First Pacific Networks chosen to provide the first commercial cable telephony system in The Netherlands in pact with Bosch Telecom and Ericsson Telecommunications.

SAN JOSE, Calif.--(BUSINESS WIRE)--August 17, 1995--First Pacific Networks Inc. (NASDAQ:FPNX)("FPN") announced today that it has been selected as a primary vendor by Multikabel n.v. Kabeltelevisie Kop Noord-Holland ("Multikabel") to supply the FPN1000i(TM) Cable Telephony System, to enable the delivery of telephone service over Multikabel's hybrid fiber/coaxial broadband cable television networks- the first such commericial deployment in The Netherlands. In addition to the FPN1000i(TM), Multikabel will also use cable telelvision equipment supplied by Bosch Telecom ("Bosch") and telephone switching technology supplied by Ericsson Telecommunications ("Ericsson"), both of whom will jointly act as system integrators for this and future Multikabel projects.

Multikabel is a leading Dutch cable television operator serving over 160,000 subscribers in a market that has a revenue potential for FPN in excess of $16 million, once the total Dutch telecommunications environment is liberalized in 1998.

J.P. Molenkamp, Director of Multikabel stated, "Multikabel is actively engaged in enhancing and expanding its entire hybrid fiber-optic/coaxial ("HFC") broadband cable television networks in anticipation of the coming deregulation. We will initially implement a 300+ subscriber pilot project in Strandslag Julianadrop, a holiday village near Den Helder, The Netherlands, using the FPN1000i(TM) cable telephony system. The Strandslag pilot project will allow us to experiment with cable telephony two years earlier as a telephone operator to determine how we can service the entire North Holland market in 1998.

"It is our intention to become the dominant player in that market by offering a full range of sophisticated telephone, telecommunications and multimedia services, all made possible by the FPN1000i(TM) system, over our cable television networks to a majority of our subscriber base. With our large scale approach we expect that regional tariffs will be lower than PTT Telecom's current price level, enabling Mutlikabel to be an aggressive competitor and the provider of choice of telephone and telecommunications services."

Graham Bacon, Regional Managing Director for FPN UK Ltd., said, "Bosch Telecom and Ericsson Telecommunications represent an ideal partnership for FPN in The Netherlands. Together, they are able to offer Multikabel and other innovative cable television system operators a rare combination of the skills needed to succeed in this dynamic new marketplace. We look forward to working with Multikabel's system integrators, Bosch and Ericsson, on this milestone project."

M. Peter Thomas, President and Chief Executive Officer of First Pacific Networks commented, "We are delighted that the FPN 1000i(TM) system, has been chosen by Multikabel as the core enabling technology for their cable telephone system. They are taking the lead in aggressively addressing the Dutch telecommunications marketplace as The Netherlands moves towards an open and competitive environment in 1998. We look forward to working with Multikabel as they upgrade their existing cable television networks and bring their subscribers onto the the global information superhighway."

Although The Netherlands is not expected to have complete legislation in place until 1998 to permit full telephone and telecommunications competition nationwide in coordination with European Union ("EU") initiatives, the government does permit cable telephony to be implemented in "closed terrains" or "closed user groups" such as a hotel with its own telephone systems or holiday villages, such as the Strandslag Julaianadrop Holiday Park.

FPN U.K. Ltd., a wholly owned subsidiary of California-based First Pacific Networks Inc., was formed to address the burgeoning cable television market in the U.K., Europe and Africa. Its headquarters is located at Watermans Court, Kingsbury Crescent, The Causeway, Stalnes, Middlesex, TW18-3BA, U.K., Telephone: 441.784.442.437 and Fax: [phone].

First Pacific Networks Inc. develops and markets systems for telephone, data, and energy management communications over hybrid fiber/coaxial ("HFC") cable networks, both domestically and internationally.

CONTACT: First Pacific Networks Inc.

Jim Hirschy, 408/943-7600

or

FPN U.K. Ltd.

Sarah Owen, 441.784.442.437

or

Kehoe, White, Savage & Co. Inc.

Van Negris, 212/888-1616