NETCOM REACHES 400,000 SUBSCRIBER MARK

Leading Internet Service Provider Reports Fifth Consecutive Record Growth
Quarter Since IPO; Adds 83,500 Subscribers in 1st Quarter

San Jose, California, April 10, 1996 -- NETCOM On-Line Communication
Services, Inc. (NASDAQ:NETC), a leading Internet Service Provider, today
announced the sign-up of its 400,000th subscriber. The milestone comes on
the heels of another record growth quarter, which ended March 31, 1996
with 83,500 new subscribers. The quarter-end result represents a 27%
growth rate over the previous quarter and a 243% increase in subscribers
in the past 12 months ending in March with 391,000 total subscribers.
Since going public in December 1994, the Company has continually posted
record subscriber growth in the face of increased competition in the
market, and maintains its position of owning the largest customer base of
any independent Internet Service Provider. In calculating this figure,
NETCOM excludes all complimentary or trial accounts.

"We believe this business is more than just providing Internet dial- tone."
said David Garrison, NETCOM chairman and chief executive officer.
"Initially, some companies may offer access only with a browser to attract
new users to the Internet, but our experience indicates that active
Internet users want more than just access to the Net. In addition to
high-quality service at a value-point price, they are looking for a
provider to help them make sense of the maze of information available to
them on the Net. Our record growth is a reflection of NETCOM's ability to
deliver a complete value-added solution."

The company attributes its rapid growth to a number of factors including
enhancements to its open software platform and licensing agreements with
leading software manufacturers, introduction of value-added services to
enhance the user's Internet experience, introduction of true flat-rate
pricing, expansion of distribution channels to reach individuals and
businesses, expansion of its high-speed network into over 230 metropolitan
areas at 28.8 kbps, and 24x7 customer support programs.

In March, the Company introduced it Personal Services designed to help
personalize each subscriber's Internet experience. This new portfolio will
be offered free to NETCOM customers as part of their base rate of
$19.95/month for unlimited access to add further value to their NETCOM
subscription. Moving further out of the pack of undifferentiated
access-only Internet providers, NETCOM is offering these value-added
services as part of its strategy to become the complete Internet services
provider. The first available service from Personal Services is Personal
news, which provides NETCOM subscribers with their own daily customized
news source.

The Company continued to develop its NetCruiser platform to accommodate
third party applications, and plans to bring a full suite of client/server
resources to its subscribers by developing additional applications that
leverage its high-speed nationwide network. During the quarter, NETCOM
signed licensing agreements with Netscape and Microsoft to provide
subscribers added choice to better customize their interface to the
Internet.

NETCOM's distribution channels are comprised of direct sales coupled with
key reseller and bundling agreements with a variety of players in
software, hardware, publishing, retail, and education. During the first
quarter, NETCOM announced an important reseller arrangement with SCO, a
leading UNIX software provider. By partnering with some 6,000 of SCO's
resellers, NETCOM expects to grow a very important niche in the business
market.

NETCOM further extended local coverage throughout the United States, and
now provides local access from 230 points of presence. Moving beyond the
U.S., NETCOM launched service into Canada and announced intentions to
provide service in the U.K. during the second quarter of 1996.

In customer support, the Company added capacity by 100% to increase
responsiveness to incoming calls. The 24x7 phone support program was also
augmented by on-line help programs in the form of an extensive
knowledgebase which provides answers to the most commonly asked technical
questions as well as a topic-specific Fax on Demand service. These
automated services have been visited nearly a million times by subscribers
since the end of 1995.

San Jose, California-based NETCOM On-Line Communication Services, Inc. is a
leading international Internet service provider with years f network
experience. Leveraging its own high-speed nationwide TCP/IP-based network,
NETCOM provides a range of value-priced Internet services for individuals
and businesses. NETCOM's complete Internet service offering includes
Personal Services, value pricing, software options, local access, and 24
hour person-to-person customer support. Internet users can learn more
about the company on-line at: http://www.netcom.com.

Certain of the above statements are forward looking statements that involve
risks and uncertainties. Actual results could differ materially as a
result of a variety of factors, including competitive developments, and
risk factors listed from time to time in the Company's SEC reports.
 
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