Prodigy Promotes DSL Content

Prodigy Communications Corp. hopes to
capitalize on the popularity of its digital subscriber line service with
the launch of its broadband centric Web site.

The site, available only to Prodigy’s 2.6 million
customers, features streaming media content on nine channels ranging from
news to online games. It plans to add several new channels by the end of
the year.

Susan Sachatello, Prodigy chief marketing officer, said the Internet
Service Provider plans to leverage the success of its current DSL market,
which recently surpassed the 800,000 mark for lines in service.

“Prodigy is now the largest consumer/small business retail ISP in the
country thanks to our recent alliance with SBC Communications Inc., with over 246,000
Basic DSL Internet Service customers,” Sachatello said.

“We plan to capitalize on this relationship not only for growth of our DSL
subscriber base, but to lead the way for next-generation, broadband-enabled
technologies such as exemplified with the launch of our DSL homepage>”
Sachatello added. “This homepage is one of several new moves on Prodigy’s
part to accelerate our broadband offering, and solidify our position in the
arena.”

Charles Roesslein, Prodigy president and chief executive officer, said the
homepage lets its DSL customers fully realize what high-speed Internet
access has to offer.

“Our new DSL homepage is just the foundation for our ongoing efforts to
make our members’ broadband experience compelling and robust,” Roesslein
said. “Prodigy’s strategy in being the country’s number one high-speed
consumer Internet service provider is not only to aggregate the best in
major media content, but also to deliver customized and local applications,
further realizing the power and uniqueness of the Internet as an
alternative to traditional media. We envision Prodigy members using their
DSL homepages as an ‘always on’ information and entertainment resource.”

According to Prodigy’s second quarter results it has 246,000 DSL customers,
an increase from last year, which can be credited to its partnership with
SBC and acquisition of FlashNet Communications Inc. .

“Prodigy made significant strides in strengthening its new role as the
nation’s largest provider of consumer and small business high-speed DSL
Internet services,” Rosslein said of the second quarter results. “As
expected, the acquisition of FlashNet and our strategic alliance with SBC
were both recently completed, allowing Prodigy to acquire their combined
subscriber bases of more than 900,000 additional customers while benefiting
from our combined sales and marketing distribution channels.”

Prodigy has been aggressively pursuing DSL customers in its markets with
promotions to lure customers to its services.

Prodigy and SBC teamed up earlier this month to market DSL service with
customers receiving a free DSL-enabled Compaq Computer Corp.
computer if they signed a two-year contract with Prodigy for DSL Internet
access. In June, ZoneAlarm firewall software by Fire Zone Inc., was given out to DSL
customers as a free download.

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