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Concentric Earns $13.7 Million Revenue 4Q 1997

Concentric Network Corp. (Nasdaq: CNCX), provider of network computing technologies and services, reported it earned $13.7 million in revenue fourth quarter 1997, an 84% increase compared to results posted the same period last year.

The company reported revenue of $7.4 million for the fourth quarter of 1996.

Of its total revenue for 4Q 1997, 32% was generated through Concentric's affiliation with WebTV Networks ("WNI"). WebTV Networks, provider of Internet access services via set-top devices, named Concentric in July 1996 as a preferred network service provider of dial-up access services (this relationship has since been renewed).

Additional customers include select Bay Area residents for Concentric's ADSL service; companies such as InfoGear Technology, First Data, and PlanetWeb for its virtual private network services; and Bloomberg LP for the delivery of Bloomberg's television news content to PCs via the Net.

"Our record fourth quarter results are early confirmation that Concentric's value added services strategy is working for both the Company and its customers. As usage sensitive enterprise traffic continues to grow, the semi-fixed cost characteristics of the network services business will result in operating leverage and thus, improved financial results," said Henry R. Nothhaft, President and Chief Executive Officer of Concentric.