NETCOM HITS 200,000 MILESTONE

INTERNET ACCESS PROVIDER ANNOUNCES 174% INCREASE IN SUBSCRIBERS SINCE
BEGINNING OF YEAR

San Jose, California, August 25, 1995 -- NETCOM On-Line Communication
Services, Inc. (NASDAQ:NETC) today reported that earlier this week it had
achieved a subscriber base of 200,000. The corporate milestone represents
a 174% growth rate in subscription levels since the beginning of the
year.

In addition to the on-going success of its award-winning NetCruiser
software, growth rates have been bolstered by several strategic
relationships the company has recently announced. NETCOM has signed
resale/distribution agreements with LDDS WorldCom, Ameridata, Netscape
Communications, and Quarterdeck, making its Internet services available to
a much larger audience. In addition to the firm's continually expanding
distribution channels, NETCOM attributes strong subscriber growth to other
improvements in the core aspects of its business. The company has recently
upgraded its 24 hour a day/7 day a week customer support center, continues
to aggressively launch local access sites with nationwide availability of
28.8 Kbps dial-in speed, and has maintained its $19.95/month flat-rate
value pricing plan.

"We have invested in resources which provide our subscribers with a
complete Internet solution integrating ease of use, value pricing, direct
local access nationwide and 24 hour person-to-person customer support,"
said John Zeisler, NETCOM senior vice-president of marketing. "Our strong
subscriber growth rate is one indication that the market is continuing to
react positively to our on-going efforts."

Earlier this week the company launched NetCruiser 2.0, an improved version
of the company's award-winning Internet access software. Guiding the
re-design of the product was input from the company's expanding customer
base as well as the philosophy that utility and not novelty of the
Internet will drive its growth moving forward. To that end the company has
improved its World Wide Web browser and has included access to three
leading services which help its users find valuable and meaningful content
on the Internet. NETCOM subscribers now have one-button access to The
McKinley Internet Directory, Clarinet's e.News services and InfoSeek's Net
Search Service. NetCruiser is available directly from NETCOM as well as
over 5,000 retail outlets nationwide and through bundling agreements with
leading computer, hardware, software and publishing companies.

The Company currently has one of the largest Internet dial-up networks in
the U.S., with local access in over 175 metropolitan areas. Additionally,
NETCOM provides a full spectrum of value-priced Internet services for
businesses, from dial-up to high speed digital T1 and 56 Kbps connections
for enterprises.

NETCOM On-Line Communication Services, Inc. provides high-quality, low-cost
nationwide Internet access over its own high-speed digital network. A
public company since December 1994, NETCOM has experienced substantial
growth in both its subscriber base, with over 200,000 subscribers, and the
number of access points, by aggressively building a nationwide network.
Since NETCOM operates its own network employing TCP/IP, the backbone
technology of the Internet, subscribers benefit from a stable, reliable
net work at low prices, in addition to a Windows-based, user-friendly
interface. Internet users can learn more about the company online at:
http://www.netcom.com/.
 
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