Avaterra.com and Internolix AG Sign Agreement to Integrate Virtual World Technology With E-commerce Solution Products.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--March 20, 2000

Avaterra.com Also Secures Distribution Rights

for Applications in North America and the UK

Avaterra.com, Inc. (OTCBB:AVAR), a leading provider of Internet-based virtual world communities, announces an agreement with Internolix AG, Germany's second largest provider of online e-commerce systems, to integrate Avaterra.com's virtual world technology and new Media Interface with Internolix's e-commerce solution product lines.

In addition to this product agreement, Avaterra.com has secured distribution rights from Internolix for product distribution in the North American and UK markets.

"Internolix has been looking for advanced 'storefront' technologies for some time, and Avaterra.com has exactly what we are looking for. We believe that the combination of our products will provide us with a significant competitive edge in the European and North American markets," said Klaus Peter Stoll, Internolix's Vice President.

"Strategic partnerships with companies like Avaterra.com will speed up the market leadership of Internolix products in the USA. The Internolix product and sales strategy is aimed at indirect marketing -- therefore, quicker growth and responsiveness to customers is secured. To reach this aim, up to 800 sales partners will be set up in the USA. The US Headquarters of Internolix Corporation is being established in the San Francisco Bay area."

The companies have agreed to integrate the Internolix suite of e-commerce software applications with Avaterra.com's multi-media and virtual world environments. Avaterra.com will execute the interface design that will furnish Internolix's e-commerce backend with virtual and multi-media "storefronts."

Avaterra.com's new Media Interface combines up to four Internet applications with Avaterra.com's proprietary virtual world technology. Applications can include streaming audio and video, electronic commerce, avatar virtual worlds, and any other web-enabled applications.

As an additional part of the agreement, Avaterra.com becomes an official distributor of Internolix products in North America (USA and Canada) and the United Kingdom, providing companies in these markets a complete suite of interactive e-commerce applications intended to enhance consumer interaction with online product offerings.

"With Internolix's e-commerce store application family adding a vital element to our new Media Interface, this agreement establishes Avaterra.com as a key provider of virtual store technology," said David Andrews, Avaterra.com CEO.

About Avaterra.com, Inc.

Avaterra.com (AVAR-OTC/BB) builds consumer and business-oriented interactive virtual worlds in the form of Virtual Zones(TM) ("VZones(TM)"). Consumers 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 communication, 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 Internolix AG.

INTERNOLIX AG with its head office in Limburg, Germany, is a leader in "standardized" e-Commerce software, including an extensive array of easily integrated modules that satisfy the needs of sell-side or shop management on the Internet. Internolix product lines and modules can evolve with customers from small and simple shops to the very largest and fully sophisticated selling environments, including B2B solutions.

The company grew out of an alliance of several IT development houses directed by Dr. Luigi Carlo De Micco, Internolix's President. INTERNOLIX provides a set of standardized pure-Java modules for the steadily changing commercial software environment. The INTERNOLIX product line is designed to be open and compliant with all hardware and software platforms, in order to serve whatever inventory and database environments the shop-owner needs to establish.

This approach significantly reduces both the cost of software and the cost of effective integration, and assures much faster time to implementation than competing sell-side solutions. Internolix will go public on the German Neuer Markt in the very near future.

For more information on Internolix, please contact Klaus-Peter Stoll ([e-mail]) or Thomas Schubert ([e-mail]).

Certain statements made in the press release contain forward-looking statements. These 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 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 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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