ClearWorks Completes Acquisition of LDConnect.com; Acquisition of Long Distance Carrier Enhances BDS Offerings.

Business Editors & High-Tech Writers

HOUSTON--(BUSINESS WIRE)--Oct. 11, 2000

ClearWorks.net (AMEX:CLW) announced today that it has closed the acquisition of LDConnect.com. LDConnect.com is a voice-over-ip (VOIP) based worldwide provider of long distance services. The acquisition was completed by ClearWorks Communications, Inc. and enhances the Bundled Digital Services (BDS) offering of the Company by providing the ability to deliver long distance via in-house capabilities. The acquisition of LDConnect.com will add approximately $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.

According to Michael McClere, CEO of ClearWorks.net, Inc., "The completion of the LDConnect.com acquisition, allows us to fill in the long distance portion of our BDS offerings. LDConnect.com fits as part of ClearWorks Communications and positions us to increase our profit levels on services we already offer as well as our future services. Our margins on long distance service will move from only eighteen percent to nearly eighty percent overall. Long distance offerings represent a usage based service which will add to the approximately $150/month average subscriber revenue we currently produce. We intend to offer our shareholders a limited amount of free long distance as a way to introduce our offering to the market. The world of telecommunications is changing, allowing us to compete effectively using Internet technology with industry giants like AT&T, Sprint and MCI."

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. ClearWorks chose LDConnect because it represented an opportunity to acquire state-of-the-art facilities based long distance service offerings utilizing worldwide coverage of packet voice rather than switched voice technology. The utilization of voice-over-ip (voip) technology perfectly positions the Company for the short term as well as the future. Since ClearWorks.net is a Internet Protocol (IP) based service provider, VOIP technology fits seamlessly with the Company's technology deployment. The result is high quality long distance at a lower cost to the end user as well as a lower cost to the Company. The LDConnect.com equipment and network are very flexible and will meld with the metropolitan area network that ClearWorks has already established. ClearWorks.net is currently offering services in the Southwest, including Houston, Dallas, Austin, San Antonio, Phoenix, and Las Vegas.

In related news, ClearWorks.net recently announced that it has closed a credit facility agreement with Financial Security Systems. The agreement provides for the financing of ClearWorks' security-monitoring accounts based on a multiple of the monthly invoice amount.

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.