Avaterra.com, Inc. and NTT Software Complete the Integration of Avatar Technology With a Virtual World Teleconferencing Application.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 18, 2000

Today Avaterra.com, Inc. (OTCBB:AVAR), a leading provider of Internet-based communities, and NTT Software Corporation (NTT Software), announces the completion of the architectural integration phase of NTT Software's VoiceHive technology with Avaterra.com's avatar technology, furthering the corporations' shared vision of commercializing advanced interpersonal Internet-based applications.

VoiceHive is NTT Software's advanced telephone conferencing system that uses Computer Internet Telephony Integration (CITI) technology to add functionality to telephone conferencing. With the integration of avatars (customizable, personal portable identities) VoiceHive participants will visually confirm who is in the conference call, who is speaking, who is in "listen-only" mode, and allow participants to move smoothly between conference rooms.

Both companies have invested significant resources in the design and development of the teleconferencing system Avaterra.com plans to deliver to both the business and consumer markets in late Q1 2000. In the business market, it will serve as an advanced visual, collaborative web environment that promotes increased productivity between workgroups. In the consumer market, a similar version of the application will be offered to virtual world (VZones) members.

"Avaterra.com and NTT Software foresee a greater level of dependence on voice-based communication over the Internet. The ability to combine a dramatically higher level of visual interactivity while participating in VoiceHive conferencing from anywhere in the world is the basis on which the project is founded," said David Andrews, Avaterra.com CEO. "Both companies fully grasp the medium's potential, and look to successfully adapt to the quickly changing models of business and personal Internet communications."

About Avaterra.com, Inc.

Avaterra.com (OTCBB:AVAR) builds consumer and business-oriented interactive virtual worlds in the form of Virtual Zones(TM) ("VZones(TM)"). Users enter themed VZones as avatars (customized graphical representations of themselves) and express themselves by personalizing their appearance and communicating with other avatars through words, gestures and facial expressions.

The VZones technology enables a heightened level of personal expression and identity, interpersonal communications, and community that is unmatched on the Internet -- unsurpassed user visit durations are a testament to the appeal of avatars and the personal bonds established within these communities. Avaterra.com derives revenue from advertising, member fees, custom virtual community development and software co-licensing. For investor information, please call 888/845-5853, email [e-mail], or visit www.avaterra.com.

About NTT Software Corporation

NTT Software Corporation, a wholly-owned subsidiary of Nippon Telegraph and Telephone Corporation (NTT), was founded in 1985, and it is headquartered in Yokohama, Japan. NTT Software is a leading developer and provider of virtual communities in Japan and a pioneer in providing innovative distance learning systems that incorporate both telephone and Internet technologies. The company also develops and integrates core systems for NTT and the other NTT Group companies. These include network services and software solutions for large-scale and advanced telephone systems, a development platform for Web-based services, and software-based support solutions. In 1998 its revenues were in excess of $400 million. For further information, please visit the corporate Web site at: www.ntts.co.jp.

Certain statements made in the press release contain projections or other forward-looking statements. These projections and statements are based on the Company's current expectations and estimates as to prospective events and circumstances which may or may not be in the Company's control and as to which there can be no firm assurances given. These projections and forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. The Company cautions readers not to place undue reliance upon any such projections or forward-looking statements, which speak only as of the date made. The Company disclaims any obligation subsequently to revise forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

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