SaskTel and Netscape Announce Agreement

MOUNTAIN VIEW, CA; TORONTO, Canada; and REGINA, Canada (February 3, 1999) - SaskTel and Netscape Communications Corporation (NASDAQ: NSCP) today announced a three-year agreement focused on developing and delivering Internet-based solutions to businesses and consumers worldwide.

Under the terms of the agreement, SaskTel, the leading full-service communications company in Saskatchewan, gains a license to Netscape's entire line of enterprise software and help from Netscape's professional services organization, which is helping the company develop a wide range of hosted commerce and communications services. Now, businesses will be able to outsource these key services to SaskTel, instead of having to build and manage them in house, making it much easier and more cost-effective for businesses to participate in the Net Economy.

"This agreement is key to SaskTel's diversification strategy and strongly positions the company to compete in the global net economy," said Don Ching, SaskTel President and CEO. "It is the next step in providing leading-edge, innovative services that respond to the needs of our customers in Saskatchewan and around the world. We expect these services to enable businesses to reinvent themselves, both internally and externally, creating virtual businesses that are no longer bound by borders."

With this agreement, SaskTel will be able to offer a range of services, such as online bill presentment and payment and secure online ordering, to businesses that seek cost saving by outsourcing these and other e-commerce solutions. Consumers will benefit from these businesses' new ability to provide instant sales, product delivery and customer service. In future, SaskTel will also deliver advanced communications services such as intranet hosting and advanced messaging, as well as unified messaging services that let businesses communicate instantly with employees, suppliers and dealers around the world.

"The Net Economy is erasing the physical boundaries between businesses, their partners and customers, making a solid presence on the Net critical for survival in an environment where the competition is just a click away," said Marc Andreessen, chief technology officer at Netscape. "For many smaller businesses who find it too costly to build a Net presence on their own, SaskTel is offering a cutting edge solution a fast, reliable way to outsource their commerce solutions and participate fully in the Net Economy."

This agreement enables SaskTel to become a Netscape center of excellence, working with the full suite of Netscape's world-renowned software to develop Internet-centric solutions for the Saskatchewan, Canadian, and international marketplace. Using Netscape's software suite, SaskTel will develop and introduce leading edge Internet services that will benefit both business and consumers. This agreement is in complete alignment with a long history of firsts in Saskatchewan.

SaskTel's Advanced Interactive Solutions Division (AIS) provides Internet-based services like Sympatico, Sympatico High Speed and QuantumLynx Business Solutions to business and residential customers in Saskatchewan. Sympatico is an Internet offering provided at one rate for all customers - urban and rural. SaskTel was the first company in North America to offer high-speed Internet access using digital subscriber line (DSL) technology. QuantumLynx Office is a virtual office solution and includes an array of interactive solutions for business customers who want to use the Internet to interact securely with their employees, clients and suppliers.

"The Larson Allen Solution Center is proud to be the first in the US to introduce QuantumLynx Office," said Dan McCreary, principal in charge, Larson Allen Solution Center. "After a lengthy evaluation process we have also chosen SaskTel AIS to host our mission-critical accounting database systems for the health care industry."

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 corporate sales at 650/937-2555.

Netscape, Netscape Navigator, Netscape Certificate Server, Netscape FastTrack Server, Netscape ONE, SuiteSpot, and the Netscape N and Ship's Wheel logos are registered trademarks of Netscape Communications Corporation in the United States and other countries. Other Netscape logos, product names, and service names are also trademarks of Netscape Communications Corporation, which may be registered in other countries.