News Release

@Home Solutions Announces Strategic Investors and Founding MSO Partner

3Com, Cisco, Falcon Communications and Motorola Team with
Apr 08, 1999

3Com, Cisco, Falcon Communications and Motorola Team with @Home Network to Deploy Broadband Internet Services to Small and Mid-Sized Cable Operators and Systems

Access to Approximately 1.6 Million Homes Passed in Alliance to Deliver High-Speed Internet Service, Falcon@Home

REDWOOD CITY, Calif. -- April 8, 1999 -- @Home Network (NASDAQ: ATHM), the leading provider of high-speed Internet services via the cable infrastructure, today announced that it has concluded its first round of financing for @Home Solutions, the recently formed venture to offer turnkey, fully-managed and comprehensive broadband cable Internet services to small and medium-sized cable operators and systems, with leading technology and communications companies. In the joint venture with @Home Network, the companies will invest a total of $20 million in @Home Solutions to help speed the deployment of broadband services to the estimated 15 million homes and millions of businesses passed by small and mid-sized cable operators. Disclosed investors include 3Com, Cisco Systems, Inc. and Motorola, Inc.

Founding Cable Partner

In addition, @Home Solutions today announced an agreement in principle with Falcon Communications, LP (Falcon Cable TV) to deliver high-speed Internet services in key markets. @Home Solutions will have access to approximately 1.6 million homes passed in 26 states for high-speed Internet services. The service will be named Falcon@Home and is planned to begin deployment in 1999. With this founding affiliate relationship, Falcon Cable TV will receive a seat on the @Home Solutions Board of Directors.

"Falcon is committed to delivering advanced communications services to the non-urban markets that form the core of our business," said Marc Nathanson, chairman and CEO of Falcon Communications, LP. "We are excited about being at the forefront of the next generation of communications through our alliance with @Home Solutions. Every citizen in the United States, regardless of the size of community they live in, should have access to high speed modems and services."

Strategic Technology Investors

As part of their investments, 3Com, Cisco and Motorola will collaborate with @Home and @Home Solutions cable affiliates to address the significant financial and technical challenges associated with deploying residential and commercial cable-based Internet services to small and mid-sized markets. @Home Solutions will extend the current @Home Network model, which complements the existing operations of cable operators, by providing services such as financing of cable and network equipment, expanded customer service, billing services, service installation and marketing support.

"New World applications and services delivered through distributed broadband infrastructures represent an exciting growth opportunity in the Internet economy," said John Chambers, CEO of Cisco Systems, Inc. "Our investment in @Home Solutions underscores our commitment to the acceleration of data, voice and video to subscribers worldwide."

Eric A. Benhamou, chairman and CEO, 3Com, added, "More and more Americans will soon be able to enjoy the speed and reliability of cable Internet services. This alliance demonstrates 3Com's commitment to accelerating the development and practical, cost-effective implementation of new broadband networks, making convergence a reality and keeping people more connected."

"Consumers across the nation will experience greater enjoyment and increased productivity from the vast communication capabilities serviced by broadband cable technology," said Robert Growney, president, Motorola, Inc. "Our investment in @Home Solutions demonstrates Motorola's commitment to foster leading communication technologies and services for all consumers."

@Home Solutions is more than a simple connection to the Internet. The joint venture will leverage @Home Network's distributed, intelligent network that utilizes sophisticated caching and replication technologies to create a high-performance "parallel" Internet. With this network, @Home will be able to cost-effectively scale its network capacity to support ubiquitous broadband services in both metropolitan and rural markets throughout North America.

"3Com, Cisco, Falcon and Motorola's involvement in @Home Solutions willprovide a tremendous boost to our plans to deliver Web-based broadband services to small and mid-sized cable systems - reducing the digital divide between metropolitan and rural markets," said Tom Jermoluk, chairman and CEO, @Home Network.

"Response to the @Home Solutions opportunity has been extremely positive. We are in active discussion with dozens of cable operators who are very interested in providing high-quality, differentiated @Home and @Work services in their markets," said Dean Gilbert, senior vice president and general manager of @Home Network. "By leveraging its strategic partnerships, nationwide backbone, and economies of scale, @Home Solutions will enable cable operators to meet the demands of their customers in rural markets by speeding their time to market with cable Internet services."

About @Home Solutions

@Home Solutions is designed for small and mid-sized cable operators who want to maintain their individual market presence, and yet realize the benefits of a nationwide consortium. @Home Solutions will enable affiliated cable operators to benefit from the scale and leverage afforded by @Home Network's nationwide backbone, compelling content, and strategic technology partnerships.

About Motorola's Multimedia Group

Motorola's Multimedia Group (MMG), a division of the Internet and Networking Group (ING) develops, manufacturers and markets systems for the convergence of voice, data and video communications services over advanced broadband multimedia platforms. With more than 500,000 cable modems deployed around the world, Motorola is leading the trend in enabling an increasing number of businesses and individuals to access the Internet more quickly, easily and securely than ever before. Motorola has shipped infrastructure to support nearly 4 million cable modem subscribers worldwide. Motorola is a global leader in advanced electronic systems and services. It liberates the power of technology by creating software-enhanced products that provide integrated customer solutions and Internet access via wireless and satellite communications, as well as computing, networking and automotive electronics.

Motorola also provides essential digital building blocks in the form of embedded semiconductors, controls and systems. Sales in 1998 were $29.4 billion. For more information, visit

About Falcon Communications, LP

Falcon is one of the nation's most experienced cable operators specializing in non-urban communities. Having managed cable television systems for more than 20 years, Falcon is the largest cable TV owner in the United States solely devoted to these types of markets. This is a business strategy that Falcon first implemented in 1975. As one of the nation's largest Multiple System Operators, Falcon serves more than one million customers, in more than 800 communities in 26 states.

About @Home Network

Based in Redwood City, California, @Home Network (NASDAQ: ATHM) distributes high-speed, openly accessible Internet and Web services to residences and businesses using its own network architecture and a variety of transport options including the cable industry's hybrid-fiber coaxial infrastructure. The cable connection provides users significant increases in speed over conventional Internet services. Leveraging the "always on" attributes of cable, @Home allows for unique multimedia applications that go beyond current Web experiences. Individuals seeking additional information about availability and subscription can refer to the @Home Network Web site. Since its founding in 1995, @Home Network has reached affiliate agreements with twenty leading cable companies-worldwide, including AT&T Broadband and Internet Services, Bresnan Communications Company, Cablevision Systems Corp., CasTel, Century Communications, Charter Communications, Cogeco Cable Inc., Comcast Corporation, Cox Communications, Garden State Cable, Insight Communications, InterMedia Partners, Jones Intercable, Lenfest Communications, Midcontinent Cable Co., Palet Kabelcom, Prime Cable, Rogers Cablesystems Limited, Shaw Communications, and Videon Cablesystems, Inc.

About 3Com

With more than 200 million customers worldwide, 3Com Corporation connects more people to information in more ways than any other networking company. 3Com delivers innovative information access products and network system solutions to large, medium and small enterprises; carriers and network service providers; PC OEMs; and consumers. 3Com More connected.. For further information, visit 3Com's World Wide Web site at or the press site at

Cisco Systems

Cisco Systems, Inc. (NASDAQ:CSCO) is the worldwide leader in networking for the Internet.

The @ logo, @Home and @Home Network are trademarks of At Home Corporation and may be registered in certain jurisdictions. All other brands and product names are trademarks of their respective owners.

3Com is a registered trademark and More connected is a trademark of 3Com Corporation.

Cisco, Cisco Systems, and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. in the U.S. and certain other countries. All other trademarks mentioned in this document are the property of their respective owners.