ClearWorks Announces Acquisition of LDConnect.com; Acquisition Allows ClearWorks to Directly Compete with AT&T, MCI and Other Major Long Distance Carriers.

Business Editors

HOUSTON--(BUSINESS WIRE)--July 25, 2000

CearWorks.net (AMEX:CLW) announced today that its subsidiary ClearWorks Communications, Inc. has signed a letter of intent to acquire LDConnect.com, a voice-over-ip (VOIP) worldwide long distance provider. The acquisition of LDConnect.com will add $4 million in new revenues to the Company in the first twelve months of operation.

ClearWorks.net is one of the leading providers of Fiber To The Home (FTTH), often referred to as "the last mile" solutions, for neighborhoods and businesses utilizing the Company's Bundled Digital Services (BDS) which includes high speed Internet connectivity, dial-tone, digital multi-channel video, on-demand video rental, a community Intranet and other digital services. The acquisition of LDConnect.com allows ClearWorks to move from a reseller to a direct provider of long distance, thus increasing its margins, controlling its costs and adding significant competitive advantages.

According to Shannon McLeroy, President and COO of ClearWorks.net, Inc., "The acquisition of LDConnect.com complements our strategy to lock up recurring revenues as a telecommunications provider for voice, video and data. We were already capable of competing with industry giants like AT&T and MCI, but we believe that this acquisition actually gives us a distinct advantage."

ClearWorks chose LDConnect because it presented a state-of-the-art opportunity utilizing worldwide coverage of packet voice rather than switched voice, which perfectly positions the Company for the future. The result is high quality long distance at a lower cost to the end user. In addition, LDConnect's subscriber base represents a huge opportunity for ClearWorks to sell additional services, increasing its revenues even more. LDConnect's equipment and network are very flexible and will meld with the metropolitan network that ClearWorks has already established. ClearWorks.net is especially prominent in the Southwest, including Houston, Dallas, Austin, San Antonio, Phoenix and Las Vegas.

In related news, ClearWorks.net also announced that its subsidiaries ClearWorks Integration Services, Inc. and United Computing Group, Inc. would merge and operate under the name ClearWorks IT Solutions, Inc. The Company will continue to be led by Kevin Casey, President of United Computing Group, Inc., and will primarily pursue the delivery of systems, software and integration services to commercial accounts.

Safe Harbor Statement Under Private Securities Litigation Reform Act of 1995: The above statements in regard to ClearWorks.net, Inc. and its affiliates and subsidiaries which are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including ClearWorks.net, Inc.'s beliefs, expectation, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and are based on information available to the parties as of such date. It is important to note that actual outcome and the actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as technological, legislative, corporate and marketplace changes.

For more information on ClearWorks.net, please visit the Company's Web site at www.clearworks.net.