Quantum Leap Communications Launches Customer Development Group in San Francisco; Appoints Internet Veteran Chris McCarthy As Managing Director.

CHICAGO--(BUSINESS WIRE)--Oct. 18, 1999--

Quantum Leap Communications, a subsidiary of Leapnet, Inc., (NASDAQ: LEAP), a leading Internet development and advertising company, today announced it is focusing on managing customer relationships on the Internet through its new Customer Development Group based in San Francisco. The new office is being launched in response to growing demand for expertise in relationship marketing on the Internet. The company also announced the appointment of Christopher McCarthy as Managing Director of the San Francisco office for Quantum Leap.

In commenting on the new Customer Development Group, Frederick A. Smith, Leapnet Chairman and CEO said, "Clients are growing more sophisticated in the pursuit of a long-term business strategy that involves building relationships with their customers. This new Customer Development Group expands upon the foundation Quantum Leap has built with its consumer-focused approach to Internet development and advertising. We are pleased to welcome Chris and know that his expertise in this highly specialized area of customer relationship management will enhance the services we are able to offer our clients."

Mr. McCarthy joins Quantum Leap from his most recent post as the President of Experience Architects LLC, a San Francisco-based consultancy that develops online customer experience strategies and online relationship marketing programs. His work has included efforts with Peppers & Rogers Group/Marketing 1to1 to introduce clients to web-based relationship marketing and customer acquisition strategies. Mr. McCarthy served as head of strategic services at Avalanche Solutions and Red Sky Interactive, both part of Omnicom Group's interactive agency holdings.

At both companies, he developed strategy, new business and account service departments. His clients included Warner Bros., Nike, Guardian, NBC, Price Waterhouse and Sega. He also spent several years at Ogilvy & Mather Direct/Interactive, New York, where he was part of the company's early interactive group. Mr. McCarthy initiated and created the first-ever advertising agency site on the World Wide Web in March 1994. At O&M, he worked with large marketers on their early interactive efforts, including Duracell, IBM and American Express, for which he won a Silver ECHO award.

"Companies must bridge the gap between themselves and their customers using new technologies," said Bruce Kasanoff, President of Accelerating1to1, (http://www.accelerating.com), a spin-off of Peppers & Rogers Group that focuses on new relationship tools. "It is critical to understand each consumer, specifically what motivates them and how they experience each interaction. Chris McCarthy is one of the few who knows how to bring together consumers and technology."

Debra Bean, Quantum Leap Senior V.P. and Managing Director, said, "Chris McCarthy is one of the best e-commerce and Internet strategists in the industry. He has been working with clients for many years as this medium has evolved and his insights into relationship marketing will be invaluable for our clients who wish to maximize their customers' online experience. We are fortunate to be expanding our operations with an asset such as Chris."

"Quantum Leap is staffed with some of the smartest and most innovative people in the business; they are among the few that understand the importance of customer experience and how digital tools, like e-mail and the web, shape the user experience and perception of a company's brand," McCarthy said. "To be successful, companies must build dialogues and relationships with their customers through these new technologies. We are going to make sure that there is a creative, emotional consideration--that there is a positive customer experience in these interactions."

An active participant in industry trade groups, Mr. McCarthy was an early member of the new media community in New York. As part of the World Wide Web Artists Consortium, he led its Interface + Design group from 1995 to 1997. He has been a source of commentary to publications such as Advertising Age, Adweek and the New York Observer. Mr. McCarthy participated in panel discussions on new media and advertising for SIGGRAPH, Internet World, and Adweek's @dTech forum. He has lectured on the subject at Princeton University, UC Berkeley's Haas School of Business, Columbia University, New York University and to the Direct Marketing Association.

Quantum Leap Communications, a subsidiary of Leapnet, Inc. (Nasdaq: LEAP) is dedicated to inventing outstanding experiences for consumers on the Internet. Quantum Leap combines award-winning design, years of technical experience and a heritage of marketing discipline to provide creative solutions for clients including Wal- Mart Stores, SAM's Club, American Airlines, Ernst & Young, MSNBC.com, MSN Slate, MSN Encarta, MSN Internet Access, Morningstar and the University of Chicago Graduate School of Business. More information on Quantum Leap Communications can be found at http://quantum.leapnet.com.

This press release contains forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties. A number of important factors could cause the Company's actual results, performance or achievements for fiscal 2000 and beyond to differ materially from that expressed in such forward-looking statements. These factors are set forth in the Company's filings with the Securities and Exchange Commission and include, without limitation, material changes in economic conditions in the markets served by the Company's clients, competition in the Company's industry, uncertainties relating to the developing market for new media, changing technologies, seasonality and the Company's dependence on key clients and projects and key personnel. Loss of a key client or a significant reduction in business from a key client could have a significant adverse effect on the Company's business and results of operations.