Shannahan brings over 20 years of experience in building solid financial foundations for high-growth public software companies such as Broderbund Software and the strategic consulting and accounting firm, KPMG Peat Marwick LLP.

"We believe that Mike Shannahan's extensive experience and vast financial knowledge base are a perfect fit for NetObjects' next growth stage," said Samir Arora, NetObjects' chairman and chief executive officer. "Having Mike on our core executive team will be invaluable in our efforts to evolve NetObjects from a successful start-up into an established, world-class company."

"Under the leadership of its existing management, NetObjects has successfully positioned itself as a leading player in the Internet software market," said Rex Golding, managing director at Morgan Stanley. "This is an opportune time for NetObjects to strengthen its core management team with the addition of people of Mike Shannahan's stature, and set the stage for pursuing the most suitable financial option in the future."

Prior to joining NetObjects, Shannahan served as vice president of finance and chief financial officer at Broderbund Software Inc., where he managed all of the corporate financial functions as the company's revenue increased from $112 million to approximately $200 million. Before joining Broderbund, Shannahan spent 15 years at KPMG Peat Marwick LLP, where he was a partner in the software segment of the company's information, communication and entertainment line of business. Shannahan holds a bachelor of science in business administration from Rockhurst College, Missouri and is a certified public accountant.

"NetObjects has succeeded in establishing itself as one of the most impressive start-up's in the Valley," said Shannahan. "The company's excellent product line, extremely impressive revenue stream and team of dedicated employees ensure a bright and financially viable future. I am looking forward to spearheading the company's financial functions as it prepares to enter the next major stage of growth."

About NetObjects
NetObjects, Inc. is a privately-held company that is funded by IBM, Perseus LLC, AT&T Ventures, Norwest Venture Capital, Venrock Associates, Rae Technology LLC and private investors. NetObjects' partners include Apple Computer ( AAPL), AT& (NYSE: T), IBM (NYSE: IBM), Microsoft (NASDAQ: MSFT), Netscape (NASDAQ: NSCP), Sun Microsystems' Javasoft (NASDAQ: SUNW) and UUNET (NASDAQ: WCOM).

NetObjects Fusion is the first smart Web site building application that integrates automated site building, professional quality design and publishing, thereby lowering the cost, time and tedium of building high-quality Web sites. NetObjects Fusion has won several awards including CNET's 1997 Internet Excellence Award for Best Web Design Product and PC Magazine's Editors Choice award. More information about NetObjects can be found at www.netobjects.com.