@Home Network Exported to Japan

@Home Network Wednesday formed a joint venture with
Jupiter Telecommunications,one of Japan’s leading cable operators, and trading firm Sumitomo Corp.

@Home Network, J-COM and Sumitomo will
form a new entity named @Home Japan. Initial plans of the trio include
developing and marketing a Japanese version of @Home’s cable Internet
service for Asia that will launch by the year 2000.

@Home will own 42.9 percent of the Japanese venture, which will be valued at 2 billion yen (nearly US$17 million) while Sumitomo and Jupiter will have stakes of 21.4 percent and 35.7 percent respectively.

In order to deliver the Japanese high-speed cable service to their
subscribers in a highly fragmented market, @Home Japan has entered into
distribution agreements with J-COM and Sumitomo. @Home Japan will leverage
@Home Network’s technology, content, systems and operating expertise to
create a Japanese broadband Internet service.

J-COM and Sumitomo have agreed to commit their combined 5.1 million
households currently served with cable access, under the terms of the
agreement. The commitment represents potential cable Internet access
delivery to more than 10 percent of Japanese households.

The @Home Japan group is reported to have initiated discussions with
additional cable operators, in respect to their joining @Home Japan as
equity shareholders or distributors.

“@Home’s technological and content expertise combined with our local
broadband networks, position @Home Japan to become the clear leader in
delivering high-speed Internet services in Japan,” said Tsunetoshi
Ishibashi, Jupiter Telecommunications president.

“@Home is already transforming the Internet into a viable, vibrant mass
medium in North America and Europe,” said Atsushi Nishijo, managing
director and general manager of Sumitomo’s media services division.

Nishijo noted that “@Home’s delivery of high-speed Internet services
represents one of the most exciting opportunities for cable operators
today. @Home Japan will provide turnkey service to cable operators here,
enabling them to exploit this opportunity quickly and profitably.”

According to Japan’s Ministry of Posts & Telecommunications Internet
penetration in Japan is growing very quickly. The percent of households
with access to the Internet nearly doubled in Japan during the last 12
months, reaching about 11 percent of the market as reported at the end of March.

“With roughly 15 million Internet users, Japan is an extremely promising
market for high-speed cable Internet services and a tremendous next step in
@Home’s international expansion,” said John O’Farrell, @Home Network’s senior vice president of international operations.

Jupiter Telecommunications is a joint venture between majority owner
Sumitomo Corporation and Liberty Media
International Inc.
Founded in January 1995, J-COM currently provides cable
television services to 348,000 homes in Japan and will own 36 percent of
@Home Japan.

Sumitomo Corporation is one of the world’s leading traders and distributors
of commodities, industrial goods, and consumer goods. The trader will
maintain 21 percent of @Home Japan ownership.

Redwood City, California-based @Home Network distributes high-speed, cable
Internet access and web services to residences and businesses using its own
network architecture.

Founded in 1995, @Home Network maintains affiliate agreements with 21 cable
companies-worldwide to provide access for customers in the US, Canada, the
Netherlands and Japan. The @Home network will maintain a 43 percent stake
in the Japan @Home business venture.

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