REDWOOD CITY, Calif., Oct. 30, 2000—NetObjects, Inc. (NASDAQ: NETO) a leading provider of e-business solutions and services, announces NetObjects Matrix, an integrated suite of online services that enable small businesses to take advantage of the Internet to expand and improve their business. NetObjects Matrix is the first set of online services designed to be distributed by business service providers, who have a vast reach into the large small business marketplace and need a suite of online services to provide to their customers.

NetObjects is targeting large, established service providers such as hardware vendors, telecommunications carriers, Web hosting companies and ISPs that want to provide online services to small business and can reach the majority of the large, yet fragmented small business market. The majority of the world’s 50 million-plus small businesses have yet to establish an online presence. Using NetObjects Matrix, these service providers can offer essential online services to small businesses, driving subscription-based revenue through their own trusted brands.

"Small businesses and business service providers value simplicity and time,” said Helen Chan, research analyst, The Yankee Group. “Although many service providers want to enhance their relationships with small business customers by offering relevant, value-added Web services, they lack the time and resources to integrate these services from multiple vendors. Small businesses look to a trusted business service provider for a range of business solutions that will help them run their businesses more efficiently. As such, we believe services like the NetObjects Matrix platform are positioned to be a compelling solution that can assist business service providers in delivering Web services to small businesses timely and effectively,” Chan said.

NetObjects has recently announced distribution agreements of NetObjects Fusion with service providers such as Dell, IBM, EarthLink, Concentric and Deutsche Telekom/T-Online, providing the largest market reach to small businesses. NetObjects Matrix Services will be available immediately from these partners through the NetObjects Fusion Online View.

In 1996, NetObjects introduced NetObjects Fusion, the first Web site building software application, which revolutionized the Internet by bringing over four million businesses online and winning over 75 awards. As the Internet now makes it faster and easier to provide application services to small business, NetObjects Matrix is positioned to be the next killer application for the Internet, combining the unprecedented power of the business service providers’ brand and reach, with the depth and ease-of-use of NetObjects solutions.

Market Opportunity
Research firm IDC reports show that Web spending by small and medium-size businesses will be growing at exceptional levels—45 percent annually, from $19.6 billion in 1999 to more than $85 billion in 2003.

“We understand that small business owners are interested in buying bundled Internet solutions from companies familiar to them,” said Steve Mitgang, executive vice president marketing of NetObjects. “NetObjects Matrix will help our partners provide a comprehensive and extensible suite of services that allow the small business to build their Web sites, engage in e-commerce and, bottom line, grow and manage their business.”

NetObjects Matrix is comprised of three components, each addressing specific needs of today’s business service providers.

NetObjects Matrix Platform
NetObjects Matrix Platform is a complete hosted services framework that allows business service providers to offer a suite of integrated online services. The Platform is highly scalable and reliable, and uses XML and server-side Java to ensure openness and interoperability, allowing new online services to be easily integrated into the offering. The NetObjects Matrix Platform offers True Integration—seamlessly embedding with the business service provider’s environment, allowing the provider to enhance and add services into the future.

The platform supports multiple publishing standards such as HTML, XML and WML, enabling business service providers to support multiple devices including PDAs and digital cellular phones. Providers can customize the NetObjects Matrix Platform to offer unique combinations of online services to better serve the specific needs of their small business customers.

NetObjects Matrix Builder
NetObjects Matrix Builder is the first Web-based, WYSIWYG, click-and-edit online page layout editor and site builder available exclusively through service providers. NetObjects Matrix Builder is open and extensible, allowing essential online services from NetObjects along with external vendor services such as e-commerce, scheduling, and B2B marketplaces, to be seamlessly integrated.

NetObjects Matrix Builder is designed to be used by small business customers with different skill and resource levels. Simple sites can quickly be created using a step-by-step wizard. The WYSIWYG builder offers a more robust and complete site-editing environment for business users and professional Web site consultants.

NetObjects Matrix Services
Through NetObjects Matrix Services, business service providers help small businesses manage and grow their business.

NetObjects Matrix Services include:

• Customer Interaction Services. Promotes interaction with site visitors. Services include message boards, custom polls, visitor counter and personalized messaging.
• Reporting and Management Services. Provides advanced site tracking and analysis. Services include real-time reports, profiling visitors, site monitoring and Web site management.
• Marketing Services. Delivers site promotion and marketing solutions. Services include online advertising management, search engine registration, banner exchange and online marketing.

The NetObjects Matrix hosted services platform is built on leading Web technology from trusted vendors such as Sun, Microsoft, Red Hat, Oracle, Veritas and Cisco. NetObjects Matrix can seamlessly integrate with the service provider’s network and can be installed in the provider’s hosting data centers, or run transparently as a remotely hosted application. NetObjects Matrix Services will be available through Web browsers on popular desktop operating systems including Microsoft Windows, Apple Macintosh, Sun Solaris and Linux.

NetObjects Matrix Availability
NetObjects Matrix is available to business service providers immediately.

Voce Communications, 650-322-4600

© 2000 NetObjects, Inc. All rights reserved. NetObjects and NetObjects Fusion are registered trademarks, and NetObjects Collage, NetObjects Authoring Server and GoBizGo are trademarks of NetObjects, Inc. All other brand and product names may be trademarks or registered trademarks of their respective companies.

This press release may contain forward-looking statements within the meaning of the federal securities laws. Such statements can be identified by the words "believes", "anticipates", "plans", "expects", and similar expressions. These forward-looking statements include, without limitation, statements about the market opportunities for Web site building software and services, our strategy, and competition. These forward looking statements do not constitute assurances regarding our future operating results, including the operations of our online services business, cash flows, and financial condition. The market for online Web-based small business services is new and extremely competitive. Our success in this business will depend on many factors, including our ability, or the ability of our distribution partners, to attract substantial numbers of paying subscribers for these services. We cannot be assured of generating a significant amount of revenue or earning a profit from the sale or license of these services. Our actual results could differ materially from those expressed or implied by these forward-looking statements due to various factors, including the risk factors described in our Form 10-K, Form 10-Q and other periodic reports filed with the SEC pursuant to the Securities Exchange Act of 1934. We undertake no obligation to update publicly any of these forward-looking statements.