Planned immediate activities include the following:

• Continued integration of Microsoft technologies into NetObjects products
• Promotion of NetObjects Fusion 1.0 through the Microsoft SiteBuilder Network (http://www.microsoft.com/sitebuilder/). The first 500 SiteBuilder members to download the product will receive it for free, after which visitors to the SiteBuilder site will be able to download a full functional trial version of NetObjects Fusion for free (online access charges may apply).
• Featuring of NetObjects executives and products at "Microsoft Day" at the Seybold Publishing Conference in San Francisco
• Extensive joint direct-mail campaigns through the SiteBuilder Network and joint Web banner advertising

"NetObjects Fusion 1.0 brings the power of key Microsoft technologies to a broad base of users, builds on the growing success of the Windows® 95 and Windows NT® operating systems with the designer community, and satisfies a unique user need for a visual site-building tool," said John Ludwig, vice president in the Internet platform and tools division at Microsoft. "We are working closely with NetObjects on a series of technical and marketing activities and are looking forward to seeing the company succeed as an innovative Internet player."

Available immediately for Windows 95 and Windows NT, NetObjects Fusion 1.0 is the first smart Web site-building application that combines automated site building, professional-quality design and data publishing. NetObjects Fusion 1.0 provides unique visual support for ActiveX, making it easy for nonprogrammers to integrate ActiveX-based components into Web sites. Advanced site developers can also use VBScript to embed sophisticated functionality into their sites.

"NetObjects is committed to making it easy for people to build Web sites, and Microsoft has a terrific set of technologies and formidable market presence," said David Kleinberg, executive vice president of marketing and sales at NetObjects. "By working together, the two companies can expand the choices available in the marketplace and ensure that leading-edge technologies are easy to use and widely accessible."

NetObjects Fusion 1.0 has taken the Web development community by storm. Since July 29, thousands of customers have downloaded prerelease versions of NetObjects Fusion 1.0. These "NetObjects Fusionaries" have hailed the product's elegance and power, and the quantum leap in productivity the software has given them. Product reviewers such as C/NET and techweb have called NetObjects Fusion "the king of Web publishing tools," noting that "for graphical development in record time, nothing else comes close."

About NetObjects and Microsoft
NetObjects Inc. develops products that enable Web site builders to dramatically improve the design, authoring, publishing and updating of Web sites. NetObjects Fusion™ provides the first visual, site-oriented approach to building Web sites, unlike first-generation, text-based, page-oriented tools. NetObjects Fusion is the first smart Web site-building application that integrates automated site building, professional-quality design and data publishing, thereby lowering the cost, time and tedium of building high-quality Web sites. Founded in 1995 and headquartered in Redwood City, Calif., NetObjects is privately held and funded by Norwest Venture Capital, Venrock Associates and private investors. Information about NetObjects and its products can be found on the World Wide Web at http://www.netobjects.com/ or by calling (888) 449-6400.

Founded in 1975, Microsoft (NASDAQ "MSFT") is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.

Microsoft, ActiveX, Visual Basic, Windows and Windows NT are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

NetObjects Fusion 1.0 is a trademark of NetObjects, Inc.

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