Netopia and Verifone Partner to Bring Wi-Fi Hot Spots to Merchants; Integrated Solution Combines Netopia Wi-Fi Gateways with VeriFone Payment Systems.

LAS VEGAS -- Netopia, Inc. (OTCBB:NTPA), a market leader in broadband gateways and service-delivery software, announced today that it has introduced two bundled products for the merchant market in conjunction with VeriFone Holdings, Inc. (NYSE:PAY), a leader in global electronic payments, at the Electronic Transaction Association Annual Meeting and Expo, currently underway in Las Vegas. The Netopia/VeriFone Hot Spot Solution and the Netopia/VeriFone Wi-Fi Point-of-Sale Solution are available through distributors immediately.

Netopia's Wi-Fi Hot Spots integrated with VeriFone payment systems provide merchants with a complete and flexible hot spot solution. Unlike other proprietary hot spots, Netopia Hot Spots give venues total control over their Wi-Fi offering. Merchants can determine who can access the wireless network, how long they can stay connected, and whether Wi-Fi access is free of charge or available for a fee. And they can change the parameters of access to support marketing initiatives or respond to usage patterns. Merchants generate a receipt on their VeriFone payment system with a unique access code for each patron. Netopia Hot Spots are also the only hot spots to offer family-friendly surfing, which enables merchants to prohibit patrons from accessing Web sites with objectionable content to maintain a retail environment appropriate for all ages.

"VeriFone applauds Netopia's innovative approach of leveraging our secure payment solutions to make consumer Wi-Fi hot spot services viable for even the smallest merchant," said Paul Rasori, vice president of product marketing at VeriFone. "The economic benefits of using broadband communications for payment processing are well understood by the merchant community and integrating these new Wi-Fi services enhances the business case even further."

"The movement in the retail community toward extending broadband throughout their establishments makes it easy for merchants to take advantage of traffic-driving and revenue-generating applications like wireless hot spots," said Ray Smets, senior vice president of sales and marketing for Netopia. "Integrating our Netopia Hot Spots with payment terminals from the number-one manufacturer allows retailers to leverage their existing broadband connection and VeriFone Point-of-Sale terminals to easily add and operate wireless hot spots in their venues."

About Netopia

Netopia, Inc. is a market leader in high-performance broadband customer-premises networking equipment and carrier-class software for the remote management of broadband services and equipment. Netopia's gateways feature advanced technology for triple-play and IPTV services and remote manageability to ensure service delivery. Netopia also offers remote device management and broadband-enabled services and software for carriers, service providers, and enterprises, enabling support and value-added services across the home or business network. Netopia has established strategic distribution relationships with leading carriers and broadband service providers, including AT&T (formerly SBC Communications), BellSouth, Covad Communications, eircom, Swisscom, and Verizon.

Headquartered in Emeryville, California, Netopia's common stock is listed for quotation on the OTC Bulletin Board (OTCBB) System under the symbol "NTPA." Further information about Netopia can be obtained via phone at [phone], fax at [phone], or on the Web at www.netopia.com.

All company names, brand names, and product names, are trademarks of their respective holder(s).