NETGRAPHE, 9 TELECOM Take on French Internet Market

[Montreal, CANADA] Netgraphe,
a major Canadian French language Internet editor, and 9 TELECOM, a French subsidiary of
TELECOM ITALIA, have reached an agreement in principle for the
creation of a 50/50 joint venture in the Internet sector.

The joint venture’s primary objective is to to position itself among
the top five Internet editors in France as early as 2002.

NETGRAPHE’s editorial experience coupled with 9 TELECOM’s expertise
will likely bring the new company an undeniable advantage based on
its current positioning at the heart of the French Web.

As soon as this Fall, the company will launch an entirely new type of
portal, with a unique concept, for 9 TELECOM’s retail Internet access
clients and for all French Web surfers generally.

For its part, NETGRAPHE will contribute to the new strategic alliance
its assets linked to the Megagiciel and Multimedium Web sites and
will deliver versions of its successful sites — Toile.com, Jobboom.com, and Webfin.com — adapted to the French
market.

The contributions are evaluated at Euro 28 million (US $38
million). The agreement also anticipates that 9 TELECOM will invest
Euro 28 million (US $38 million) in cash in the new company.

The parties expect to reach a final agreement by the end of
September. “This agreement is in line with our objective to conquer
new markets through partnerships with leaders in order to present
French-speaking Europe, a market of nearly 70 million individuals,
with an unprecedented service offering,” said Normand Drolet, NETGRAPHE
president and chief executive officer.

Bernard Marchant, chief executive officer of 9 TELECOM pointed out
that “There is absolute industrial synergy between the two partners
that enables 9 TELECOM to offer its clients, besides very attractive
access conditions, a portal that will rapidly become one of
the most creative and effective in the marketplace.”

“This complementarity results from the Internet editing expertise
built by Netgraphe over the last five years in one of the most
developed markets in this sector on the one hand, and on the other,
from the telecommunications operating know-how of 9 TELECOM (as
well as its presence in and understanding of the French market).”