British Telecommunications Plc Selects Netopia to Bring High Speed Internet Access to UK Small Business.

ALAMEDA, Calif.--(BUSINESS WIRE)--June 28, 1999--

Netopia Will Offer Bundled Netopia ISDN Router

and "BT Connect to Business" Solution Through Its UK VARs

Netopia Inc. (NASDAQ:NTPA), a market leader in providing Internet infrastructure to small growing businesses, announced today that British Telecommunications plc (BT) has selected the Netopia R3100 as one of the routers of choice for its "BT Connect to Business" offering in the UK.

BT Connect to Business is an innovative Internet online service provider targeted at small- and medium-sized businesses. In addition to LAN (Local Area Network) Internet connectivity, it provides these businesses with a highly cost-effective way to boost their presence on the Web and to give their employees access to the vast resources of the Internet. The Netopia/BT Internet solution will be marketed through Netopia's UK VARs (Value Added Resellers).

Neil MacDonald, general manager of BT's corporate Internet business said: "We're pleased to be working with Netopia, their routers offer a combination of ease of use, are easily upgradeable and their business-class routing and management features that will be highly valued by UK small businesses."

The Netopia Small Business Internet Solution

The Netopia Small Business Internet solution includes a Netopia R3100 ISDN Router, all the necessary cables, a BT software kit, a Netopia "getting started" manual, and Netopia's SmartStart Wizard configuration utility. Customers can choose from a complete range of Internet access and service packages: -0-

--   btclick.com, offering free Internet access: customers pay only
     for local phone charges and technical support
--   BT Connect to Business LAN Access, which provides subscribers
     with 100 PoP3 email addresses, 10Mb of free disk space, Content
     and Message Centre for one user, unlimited 64-kbps ISDN Internet
     access at local rates throughout the UK, optional domain name and
     free unlimited technical support
--   BT Connect to Business LAN Access Plus, which includes all the
     Networker LAN Access features, plus Content and Message Centre
     for 10 to 50 users and Premium Info Services for all users.

-0-

The Netopia R3100 router comes bundled with BT SmartStart, a version of Netopia's unique, customizable SmartStart Wizard configuration software that has been specially tailored for BT customers. BT SmartStart automates -- and thus dramatically simplifies -- the router configuration process. It allows a non-technical, small business owner to set up Internet access for an entire LAN in just a few minutes, without even entering an IP address. BT customers have simply to follow a series of screen-by-screen instructions, then just enter the local access telephone number, user name and password. The Netopia R3100 is then automatically configured to provide immediate high-speed access to the Internet for the whole office with a single IP address, using Netopia's built-in SmartIP technology.

"We are pleased that BT has chosen to work with Netopia to promote its efforts to connect small and medium-sized UK businesses to the Internet," said Jerome Anastase, European sales director for Netopia Inc. "Shared simultaneous access to the Internet for an entire office is now made easy and affordable for small businesses that typically lack extensive in-house technical expertise."

Opportunities for VARs

The solution offers Netopia VARs additional ways to improve profitability beyond selling Netopia Internet equipment. This means that Netopia VARs also become a channel to market for BT's Connect to Business service.

About the Netopia R3100 ISDN Router

Like all Netopia R-series routers, the Netopia R3100 has a unique modular architecture which allows for easy upgrades, in order to meet the evolving needs of growing businesses. The WAN interface of the Netopia R3100 router can be upgraded to handle leased-lines, and DSL (Digital Subscriber Line) or cable modems, simply by swapping out the daughterboard.

Other industry-leading features of the Netopia R-series routers include: -0-

--   Bundled secure VPN (Virtual Private Networking) and MultiNAT
     (Network Address Translation) capabilities (available Q3 1999),
     and an optional VPN hardware acceleration kit (available fall
     1999)
--   Built-in firewall
--   IP and IPX routing
--   Optional AppleTalk and LocalTalk routing
--   Integrated 8-port 10 Base-T Ethernet hub

-0-

For more information on R3100 router, visit the Netopia Web site at: http://www.netopia.com/equipment/intl/r3100i_int/index.html

Pricing and Availability

The BT Netopia Internet solution is available starting July 1, 1999 throughout the UK.

BT Netopia R3100 router for 12 users: (pound)375.00 ($603.75)

exc. VAT

BT Netopia R3100 router for unlimited users: (pound)499.00

($803.39) exc. VAT

Upgrade from 12 to unlimited users: (pound)125.00 ($201.25) exc.

VAT

Networker LAN Access: (pound)80.00 ($128.80) per month, exc. VAT

Networker LAN Access Plus: an additional (pound)16.00 ($25.76)

per month, exc. VAT, for 10 users.

Training seminars for VARs on the BT Netopia Internet solution are being organized by Netopia on July 1 in London and July 2 in Leeds, UK. For more information, please contact Netopia by phone [phone] or fax [phone].

UK Distributor:

Principal Distribution LTD - Tel: [phone] - Fax: [phone] - www.principal.co.uk

About BT

BT Internet & Multimedia Services provides a wide range of on-line services for consumer and business use delivered through a range of devices including consoles, TVs, PCs and kiosks: -0-

--   BT Internet - providing a range of Internet services including
     voice over the internet whilst online and Trustwise digital
     certificates
--   btclick.com - free Internet access service with no registration,
     fixed term contracts or monthly subscriptions
--   Talk21 - free email address service
--   BT Interactive -the UK's fastest ever Internet service currently
     on trial in West London

     Joint venture initiatives include:

--   LineOne, a Web-based service offering Internet connection and
     online UK focused content. A joint venture between BT and United
     News & Media.
--   BiB, a joint venture between BT, BSkyB, Midland Bank and
     Matsushita - providing digital interactive television services
--   Excite UK, a joint venture with US Internet portal, Excite Inc

-0-

For more information please contact:

David Pincott, Press and PR Manager, BT Internet & Multimedia Services, Telephone [phone], e-mail [e-mail]

About Netopia, Inc.

Netopia, Inc. is a market leader in providing small, growing businesses with their Internet presence, including high speed DSL Internet connectivity solutions and new generation Web site services. Netopia's innovative products and unique customer support provide users with "What the Internet Experience Should Be."

The Company has been successful in helping millions of Internet and Intranet users increase their productivity. With its Netopia Virtual Office platform, Netopia has established Web site services with Netscape NetCenter, Intuit (NASDAQ: INTU), Concentric Network (NASDAQ: CNCX) and Network Associates (NASDAQ:NETA). With its Netopia Internet Router family, Netopia has established strategic partnerships with hundreds of ISPs including France Telecom (NYSE: FTE), Bell Atlantic (NYSE: BEL), Concentric Network (NASDAQ: CNCX), Earthlink (NASDAQ: ELNK), PSINet (NASDAQ: PSIX), Telecom Italia (NYSE:TI), Verio and UUNet (NASDAQ: WCOM). Headquartered in Alameda, California, Netopia's common stock is traded on The NASDAQ Stock Market under the symbol "NTPA". Further information about the company can be obtained via phone [phone], fax [phone] or Internet at www.netopia.com.

Portions of this release contain forward-looking statements. Netopia, Inc.'s actual results could differ materially from the results discussed in this release. Investors are cautioned that all forward-looking statements involve numerous risks and uncertainties, including but not limited to product development, product acceptance, licensing opportunities and general economic conditions. A complete description of Netopia, Inc., including related risk factors is discussed in Netopia, Inc.'s public filings with the United States Securities and Exchange Commission which are available by calling Netopia at 510-814-5260 or online at http://www.sec.gov. All company names, brand names and product names are trademarks of their respective holder(s).