N2H2's Searchopolis.com Ranked No. 1 Kids Search Engine for Second Straight Year.

Business Editors, High-Tech Writers

SEATTLE--(BUSINESS WIRE)--Aug. 25, 2000

Children's Software Revue Magazine Awards Filtered Search Engine

Its Only Five-Star Rating

In its September/October 2000 issue, Children's Software Revue magazine, an authoritative publication focusing on the review of educational technology for schools and homes, has ranked N2H2's filtered search engine, www.Searchopolis.com, as the No. 1 kids search engine for the second consecutive year.

N2H2, Inc. (Nasdaq:NTWO) is a leading Internet infrastructure company specializing in filtering, Internet management, and content delivery services.

Searchopolis.com was compared to three other children's Internet search tools, including Ask Jeeves for Kids, AOL Kids Only and Yahooligans. Weighed against the others, the article stated, "With Searchopolis, you get more of a feeling of the way the Web really is." Children's Software Revue reached its conclusion by comparing responses to searches on the same subject in each. When searching for key words in the sex category, such as "breast," N2H2's Searchopolis found 203 safe sites compared to Ask Jeeves for Kids' 15 sites, AOL Kids Only's zero sites and Yahooligans' three sites. The article also searched on topics "George Bush" and "Salamanders." Searchopolis consistently found thousands more relevant links than the others combined, including pages deemed "important" and "very relevant."

"This is a great honor from a highly respected voice in the youth software and technology industry," commented N2H2 President and Chief Executive Officer Peter Nickerson. "The Children's Software Revue ranking validates N2H2's filtering philosophy by offering innovative technology in a productive learning environment."

According to Warren Buckleitner, editor of Children's Software Revue, "The Internet is a place with content for both children and adults. Just as parents review children's access to cable television programming, they are responsible for making sure their child's Internet experience is appropriate. Today, there are some great tools to make this easier. Searchopolis has consistently ranked high on this list of tools."

About N2H2, Inc.

N2H2, Inc., (Nasdaq:NTWO) is a leading Internet infrastructure company specializing in filtering, Internet management, and content delivery services for work, home and school. The company reviews and categorizes Web content and delivers it with integrated Internet products and services through a global interactive network. N2H2 serves the following markets:

-- Enterprise -- provides filtering and related services that

allow businesses to manage Web usage in the workplace to

reduce potential liability, improve bandwidth efficiency, and

give employees access to a more productive Internet

-- Education -- provides schools with filtering services and

information resources, creating a safer and more productive

Internet for students and educators

-- Consumer -- provides home users customizable filtering tools

and content services to make the Internet appropriate for each

member of the family

Founded in 1995, N2H2 has more than 15 million users and a network of more than 1,500 filtering-enabled servers in the U.S., Canada, Australia, UK, Germany, Japan, Chile, Mexico, India, and Bermuda. Additional information about the company, which is based in Seattle, Washington, is available at http://www.n2h2.com or by calling 206/336-1501 or 800/971-2622.

Except for the historical information contained herein, this press release contains forward-looking statements. Such forward-looking statements are subject to various known and unknown risks and uncertainties and are therefore not a guarantee of future performance. The potential risks and uncertainties which could cause actual growth and results to differ materially include but are not limited to, the volatile and competitive nature of the Internet filtering industry, changes in domestic and international market conditions, the success of the company's brand development systems efforts, and customer acceptance of the company's services, products and fee structures. Further information on the factors and risks that could affect N2H2's business, financial condition and results of operations are included under the Risk Factors Sections of N2H2's public filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K (Commission File No. 0-26825), that are available at http://www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of this release. N2H2 undertakes no obligation to update publicly any forward-looking statements to reflect new information, events, or circumstances after the date of this release or to reflect the occurrence of anticipated events.