"When we launched our service, many were skeptical that NetZero could attract a critical mass of users or entice significant advertisers," Goldston said. "Three million users in less than 15 months proves that people are continuing to gravitate toward NetZero."

NetZero began offering free Internet access and free e-mail in October 1998. Since its initial launch, the free ISP has expanded coverage to more than 2,000 cities nationwide.

NetZero aligned with national providers including GTE Internetworking (GTE), Level 3 Communications Inc. (LVLT), PSINet Inc. (PSIX), ZipLink (ZIPL), ICG Communications Inc. (ICGX) and NaviNet Inc. to fuel their nationwide service expansion.

Goldston credited NetZero's (NZRO) success to the quality of service the national ISPs provided and their user-friendly Web interface.

"NetZero users don't sacrifice quality when they sign up for our free service," said Goldston. "NetZero strives to provide consumers with reliable Internet connections, multiple levels of customer service, and user-friendly navigational tools."

The NetZero business model is built around the company's proprietary target advertising technology. The program is designed to deliver relevant advertising messages to NetZero users, based on their personal interests, demographics and online behavior.

"The two original promises of the Internet were free access for consumers and the potential for one-to-one marketing for advertisers," Goldston said. "NetZero has made this promise a reality and we will continue to deliver even more."

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