications, as well as immersive applications that cross over the World Wide Web to Location-Based Entertainment (kiosks) -- enabling the development of an inter-networked environment from a consumer's home to the Internet to retail locations.

The company also announced today that it has appointed Todd Greene Vice President and General Manager of the Addictive Media Group. Most recently, Mr. Greene was an Executive Producer for interactive commercials at special effects studio Digital Domain creating multimedia and Internet applications for broadcast, cable/satellite and interactive television. He has also served as Vice President of marketing for Cloud 9 Interactive, a children's entertainment studio, as well as senior management and marketing positions at ICS Communications, Young & Rubicam subsidiaries and Omnicom subsidiaries.

"Todd has demonstrated an impressive scope of knowledge and skills in a number of industries and is well-suited for this leadership position," commented Anthony E. Papa, Chairman and CEO of AvTel Communications. "We expect that his vision and abilities will serve Addictive Media well.

"AvTel's broadened commitment to the Addictive Media group is relative to the growing demand for complex web-based networking solutions by businesses and the opportunity to develop bandwidth-savvy entertainment and edutainment services for publishers and distributors using our proprietary authoring platform, X-PAT," added Mr. Papa.

"Addictive Media combines a complete development solution for multimedia publishers, innovative Internet and e-commerce applications for advanced web development and rapid development of location-based entertainment for a multitude of audiences," said Todd Greene.

AvTel's Addictive Media Group creates proprietary development technology for multiple platforms, including hybrid CD-ROM, Internet, kiosk and Location-Based Entertainment (LBE) applications. The group and its predecessor, Digital Media, have created and produced innovative interactive CD-ROM software, including products based on popular licenses such as Universal's "The Land Before Time," as well as Location-Based Entertainment applications, including two attractions recently installed in a new LBE facility in Orlando, Florida, as well as Internet and website applications for a variety of consumer and corporate products and services. Most recently, the company's work on "Casper's Early Reader" for Sound Source Interactive was recognized by Parade Magazine as one of the best children's software titles for 1998. Current and previous clients include Panasonic, Sound Source Interactive, America Online, and Palladium Interactive, as well as one of the largest toy companies in the world and the world's largest theme park and animated motion picture producer.

AvTel Communications, Inc. is a provider of broadband network services integrating voice, data and video networking solutions for individuals and business customers. The Company markets and sells a broad range of telecommunications and advanced network services through independent value-added resellers and internal direct sales professionals. The Company targets mid-size corporations, small-office home-office professionals and select residential market segments. The Company is fully certified by the FCC and registered in all 48 contiguous states and Hawaii. In addition, the company holds billing agreements with all the Regional Bell Operating Companies, GTE and other independent telephone companies.

All statements in this press release other than statements of historical fact are forward-looking statements that involve substantial risks and uncertainties. Reference is made to the AvTel Annual Report on Form 10-K for the year ended December 31, 1997 and to the company's other reports filed with the Securities and Exchange Commission for a discussion of such risks and uncertainties and other factors that may have material effect on the company's business.