Oregon Consumers Praise AlwaysOn Network's Broadband Service Using SOMA Networks' Next-Generation Wireless Solution

100 Percent of Trial Users Convert to Paying Customers Within Days of Launch

Chiloquin, OR – November 4, 2002 – Wireless broadband service is generating a 100 percent success rate among paying customers in this rural community, announced AlwaysOn Network and SOMA Networks. Using SOMA Networks' next-generation wireless broadband solution, AlwaysOn Network is offering high-speed Internet access to residents of Klamath County, Oregon, an underserved rural community without other broadband service options, and in the first two months of service has made significant inroads in penetrating the local market.

We could not be happier with the wireless broadband service," said Floyd McCoy, long-time Klamath County resident and one of the first customers to sign up for the service. "The service is always on, it's completely reliable, and it's so easy to use. With dial-up service, surfing the Web used to be a slow, frustrating experience. Now, once I turn on my computer I have instant high-speed Internet access, and I am able to take care of business much more efficiently."

High Customer Satisfaction
Over the summer, AlwaysOn Network began deploying SOMA Networks' wireless broadband system and market tested the service on a small number of customers. In September, when AlwaysOn Network officially launched its commercial service, 100 percent of those initial testers converted to paying customers within the first week. The service provider achieved 3 percent penetration of its primary market in the first three weeks – without implementing any formal advertising or marketing efforts. In two months of operation, AlwaysOn Network has enjoyed a zero percent churn rate, without a single customer terminating service.

"The community response to our service has been tremendous," said Dan Stanton, chief operating officer of AlwaysOn Network. "The system has far exceeded our expectations – in terms of cell coverage, non-line-of-sight capability, and user-friendly installation that does not require any cumbersome external antennas – and customers have been signing up for the service in droves. In underserved markets like Chiloquin, where residents have had to rely solely on dialup Internet access, the demand for our broadband service is overwhelming. We are well on our way to achieving our goal of 30 to 40 percent market penetration."

AlwaysOn Network's customers have expressed particular satisfaction with the system's home gateway functionality, with 15 percent connecting multiple computers to a single subscriber unit. Unlike simple DSL or cable modems, the SOMA system's subscriber unit is an intelligent computing device that provides a firewall, networking, and other gateway functions. More than 15 percent of AlwaysOn Network's customer base consists of small businesses, which especially value these features, and AlwaysOn Network is in discussions with the local high school to enable broadband connectivity in the classrooms and library.

"I have been using AlwaysOn Network's service for two months now, and I am impressed by not only the fast speed and reasonable prices, but also the reliability and zero down time," said Ron Miller, the owner of a small security business in Klamath County. "This wireless broadband system is the most impressive new technology I've seen in a long time."

The Answer for Underserved Markets
Recognizing an unmet need, AlwaysOn Network is targeting areas like Klamath County where the local telephone and cable companies have been unable or unwilling to offer broadband service due to the high costs of deploying DSL or cable modem services in small town and rural environments. "The installation costs for cable and DSL are enormous, as are the costs of servicing those lines with professional technicians," said Stanton. "DSL and cable operators have not found it profitable to serve many rural communities, but with SOMA Networks' next-generation wireless solution, we are able to cost-effectively offer broadband service to residences and small businesses over large coverage areas." AlwaysOn Network's second launch is planned for the central Oregon town of Bend, with service to second- and third-tier markets in Idaho, Hawaii, and the U.S. Virgin Islands planned over the next year.

"Communications infrastructure can be a critical element in the development of rural economies," said U.S. Senator Ron Wyden, who represents Oregon and serves on the Communications Subcommittee of the Senate Committee on Commerce, Science, and Transportation. "With the lowest per capita income in the state of Oregon, it's very welcome news that the people of Chiloquin can now get high speed Internet access."

"It's liberating! I used to work on the computer and never wanted to do the things that are fun because I didn't like waiting in front of the screen for things to download. I have a wonderful, fast Internet connection that allows me to do things quicker and easier," said Mary Kelly, an AlwaysOn Network customer. "I live in a remote area, but I now have the world at my fingertips."

About AlwaysOn Network
AlwaysOn Network is dedicated to providing last-mile wireless telecommunications services to meet the market demands of residential users, schools, and business owners. AlwaysOn Network, Inc., located in Chiloquin, Oregon, is deploying a network of licensed wireless broadband systems to serve selected markets in the United States. AlwaysOn Network, Inc. provides advanced Internet and telephony services employing third-generation technology from SOMA Networks of San Francisco, California. For further information about AlwaysOn Network, visit http://www.AlwaysOnNetwork.net.

About SOMA Networks:
Integrating the latest advances in wireless broadband, distributed computing, and Internet technologies, SOMA Networks' unique system allows anyone to become a full-service telecommunications service provider offering a feature-rich package of carrier-grade voice and broadband Internet services to the residential and small-office market. SOMA Networks offers the only economically viable "last-mile" telecommunications solution for service providers that meets the needs of today's residential and small-office users. Its fully converged system offers ubiquitous service, rapid market entry and scalability, and quick, inexpensive creation of multimedia services. Founded in 1998, SOMA Networks has development centers located in San Francisco, California; Richardson, Texas; and Toronto and Ottawa, Ontario. For more information about SOMA Networks, visit http://www.somanetworks.com.

Media Relations Contacts:
Leslie Hatamiya
SOMA Networks
415.882.6522
lhatamiya@somanetworks.com

Dan Stanton
AlwaysOn Network
541-783-7550
dans@AlwaysOnNetwork.net