VelocityHSI Adds to Management Team; Names William Vinck Executive Vice President and Chief Operating Officer and Donald Bush Senior Vice President, Human Resources.

Business Editors

WALNUT CREEK, Calif.--(BUSINESS WIRE)--Oct. 11, 2000

VelocityHSI (OTCBB:VHSI), a leading provider of high-speed Internet services for the multifamily apartment industry, today named two senior executives to its rapidly growing management team.

The company said William C. Vinck, who has more than two decades of technology and operations experience, has been named executive vice president and chief operating officer, while Donald D. Bush, who has 25 years of human resources and labor law experience, has joined as senior vice president, human resources.

"Our ability to add these seasoned executives to our management team is an integral element of our growth strategy," said Steve Carlson, VelocityHSI president and chief executive officer. "We recently announced two new significant customers and have a number of other transactions in the pipeline. Bill and Don bring a wealth of experience that will be of great value to our young and fast-growing company," he added.

Vinck, 52, comes to VelocityHSI from Omnipoint Communications Services, a leading wireless telecommunications company, where he was vice president, operations support and chief information officer. Before that, he was senior director, information technology, for Phillips International, and vice president and chief information officer for the American International Group.

Vinck also held technology and strategic planning management positions with S.C. Johnson Wax, Chrysler Corporation and National Steel Corporation. He holds a B.A. degree in Philosophy from the University of Illinois, a MBA from the University of Chicago and a Master of Arts and Ph.D. in Philosophy from DePaul University.

Bush, 59, is an attorney and joins VelocityHSI from Harvey, Pennington, Herting & Renneisen, Ltd. a labor law firm located in Philadelphia, PA. Before that, he was senior vice president, human resources and general labor counsel for Quebecor Printing, a $3 billion company. He also held senior management human resources positions with NYNEX, Harvard Industries and Frequency Engineering Labs, and was a partner at the law firm of Pechner and Dorfman.

Bush holds a B.S. degree from Rutgers University and a J.D. degree from Seton Hall University.

"Bill brings a broad range of skills, including marketing, sales, customer service, financial operations and e-commerce, that are critical to our growth," Carlson noted. "At the same time, Don has extensive experience in all areas of human resources, particularly helping companies develop a solid team of associates," he added.

VelocityHSI

VelocityHSI provides high-speed Internet installation, access and content to the multifamily apartment industry. Currently, the company has systems installed in 37 apartment communities with 10,675 apartment units and has approximately 1,900 subscribers. Its systems deliver Internet access over existing copper telephone wires at up to 1mbps speeds and provide portable e-mail, Web site hosting and local area networks through its proprietary Internet service provider for a low monthly fee of $34.95.

VelocityHSI connects apartment communities and portfolios to provide customized and localized Internet access that benefits residents, property managers and apartment community owners alike. For residents, the service is available through either personal computers or a specially designed television set-top box that is provided by VelocityHSI to residents.

Headquartered in Walnut Creek, California, the company originated as a package of Internet services developed by BRE Properties, Inc. (NYSE: BRE) for its residents. During August, BRE distributed shares of VelocityHSI common stock to BRE shareholders. BRE directly owns and operates 67 apartment comminutes, totaling 18,594 units, in California, Arizona, Washington, Oregon, Utah and Colorado. BRE currently has 13 other apartment communities in various stages of development and construction, totaling 3,123 units, and joint venture interests in 20 additional apartment communities, totaling 4,548 units.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Except for the historical information contained herein, this news release contains forward-looking statements regarding Company performance and is based on the Company's current expectations and judgement. Actual results could vary materially depending on risks and uncertainties inherent to the Company's limited operating history, acceptance of its products and services, competitive factors, rapid technology change and general economic conditions. The Company assumes no liability to update this information. For more details, please refer to the distribution prospectus dated August 8, 2000, filed with the Securities and Exchange Commission.