Banyan Worldwide Acquires ePresence, Inc.; Web Consulting and Design Firm Reinforces Banyan Worldwide's Position as a Leading E-Business Services Provider.

Business/Technology Editors

WESTBORO, Mass.--(BUSINESS WIRE)--Jan. 10, 2000

Banyan Worldwide (NASDAQ: BNYN) today announced that it has acquired ePresence, Inc., a privately held e-business services company that specializes in web design, development and integration. Consistent with Banyan Worldwide's strategy to grow and enhance the value of its e-services business, the acquisition complements the company's e-business infrastructure service offerings by adding ePresence's web-centric solution delivery capability.

The acquisition was completed as a cash and common stock transaction valued at approximately $13.75 million and will be accounted for as a purchase. Based in Red Bank, New Jersey, ePresence currently employs 45 services professionals and is expected to report revenue of approximately $5 million in 1999. This represents an increase of more than 60 percent over 1998.

"The acquisition of ePresence reinforces our strategy to expand the breadth of our services business by delivering solutions that span from web presence through the infrastructure," said Bill Ferry, chairman and chief executive officer of Banyan Worldwide. "ePresence's web consulting and interactive design expertise enhances our ability to address the growing demand for personalized, high performance, web-based customer solutions."

The acquisition of ePresence underscores Banyan Worldwide's business focus to capitalize on the opportunities afforded by the Internet and e-business services markets. According to a 1999 International Data Corporation report, "The worldwide demand for Internet services was $7.8 billion in 1998 and is expected to grow to $78.5 billion by the year 2003. This represents a five-year compound annual growth rate (CAGR) of 59% for the period 1998-2003."

ePresence will join Banyan Worldwide's Services Division headed by Bob Burke, which has experienced substantial growth. ePresence plans to leverage the services infrastructure, customer relationships and skill base of Banyan Worldwide to enhance its position in the e-business services market.

"We are very excited about expanding our growth potential by leveraging the leadership, resources and e-business infrastructure expertise of Banyan Worldwide," said J. Greg Phelan, ePresence's president and chief creative officer. "Given the growing market opportunity to provide personalized solutions based on a high-performance Internet foundation, teaming with Banyan Worldwide will enable us to offer a broad spectrum of customer-centric solutions."

About ePresence

Founded in 1995, ePresence specializes in the development and integration of dynamic Internet and portal solutions. ePresence develops a variety of personalized customer interaction solutions from web advertising consulting to creating interactive web sites. ePresence's client roster includes customers such as Morgan Stanley Dean Witter, AT&T and Lucent Technologies. For more information, visit www.epresence.com or call 732-933-9500.

About Banyan Worldwide

Banyan Worldwide (NASDAQ: BNYN) is a market leader in delivering e-business services based on leading-edge Internet and directory technology. Headquartered in Westboro, Mass., the company's Worldwide Services Division specializes in providing Internet solutions that build customer intimacy. Leveraging expertise in customer-centric, directory-based technologies, Banyan Worldwide's expertise, partnerships and methodologies help companies address new e-business models, drive revenues and grow business channels. The company's majority-owned Internet subsidiary, Switchboard Incorporated, is a leading Internet-based local merchant network interconnecting consumers, merchants and national advertisers. For more information visit www.banyan.com or call 1-800-2BANYAN.

The Company noted that each of the above statements using the terms "believe," "expects," "plans," and "anticipates," or other similar terms including statements about the future growth of the network services business are forward-looking statements and are subject to differ materially from actual results based on various important factors, including, without limitation, the impact of the Company's strategic initiatives to increase its focus on its Worldwide Services business, the company's ability to integrate and assimilate the Company's plans and strategy for its business, increased competition, acceptance of the Company's services in the marketplace, sales and marketing and development efforts, available resources, the Company's ability to attract and retain qualified personnel and fluctuations in the value of the Software.com securities held by Banyan. Actual events or results could differ materially from those indicated by such forward-looking statements. Further information on potential factors that could affect the Company's financial results are included in the Company's Form 10-K for the 1998 year, which was filed with the SEC at the end of March 1999 and the 10-Q for the third quarter of 1999, which was filed with the SEC in November 1999.