Avaterra.com and M-WEB China Announce a Strategic Partnership to Offer a China-Specific E-Commerce Virtual World.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--Feb. 7, 2000

Today Avaterra.com, Inc. (OTCBB:AVAR), a leading provider of Internet-based business-to-business and business-to-consumer communities, and M-WEB China, a division of MIH Holdings Limited and a web portal in China, announce the signing of a strategic partnership to develop a China-specific e-commerce virtual world.

The VZone, termed VZChina will be offered to mweb.com.cn subscribers where they will enter the China-specific VZone as avatars (graphical representations of oneself). This VZone is expected to generate ongoing revenue through e-commerce transactions using Avaterra.com's unique virtual world and multi-media interface technology. M-WEB also plans to devote a sales force to sell virtual storefronts in VZChina to business-to-consumer oriented companies in China, as well as North American and European companies seeking to enter into the rapidly expanding Asian e-commerce market.

VZChina will utilize Avaterra.com's Media Interface that provides a wide range of web capabilities while touring and communicating as an avatar in a virtual world environment. The technology lends itself perfectly to e-commerce situations as visitors can share the shopping experience with other who may be anywhere in the world.

&uot;Users with access to the Internet in China tripled in 1999 and is expected to rise dramatically during the next decade, eventually surpassing North American Internet users,&uot; said David Andrews, Avaterra.com's CEO, &uot;It is an exciting opportunity for Avaterra.com to work with M-WEB and offer a Chinese VZone that will host an exceptionally interactive e-commerce solution for business owning real-estate in VZChina.&uot;

&uot;M-Web China welcomes the signing of this agreement, as our partnership with Avaterra.com positions us to participate in the rapid growth in Chinese Internet usage,&uot; adds Philip Meyer, COO of M-WEB China. &uot;With the implementation of this powerful community tool, M-WEB China will be setting new standards and sending a clear message that M-WEB is serious about utilizing innovative new content and technology products to capture as large a portion of the Chinese portal market as possible.&uot;

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)). 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 MIH Holdings, Limited

From its origins as the leading provider of pay-television services in South Africa, MIHH has grown to become a global player in interactive and pay-media software technology and a leading television platform provider in many international markets.

MIHH, listed on the Johannesburg Stock Exchange as a linked unit with M-Web, Africa's leading Internet company, holds as its most significant asset an investment of 59% in MIHL. MIHL was listed on NASDAQ and the Amsterdam Stock Exchange in April 1999.

Through MIHH, the company provides terrestrial analogue, digital satellite and other pay-television platform services to over 1.9 million households in more than 40 countries.

Note to Editors: 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.

All trademarks, trade names, registered trademarks, or registered trade names are property of their respective holders.