CallWave's Free Phone Line Services Help ISPs Reduce Churn and Produce New Revenues.

Business Editors

SANTA BARBARA, Calif.--(BUSINESS WIRE)--April 10, 2000

CallWave's Internet Answering Machine Saves Dial-Up ISP Customers

Hundreds of Dollars Per Year in Phone Line Charges

CallWave Monday announced the industry's first co-branded virtual phone line program that will enable Internet Service Providers to offer a powerful value-added free service to their dial-up customers and generate a new revenue stream.

The CallWave Internet Answering Machine (IAM) is a compact, downloadable applet that enables Internet users with a single phone line to hear who's calling while they're online. Instead of getting a busy signal, callers can leave a message that the Internet user hears instantly on his or her PC speakers.

By offering CallWave's free Internet Answering Machine to their subscribers, ISPs in the United States can enable Web surfers to avoid the cost of a second phone line. Once using IAM, Web surfers do not have to go offline or leave a Web site to hear who's calling.

ISPs can also join CallWave's affiliate program and earn a lead fee for every subscriber that signs up for the service. Since CallWave saves Internet users up to $40 per month on phone line charges, the free service can help traditional ISPs hang on to their subscribers in the face of the ever-increasing threat from free ISPs. While free ISPs require the user to give up nearly 1/4 of their screen space for banner ads, CallWave's application saves Internet users just as much money but only occupies a tiny fraction of the user's desktop for displaying banner advertisements.

"We are always looking for ways to add value to our service," said Jill Trexler, who runs EOSINC.com, an ISP based in Springfield, Ill. "We have so many subscribers who use CallWave and love it, that we were thrilled when we found out we could offer the free service on our home page and receive revenue for each new customer who signs up. There aren't many things out there that are as easy to use and provide such a valuable service," Trexler added.

"Our new CallWave ISP program provides both a co-branded offer page as well as an aggressive pay-per-lead affiliate program," stated Palmer Jackson, director of Business Development for CallWave. "In addition to improving stickiness and providing a valuable service for free to ISP subscribers, Internet Service Providers can generate $1 for each CallWave customer they refer. This is a big win-win for everyone," said Jackson.

According to Dana Thorat of IDC, by the end of 2003, over 20 million Web surfers will be using an Internet Call Answering service. According to Paul Stockford, research analyst at Saddle Tree Research, over 12 million will be using one by the end of 2000. The demand is clearly there. Dana Gardner, analyst at Aberdeen Group Inc. in Boston commented, "With 1 million users, CallWave is emerging as the leader in the Internet Call Answering Services category. There's huge demand among homes and small businesses with one telephone line who want Internet access, but not at the cost of missing phone calls."

About CallWave(TM)

CallWave is a new type of Internet-based telephone company with corporate offices in Santa Barbara. CallWave's mission is to give Internet users the convenience and functionality of extra phone lines in their home or small office, without having to install or pay for additional lines from the phone company. CallWave's Internet Answering Machine is a free alternative to a dedicated modem line, and the FaxWave fax-to-email service is a free alternative to a dedicated fax line. Both services are available to Internet users nationwide, and use open file formats, enabling voice and fax messages to be reviewed on and forwarded to almost any computer.

Media inquires should be directed to Bruce Thompson at [e-mail] or by telephone to 805/690-4115. Questions about the new ISP program can be directed to Palmer Jackson at [e-mail] or by telephone to 805/690-4105. CallWave, Internet Answering Machine and FaxWave are service marks of CallWave Inc. All other trademarks are the property of their respective owners. To subscribe or for more information, visit http://www.callwave.com.