British Telecommunications Selects N2H2 as Internet Filtering Service.

SEATTLE--(BUSINESS WIRE)--Nov. 17, 1999--

United Kingdom's Largest Telco Chooses Best-of-Breed to Ensure

a Safe Internet Experience for Businesses and Consumers

Leading telecommunications company British Telecommunications plc (BT) today announced it has chosen leading Internet content filtering firm N2H2, Inc. (Nasdaq:NTWO) as its preferred provider of Internet filtering and communication services for all United Kingdom BT corporate and consumer customers.

N2H2, headquartered in Seattle, develops and markets innovative Internet content filtering solutions that provide a productive and safe Internet experience in the business, consumer and education markets.

Using proprietary technology and intensive human review, N2H2's flagship Internet filtering service will provide BT customers with a turn-key, proxy server-based solution to screen out millions of pornographic, hate, drug-related, and other unwanted Web sites. The N2H2 filtering and communication services will be key components supporting BT's initiative to provide the newest technologies to its customers. The service can be utilized as a stand-alone product or in addition to other tools

John Tomany, General Manager of Web Hosting & Co-location Services, said, "Hosted at one of our leading-edge data centers, N2H2 will benefit from the controlled environment and superb network capabilities whilst we are able to add a valuable service to the suite of products available to our customers."

N2H2's Internet filtering technology, part of its growing family of dynamic communication services, scans the Internet for content that fits into one or more of 32 categories to deliver tailored filtering of Web content. This technology provides businesses with a customizable service for enhancing employee productivity, reduces legal liability, and increases bandwidth across enterprise networks. In addition, peace of mind is delivered to millions of parents and consumers desiring a safe and productive Internet experience at home with automatic daily updates of new objectionable Web sites and 24-hour technical support.

"We are pleased British Telecom recognizes the best technology and service in the filtering industry," said Peter Nickerson, president and CEO of N2H2. "Adding N2H2 to their suite of services will enable BT to better service its growing client base."

About BT Internet and Multimedia

BT Internet & Multimedia Services is one of the UK's largest providers of online services for consumer and business use. Its product portfolio includes: BT Internet, providing a range of Internet services; btclick.com, free Internet access service with no registration, fixed term contracts or monthly subscriptions; BT Internet PC, Internet access package including PC, installation, tuition, delivery and free weekend access; Talk21, free e-mail address service; and a wide-ranging portfolio of e-business solutions and Intranet services. 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, HSBC and Matsushita, providing digital interactive television services; and Excite UK, a joint venture with the U.S. Internet portal, Excite Inc. For more information, please contact David Pincott, BT Internet & Multimedia Services Press and P.R. Manager, 011-44-171-492-8470 or [e-mail].

About N2H2

Founded in 1995, N2H2, Inc. is a leading Internet infrastructure company. N2H2 provides categorization of Internet Web sites that its customers use to manage their end-users' Internet experience. Its database is built and managed by a sophisticated combination of proprietary technology and human review, providing the best way of keeping pace with the rapidly growing content on the Internet. The database is the largest and most dynamic of its kind, covering millions of Web sites from around the world. N2H2's current products include Bess brand filtering for schools and the Searchopolis educational portal with filtered search capabilities. Additional information about the company, which is based in Seattle, is available at www.n2h2.com or by calling 206/336-1501 or 800/971-2622.

Except for historical information contained herein, the press release contains forward-looking statements, including statements containing the words "executes, opportunity" and similar words. Such forward-looking statements are subject to various known and unknown risks and uncertainties and are therefore not a Guarantee of future performance. The potential risks and uncertainties which could cause actual growth and results to differ materially include but are not limited to, the volatile and competitive nature of the Internet filtering industry, changes in domestic market conditions, the success of the company's brand development systems efforts, and customer acceptance of the company's services, products and fee structures. Further information on the factors and risks that could affect N2H2's business, financial condition and results of operations are included under the Risk Factor's Section of N2H2's public filings with the Securities and Exchange Commission, including the Registration Statement on Form S-1 (File No. 333-78495), that are available at http://www.sec.gov.