CAIS Internet Extends Broadband Internet Access Services to Europe; CAIS Establishes Regional Marketing Headquarters in Scandinavia.

Business Editors/Hi-Tech Writers

WASHINGTON--(BUSINESS WIRE)--Oct. 6, 2000

CAIS Internet (NASDAQ:CAIS), the leading provider of broadband Internet access solutions for the hospitality and multi-family markets in the United States, today announced the expansion of its Internet services to Europe.

This venture marks the beginning of CAIS's plans for a broader expansion into the European and Asian markets.

CAIS commenced trial installations in two major hotels in Oslo, Norway, the Byporten Hotel and the St. Olav Hotel, owned by Scandic, the largest hotel group in Scandinavia. High-speed Internet access, scheduled for completion at both properties during the fourth quarter, will enable guests to benefit from the CAIS patented technology while on the road.

These initiatives in Europe further demonstrate CAIS's plan to establish its leadership position in the growing global broadband services sector. The company will use its technology and proven expertise to deploy its Internet access solutions to hotels and multifamily residences throughout Europe, Asia, Latin America, the Middle East and elsewhere throughout the world.

"The demand for high-speed Internet access is intensifying in every developed market outside of the United States; Internet usage rates in the Nordic countries are among the highest in the world." noted Morris F. DeFeo, Jr., Executive Vice President for Corporate and International Transactions for CAIS Internet. "This demand is motivating incumbent/privatized telecommunications providers to focus on partnering with established high-speed Internet providers to satisfy demand from this growing customer base. CAIS is strongly positioned to offer global chain-wide solutions to international hospitality groups, regardless of the size and scope of their individual properties," DeFeo added.

"Becoming a global provider of high speed Internet access services has been one of our key strategies from the very beginning," said Ulysses G. Auger II, CEO of CAIS Internet. "As demand continues to intensify for broadband access worldwide, we intend to deliver our signature high-speed Internet solutions to both the hospitality and the multifamily industries in key overseas markets."

Mr. DeFeo will spearhead this international initiative, which began with the opening of the CAIS Nordic headquarters in Oslo. Statistics reveal that approximately 70% of the population outside of the U.S. live in multifamily units, as compared with just 20-to-30% of all Americans who live in multifamily residences.

The CAIS patented technology is an ideal end-to-end solution for hotel and multi-family infrastructures. It brings high-speed Internet access to properties with no messy installation and expensive rewiring.

CAIS simply installs its filtering technology at the origin of the telephone signal on top of the property's existing telephone system--allowing both voice and data to travel on the same line simultaneously. It alleviates PBX congestion while creating an Ethernet local area network.

When combined with dedicated broadband Internet connection, such as T1, T3 or DS3, the CAIS solution provides users an uninterrupted, dedicated high-speed Internet connection that can be shared simultaneously among many users in a hotel.

Domestically, CAIS Internet has signed agreements with industry-leading hotel chains, collectively representing over 9,800 properties and 1.3 million hotel rooms, to provide specialized Internet content and broadband Internet access to business and recreational travelers.

Major hotels signed up to extend their customer services with CAIS Internet include Cendant Corp., Carlson Hospitality Worldwide, Bass Hotels, Prime Hospitality and Hilton Hotels Corp. CAIS Internet also has signed service agreements with apartment community organizations that collectively represent more than 730 properties and more than 215,000 individual residences.

About CAIS Internet

CAIS Internet, Inc. (NASDAQ: CAIS) is a leading broadband access solutions company providing comprehensive high-speed Internet solutions to business and residential customers in hotel guest and meeting rooms, apartments, small-to-medium size businesses, airports, travel plazas, cruise ships, and retail stores.

CAIS installs low cost, convenient in-building networks and offers content service for multiple users with proprietary and patented technologies. CAIS also provides public area Internet kiosks and gives businesses high-speed connectivity with DSL, satellite and leased-line dedicated access.

The customer experience is the result of a one-stop, integrated solutions package of innovative CAIS technologies, customer support, portal content and systems.

CAIS Internet currently is preferred vendor for more than 1.1 million hotel rooms, or 9,900 properties, which will also carry CAIS meeting room and IPORT kiosk access solutions. CAIS is also the leader in agreements to deliver Internet solutions to more than 700 apartment communities, or more than 240,000 apartment homes.

CAIS Internet operates a Cisco-powered, clear-channel Internet and ATM Network, and peers with public and private partners, and at national exchange points. CAIS is also partnering with Microsoft to deliver a jointly branded CAIS/MSN portal, which will available to many users of CAIS's high speed Internet access.

Headquartered in Washington, DC, CAIS Internet has two subsidiaries in California, CAIS Software Solutions and Business Anywhere.