Court Agrees With RMI On Significant Ruling in Internet Communications Lawsuit; Court Rules in Favor of RMI's Request to have Philip Anschutz's Lawyers Removed from Case.

DENVER--(BUSINESS WIRE)--March 1, 1999--Rocky Mountain Internet Inc. (Nasdaq SmallCap Market:RMII) (Nasdaq SmallCap Market:RMIIW) (RMI) Monday announced that the Denver District Court has issued a significant ruling in favor of RMI in its litigation with Internet Communications Corp. (INCC).

Specifically, the Court granted RMI's motion to disqualify INCC's counsel, the Denver law firm of Holme Roberts & Owen (HRO), from representing INCC in the lawsuit originally brought by INCC against RMI. The Court held that HRO cannot act as INCC's litigation counsel because they served as INCC's transactional counsel and were active participants in the proposed acquisition of INCC by RMI.

In light of this ruling, HRO attorneys could be called as material witnesses in the trial, and, more importantly, face a greater likelihood that their own actions will become central in any determination of who is responsible for the failed high yield debt offering by RMI and the failed acquisition of INCC.

"In my opinion, the Court justly saw that HRO could not defend its client, INCC, against the substantial claims raised in RMI's $175 million lawsuit without raising serious fairness and conflict of interest concerns, particularly when detailed allegations have been raised that question whether the HRO attorneys are themselves responsible for the failed transaction," stated Christopher J. Melcher, RMI's new Vice President and General Counsel.

"I think the Court's decision underscores the fact that INCC and their attorneys need to closely examine their role in RMI's failed debt offering and proposed acquisition of INCC last year before they look elsewhere to lay the blame," Melcher added.

As previously announced, RMI terminated a merger agreement to acquire INCC due to, among other things, INCC's failure to satisfy certain obligations in the merger agreement. INCC quickly filed a $30 million lawsuit claiming RMI had improperly terminated the merger agreement.

RMI filed an answer completely rejecting all allegations, and $175 million countersuit to INCC's lawsuit citing INCC, HRO and Interwest Group Inc. with failure, among other things, to file its proxy for shareholder approval in a timely manner.

Internet Communications Corp. is a Denver-based equipment services company. Interwest Group is owned and controlled by Denver billionaire Anschutz, which also holds controlling interest in Internet Communications Corp.

According to RMI's countersuit, INCC and HRO prevented RMI from successfully completing its $175 million high yield debt offering that was scheduled to close in August, which in part led to the failure of the proposed acquisition of INCC by RMI. In addition, the counterclaim cited INCC's failure to maintain its focus to ensure its operations were managed properly, which caused material adverse changes in its business from the time the agreement was executed to the time the closing was scheduled.

For a copy of the official court ruling, contact Margaret Huang, at BSMG, 310/966-5524.

About Rocky Mountain Internet

Denver-based Rocky Mountain Internet Inc. is a national e-business solutions and convergent communication technologies company with an emphasis on service quality. Rocky Mountain Internet's comprehensive e-business solutions include the following: electronic commerce (www.e-SELL.com), custom portals and banner advertising applications; Web site, intranet and VPN design and programming; and Web hosting, marketing and consulting.

Rocky Mountain Internet's convergent communication technologies include the following data and voice: high-speed dial-up, wireless, DSL and dedicated Internet access; switched long-distance, calling card, 800 services, voice mail and alphanumeric paging; and, IP-Telephony.

In addition to the company's e-business solutions and convergent communication technologies, Rocky Mountain Internet also maintains the award-winning portal site, Infohiway (www.infohiway.com).

For more information about Rocky Mountain Internet, call 800/864-4344, or visit the company's Web site at www.rmi.net.

This news release contains forward-looking statements. These forward-looking statements are subject to risks and uncertainties. Actual results may differ materially from such forward-looking statements as a result of risks and uncertainties which are described in the cautionary statements section of the company's 10K dated Dec. 31, 1997, and include the need for additional financing, the ICC litigation, ability to successfully integrate acquisitions, changing technology, competition, possible future government regulation, competition for talented employees, the company's ability to fund future operations and the company's need to refinance debt.