Chello Broadband Announces Global Expansion Into Australasia.

Business &Technology Editors

AMSTERDAM--(BUSINESS WIRE)--Feb. 3, 2000

chello broadband n.v.--

- Australia and New Zealand mark expansion into Asia Pacific

- Delivery of service over satellite confirms chello's

commitment to provide service across multiple

technology platforms

- Management team brings strong content, technology and

market expertise to chello

chello broadband n.v. (chello), www.chello.com, Europe's leading provider of broadband internet services to residential subscribers, and an operating company of United Pan-Europe Communications (UPC), today announces its first moves beyond the European continent. This follows on the heels of chello being awarded the `Best European Consumer ISP' title at the ISP Forum 99 and the recent announcement of chello's 121,000th subscriber as of December 31 last year.

chello broadband Australia Pty Ltd. provides a range of multimedia and e-commerce solutions which only high-speed broadband internet access can deliver. In preparation for broadband service in Australia, a full-scale commercial trial of broadband internet access has been introduced by AUSTAR United Communications(TM), with the full chello service following in the first half of this year. chello is also launching its service in New Zealand, in association with Saturn Communications Ltd., in the same timeframe. In both countries, subscribers will have access to a range of top-quality multimedia channels including news, entertainment, communications, and interactive games through their PCs. Customers can access email and e-commerce solutions via an attractive and easy-to-use broadband subscriber portal.

Both the Australian and New Zealand subscriber portals will contain local content, in keeping with chello's philosophy to deliver the world wide web with locally-relevant content. As in Europe, chello is working with a range of international, national, and local content providers to develop a range of broadband multimedia services.

Mitch Clarke, managing director of sales and affiliate operations, chello broadband n.v., commented enthusiastically: &uot;We're obviously very excited about this expansion. AUSTAR and Saturn are major players in their markets and our partnerships with them give us all a solid foundation. We look forward to a long and fruitful relationship bringing broadband interactive services to Australia and New Zealand.&uot;

John Porter, CEO of AUSTAR, said: &uot;The rollout of chello's broadband internet services will give Australians in regional and rural households access to a rich variety of local, national and international content and shopping. That means, for the first time, they will have the opportunity to enjoy the real power of the next generation of internet services well before most of the major cities. People in regional Australia are extremely internet aware but until now have not had the opportunity to benefit from the kind of broadband service offered by chello. We have seen how well the chello experience has worked in Europe and know that it has enormous potential here.&uot;

Roger Lynch, president and CEO of chello broadband n.v., said: &uot;This expansion comes hot on the heels of chello's recent announcement of 397 per cent growth since 1 January 1999. While chello delivers its service in Europe and will deliver it in New Zealand over cable, the service is being offered in Australia over satellite, underlining our determination to work with all appropriate partners and technologies to provide the best possible broadband service.&uot;

The new chello Australasia team bring to the company with a wealth of internet experience especially in the areas of technology and content. Key members of the team include:

Philip Alexander: Managing Director

Philip joins chello from Telstra (Australia's largest telecoms company), where he was the General Manager of Online Applications. In this role he managed Telstra media and content joint ventures and developed online content, services and applications across Telstra. Previously Philip was the General Manager of VNU Asia Pacific, based in Hong Kong and, prior to that, Group Publisher and Managing Director with VNU subsidiary BPI Communications, based in Amsterdam and London.

Geoff Isaac: Marketing Director

For the past two-and-a-half years Geoff worked with OzEmail (then Australia's largest ISP), as the Vice President of Marketing and Research, and most recently as the Vice President, Consumer Division. Prior to joining OzEmail, Geoff worked with Web Wide Media (a subsidiary of OzEmail) as Director of Research.

Mark Hood: Consumer Sales Director

Mark joins from Austral Security Group where he was employed as the National Sales and Marketing Manager. Previously he was the National Sales Manager - Rural with AUSTAR Entertainment.

Tom Quinn: Technology DIrector

Tom joins chello from Cable and Wireless Optus, Australia's No. 2 Telco, where he was head of IT Infrastructure. In this role he managed the rollout and operation of IT infrastructure for all products across all lines of business. Prior to that he was CIO for Star City Casino and Head of IT Services for the Australian Stock Exchange.

Bernadine Sheehan: Content Director

Bernadine brings to chello two decades of experience in developing and producing content as an online producer, a newspaper journalist and communications specialist. For the past four years, she has held senior producing and programming positions at Sydney Sidewalk, ninemsn and more recently, preparing for the Australian portal launch of Encyclopaedia Britannica this year.

Deborah Logan: e-commerce Manager

Deborah joins from AT& Online where she was responsible for the development and management of the company's e-commerce products across the region as Asia Pacific Electronic Commerce Services Regional Product Manager. Previously, she was Marketing Manager of Open Net, a national ISP specialising in internet and electronic commerce products and solutions.

Jodie Palmer: HR and Projects Manager

Jodie began her chello career in Amsterdam as human resources director. She has returned to her native country to continue the team building she shaped for chello's European offices and to ensure that the true chello spirit continues in Australia and New Zealand.

About chello broadband n.v.

chello broadband is Europe's leading provider of broadband internet services to residential subscribers and is an operating company of United Pan-Europe Communications (UPC). chello is commercially active in six countries with corporate offices in Amsterdam and local offices in Amsterdam, Paris, Vienna, Hamburg, Brussels, Oslo, Stockholm, Washington DC and Sydney. It provides a service to cable operators and other broadband networks and is committed to delivering next-generation, 24-hour accessible internet services and broadband content to consumer and business subscribers. chello broadband operates in Australia with United Globalcom (UGC) affiliate AUSTAR United Communications(TM). The broadband distribution is via satellite in Australia and will be via cable in New Zealand. chello announced its 121,000th subscriber as of 31 December 1999.

chello delivers text, sound and video through local language portals over AORTA(TM), chello's own Pan-European IP backbone, and Europe's largest distributed caching infrastructure, bringing customers a high-quality broadband internet experience with minimal cost. chello(TM) is a registered trademark of chello broadband n.v.

BEST EUROPEAN CONSUMER ISP 1999

About AUSTAR United Communications(TM) Through its three operating subsidiaries, Austar United Communications (Australian Stock Exchange &uot;AUN&uot;) is one of the largest and fastest growing broadband communications companies serving the Australian and New Zealand markets. AUSTAR Entertainment is the second largest pay TV operator in Australia, and the largest providing digital DTH services, with over 370,000 subscribers. XYZ Entertainment is a significant program provider in the Australian market and owns and/or distributes Nickelodeon, Discovery, Channel [V], Arena and The Lifestyle Channel to over 900,000 subscribers. And Saturn Communications operates the first and largest broadband telecommunications company in New Zealand, offering a full mix of cable television, telephony and Internet services. Austar is one of the first companies in Australasia to offer broadband internet access and will be the first to launch interactive television. Austar United is 75% owned by UnitedGlobalCom.