Net Nanny's Award-winning PC and Internet Filtering Software Now Being Distributed by GTE to new Subscribers of its GTE.net Service

Bundling arrangement gives consumers efficient way to try out and then purchase child protection software

BELLEVUE, Wash.- Net Nanny Software International Inc. (NNS.V, NNSWF), announced today that GTE Internetworking will distribute a fully-functional 30-day evaluation copy of Net Nanny v3.1 software to all new GTE.net subscribers through their Internet access CD's. Customers can also purchase this software online through GTE.net's home page at http://www.gte.net/hotlinks/safety/nanny.html.

Net Nanny is filtering software that works on as well as off the Internet. The program supplies lists of "good" and "bad" online addresses and also allows users to develop their own personalized screening lists containing site addresses, words, phrases and subjects. By filtering out content which is objectionable, users may help prevent children from exposure to material that is meant for mature adults, and provide a safer environment with content that is more appropriate for children to view.

"GTE is a leader among a growing number of ISPs and other concerned parties who understand the importance of getting software such as ours directly into the hands of their customers," said Gordon Ross, president and CEO of Net Nanny. "Child advocates, law enforcement, Congress, state legislatures and ISPs all agree that filtering software can be an important tool for parents to have at their fingertips as their children go online. GTE's large and growing subscriber base now has an easy and risk-free way to benefit from the control and flexibility that Net Nanny provides."

GTE will derive a percentage of the sales revenue from each purchase generated through this direct sales URL program. The distribution deal, which is expected to generate healthy sales and increased visibility for Net Nanny, is a renewable, one year agreement and marks an important step in giving parents easy access to flexible and powerful tools for protecting their children from receiving inappropriate content on the Internet.

"GTE considers child safety and freedom of choice very serious matters - that's why we chose to bundle Net Nanny software on GTE.net's Internet access CDs," said David Schnitzer, marketing manager for GTE Internetworking. "Net Nanny provides our subscribers with control over their Internet experience and allows them to choose which information can be sent or received from their own computers. Providing Net Nanny is another way that GTE sets itself apart from other ISPs who do not offer filtering alternatives or offer a 'one-size-fits-all' solution."

Net Nanny can be easily downloaded to your computer for only $26.95 per copy. The program provides the following benefits:

LEGISLATIVE UPDATE

In October 1998, the U.S. Congress passed two measures (Child Online Protection Act (CDA II) - Commerce, State, Justice Appropriations Bill - and Title 11, Sections 1100-1104 of the Omnibus Budget Appropriations Bill - "Moratorium on Certain Taxes") with language requiring Internet Access Providers to offer their subscribers free or fee-based filtering software, and/or information about such software.

About GTE Internetworking

GTE Internetworking, a unit of GTE Corporation (NYSE:GTE) offers customers, from consumers to Fortune 500 companies, a full spectrum of integrated Internet services using IP networking technologies. GTE Internetworking delivers complete network solutions, including dial-up and dedicated Internet access, high-performance Web hosting, managed Internet security, network management, systems integration, and Web-based application development for integrating the Internet into business operations. GTE.net, the dial-up Internet access provider for GTE Internetworking, was launched in the summer of 1996. GTE.net currently has over 600 nationwide local points of presence and services over 700,000 dial-up accounts. GTE Internetworking draws upon its expertise in funded research and development of advanced technologies, including satellites, digital radio, multigigabit routers, security, and speech, and GTE's strong existing telecommunications services, including local and long distance, wireless, paging, video, and Internet. GTE is one the world's largest telecommunications companies and a leading provider of integrated voice, video and data services. More information about GTE Internetworking and GTE Corp. can be found on the Internet at http://www.gte.com.

About Net Nanny Software International, Inc.

In January 1995, Net Nanny Software International Inc. introduced the first filtering software product of its kind. Today, Net Nanny and NNPro for Networks continue to be the preferred choice for parents, schools, and businesses that want flexible, editable software tools and free databases for protecting their families, their organizations and their digital data. Currently, over 400 online partners concerned with the safety of children and digital data bundle and/or distribute our software. The software is also available in retail stores and directly from the Net Nanny Web site. The Company also holds an exclusive patent on keystroke dynamics, a biometrics security and access control technology, that can identify individuals by the way that they type. For more information, visit the Net Nanny Web site at www.netnanny.com or call 604-662-8522.

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