Cyberion Networking Corp. Acquires Three Internet Related Companies In British Columbia.

SURREY, British Columbia--(BUSINESS WIRE)--Jan. 10, 1996-- Cyberion Networking (VSE: CYB) Cyberion Networking Corp. announces that it has entered into a letter of intent for the acquisition, subject to regulatory approval, of the assets and business of Pacific Interconnect Enterprises Inc., Softwords Research International Ltd. and Coastnet Designs, all located in Victoria, B.C.

Pacific Interconnect is a leading Internet service provider specializing in providing services to corporations in greater Victoria. Pacific Interconnect currently has 2,000 dial-up subscribers and also manages bandwidth for 15,000 subscribers to Victoria's free-net bulletin board services. In addition to providing dial-up access to the Internet, Pacific Interconnect offers network consulting and value added services including systems integration and web page development. Pacific Interconnect will serve as Cyberions' Victoria, B.C. point of presence.

Softwords Research International brings to Cyberion many years of expertise in the areas of developing software content, training programs and developing tools utilized in the creation of Internet businesses. Softwords client base includes a number of major local corporations including several in Vancouver. Softwords has developed over 2,900 web pages and is currently assisting in developing a web site for the Council of Tourism in B.C.

Coastnet Designs is a full service Internet dial-up access provider in Victoria, B.C. and currently has over 300 dial-up subscribers. Mr. Stuart Morton, one of the principals of Coastnet Designs is a 30 year broadcast veteran and Vice President of the western based OK Radio Group with AM and FM stations in Alberta and British Columbia. Cyberion will bring Coastnet's business under the Pacific Interconnect management and provide working capital to permit Coastnet to expand its' subscriber base.

Pacific Interconnects' principal and Chairman, Dr. W. David Godfrey, stated, "We are excited about working with Cyberion and feel this merger will strengthen our ability to bring additional value added network services throughout western Canada." Mrs. Ellen Godfrey, president of Softwords is a member of a number of Federal and Provincial Advisory Boards including the B.C. Working Opportunity Fund and the Premiers Advisory Council on Science and Technology. Subject to the closing of the transaction, Dr. Godfrey and Ellen Godfrey will be appointed board members of Cyberion Networking Corp.

John C. Anderson of Cyberion stated, "This group of companies brings an exceptional breadth of talent in telecommunications, media development and marketing to Cyberion and collectively will bring to Cyberion a depth of knowledge in content development, media advertising and Internet networking management capabilities. With this acquisition Cyberion becomes a leading Canadian player in the Internet services business."

Cyberion will continue to operate Coastnet, Pacific Interconnect and Softwords as divisions of Cyberion. In consideration for the acquisition of the assets and business, Cyberion will pay up to $2.550 million consisting of $340,000 cash and issue up to 552,500 common shares, of which 340,000 shares will be issued over time based on revenue ad profitability of the on-going operations of the divisions. The transaction is subject to regulatory approval.

Cyberion Networking Corp. is a national Internet service provider in Canada with points of presence in Victoria, Vancouver and London, Ontario and a national operating network centre in Surrey, B.C.

CYBERION NETWORKING CORP. "John C. Anderson" President & Chief Executive Officer

CONTACT: John C. Anderson, 604/597-6200

President & Chief Executive Officer

604/597-6214 (FAX)