Netscape Reports Record Revenue of $162 Million for Fourth Quarter Ending October 31, 1998

MOUNTAIN VIEW, Calif. (November 23, 1998) - Netscape Communications Corporation (NASDAQ:NSCP) today reported record company revenue of $162.0 million for the quarter ended October 31, 1998, an eight-percent increase over the $150.2 million in revenue during the quarter ended July 31, 1998. The company reported operating income of $0.9 million for the quarter ended October 31,1998, as compared to an operating loss of $2.1 million for the preceding quarter ended July 31, 1998. Net income for the quarter ended October 31,1998, totaled $2.7 million or $0.03 per share, compared with net income of $0.1 million or $0.00 earnings per share in the preceding quarter. Net income, excluding amortization of goodwill generated from prior acquisitions, totaled $4.2 million or $0.04 per share for the quarter ended October 31, 1998.

Netscape saw strong growth in its Netscape Netcenter portal business, with revenue for Netcenter increasing 24-percent to $48.0 million for the quarter ending October 31, 1998, as compared to $38.7 million for the quarter ended July 31, 1998. Revenue from Netscape's Enterprise software and services business also continued to grow, increasing two-percent during the quarter to $114.0 million, compared to $111.6 million in the previous quarter. Netscape's international business also grew, with revenue from international sales increasing to 13-percent of Netscape's overall revenue, as compared to 11-percent of Netscape's overall revenue in the quarter ended July 31, 1998.

"Results for the fourth quarter demonstrate that Netscape's Netcenter and Enterprise software and services businesses continue to attract customers worldwide who want to participate in the Net Economy," said Jim Barksdale, president and chief executive officer of Netscape. "A number of deals in the quarter reflected the strong synergies between the two sides of our business, with customers such as Qwest Communications, Sasktel and others taking advantage of Netscape's unique Internet expertise in both award-winning Enterprise software and leading Internet portal services."

Netcenter Overview
In the quarter, Netscape embarked on an internal campaign called "Project Turbo" to build Netscape Netcenter into one of the fastest-growing Internet portal sites. Project Turbo goals were based on metrics in key areas including web site traffic and reach, member registration, software downloads, and revenue growth. Netscape surpassed each of its goals, with specific results including: reaching up to 32 million daily page views and an average 50-percent increase in daily traffic over the preceding quarter; growing Netscape Netcenter member registration by one million new members per month; and growing registration from six million in the previous quarter to more than nine million during the fourth quarter, representing a quarterly member acquisition increase of 83 percent.

Netscape client software downloads marked another key area of growth. Netscape set a goal to reach more than 12 million downloads during the quarter, and surpassed its goal with more than 24 million Netscape Communicator and Netscape Navigator software downloads from Netscape Netcenter. The increase in downloads was in part due to new beta and shipping releases of Netscape's browser products. In October 1998, Netscape shipped Netscape Communicator 4.5, the first browser designed to link Netscape Netcenter portal site's content and services with ease-of-use advances in the browser to make it simpler for people to find information on the Internet.

Netscape also announced several key agreements for Netcenter, including relationships with entertainment and media content providers such as Entertainment Tonight, Rolling Stone Network, and Children's Television Workshop for the Netcenter Kids & Family and Entertainment channels; and a strategic agreement with Qwest Communications, Inc. to offer consumers one-stop access to a suite of easy-to-use leading communications services through the Netscape Contact service. In addition, Netscape unveiled SmartDownload, a free service designed to make the software downloading process more productive, and a next-generation portal service called Custom Netcenter that enables organizations to create corporate portals that integrate the services and content of the popular Netscape Netcenter portal with Netscape's enterprise software and with the organization's specific applications and business information. Netscape also announced a major push to extend Netscape Netcenter content and services into local markets worldwide.

Enterprise Overview
On the Enterprise side of its business, Netscape announced several significant agreements. In September 1998, Netscape and Lucent Technologies announced that Lucent had licensed the Netscape CommerceXpert suite of Internet commerce applications to create Lucent ECommerce Solutions, a comprehensive portfolio of consulting services, software and network security products for conducting electronic commerce. Netscape also recently announced strong momentum for its security products, with more than 20 vendors, including Check Point Software Technologies, RedCreek and Litronic, licensing or integrating Netscape's security solutions in their virtual private networks, firewalls, smart cards and other security products.

In addition, Netscape unveiled Netscape Messaging Server 4.0 Hosting Edition to enable Internet service providers and telecommunications companies to deliver hosted Internet services to millions of users. The company announced that more than 75 Internet service providers and telecommunications companies worldwide, including Bell Canada Emergis, Fabrik, France Telecom, and others, are deploying hosted Internet and intranet services based on Netscape's scalable server software. During the fourth fiscal quarter, Netscape also began shipping Netscape Application Builder 3.0 software for speeding development of applications for Netscape Application Server software; Netscape Process Manager 1.0 application software for enabling companies to design, deploy, manage and access sophisticated processes throughout an enterprise and over extranets; and Netscape Mission Control Desktop 4.5 with the Netscape Communicator Pro management suite, to provide information technology managers with a new level of control and manageability for their Intranet client environments.

Netscape Communications Corporation is a leading provider of software and services for businesses that want to transform the way they create and keep customers in the emerging Net Economy. The company offers a full line of enterprise software solutions, professional services, and a leading Internet portal to help companies build, buy, or outsource Internet applications that drive revenue growth, build customer loyalty, and create new levels of business efficiency. Traded on NASDAQ under the symbol "NSCP," Netscape Communications Corporation is based in Mountain View, California.

Additional information on Netscape Communications Corporation is available on the Internet at http://home.netscape.com, by sending email to info@netscape.com, or by calling 650/937-2555 (corporate customers) or 650/937-3777 (individuals).

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