Fax.com Responds to $2.2 Trillion Class Action Lawsuit; California Fax Company Characterizes Suit as ``Unfounded & Absurd''.

Business Editors

ALISO VIEJO, Calif.--(BUSINESS WIRE)--Aug. 23, 2002

In response to yesterday's filing of a $2.2 trillion class action lawsuit condemning the broadcast fax industry, Fax.com, an Aliso Viejo, Calif.-based company named in the suit, characterizes the allegations as "unfounded and absurd." Fax.com President Kevin Katz said that businesses that utilize his company's services have the constitutional right to advertise by fax, and the U.S. District Court, Eastern District of Missouri, ruled in March 2002 that a ban on fax advertising "unnecessarily violates First Amendment rights."

Allegations made in the suit against Fax.com by Internet entrepreneur Steve Kirsch say that broadcast faxing "endangers safety" and costs consumers "tens of millions of dollars," as stated in a press release issued by Kirsch. Katz refutes such charges and says that any recipient who wishes not to receive fax advertisements need only call the toll free number that appears on every fax distributed by Fax.com in accordance with California law. Fax.com contends that California state courts have thrown out lawsuits similar to the one initiated by Kirsch yesterday.

"I am dismayed by the inflammatory charges leveled in the suit," said Katz. "For Kirsch to claim that a fax can `endanger public safety' is bizarre."

Katz stated that fax broadcasting has contributed to the recovery of a number of missing children in recent months. At no charge, Fax.com faxes out missing children alerts for Operation Lookout, the Polly Klaas Foundation and other organizations. Fax.com also has faxed alerts for law enforcement to help them track fugitives and has provided other nonprofit organizations with free fax services.

According to Katz, the lawsuit is being used to intimidate Fax.com's customers -- many of whom are small business owners who rely on faxing as an affordable and effective method of advertising.

"Many of our clients do not have access to traditional forms of advertising, which can be very expensive," said Katz. "Fax advertising enables them to compete with larger, more established companies because consumers respond to their faxes and patronize their businesses."

Although Fax.com already removes fax numbers upon request, Katz is in favor of a statewide or even nationwide "do not fax" list. A law to create a California "do not fax" list was proposed earlier this year. Kirsch opposed the legislation, according to Fax.com.

Katz is disappointed by Kirsch's stated goal as told to the San Jose Mercury News on Aug. 22 which is to drive Fax.com out of business.

"As a businessman, Mr. Kirsch must understand that a small company like ours could never pay a huge damage award," said Katz.