Interquest Communications raises $3.1M to deliver broadband services to apartment and condominium communities stranded by the demise of previous service providers

Company acquires assets from Darwin Networks, Reflex Communications and VelocityHSI, Inc. and expands services nationwide

SEATTLE, WASHINGTON. (OCTOBER, 2001) - Interquest Communications, a leading provider of broadband Internet services to the multi-family real estate industry, today announced that it has closed $3.1 million Series A funding led by ComVentures, a leading communications venture firm, members of Interquest management and other private investors. The money will be used for operations and marketing to reinstate broadband services to apartments and condominiums where service was abruptly ended by the demise of broadband service providers in the past two years. Interquest broadband services are now available to residents in Seattle, Portland, Salt Lake City, Dallas, The San Francisco Bay Area, Phoenix, Tucson, Denver, and Southern California.

Interquest has announced the purchase of certain network assets formerly owned by service providers Reflex Communications and Darwin Networks. Before closing their operations this spring, Reflex and Darwin Communications were Internet service providers offering broadband services to apartment residents on a national scale. In addition, Interquest announced it purchased all of the non-cash assets of VelocityHSI, Inc. another service provider based in Walnut Creek, California. VelocityHSI also provided service in multiple western states. The acquisitions completed by Interquest provide it a base of deployed assets in excess of 50,000 apartment units, clustered in the states of Arizona, California, Colorado, Oregon, Texas, Utah, and Washington.

"It is clear that the multi-family industry is searching for an experienced service provider to stabilize the marketplace in the aftermath of the closing of many ISPs over the last year. The demand for services has only increased and the time is right to re-enter the market. The three acquisitions completed to date provide us an immediate concentration of customers that will allow us to focus on quality service as well as bottom line profitability," said Glenn Meyer, Chief Executive Officer of Interquest Communications.

"Our previous operating experience has allowed us the luxury of effectively combining the assets of these three former service providers into one manageable network. We will be aggressively reactivating service in many of these properties over the next few months. We plan to continue actively expanding our service by pursuing additional acquisitions, as well as work with property owners that have a need for service in our target markets," he added.

According to Cliff Higgerson, partner at ComVentures, "There is a great market for reinstating disrupted service to the multi-family real estate industry. The demand is there, the assets are in place and the growth potential is tremendous. It is a winning combination and Interquest reinstates service with a substantially lower overhead than their predecessors. The Interquest team has the deep market and technical experience to make the company a great success. We believe in the long-term future of the company as a strong service provider," he concluded.

About Interquest Communications, Inc.
Interquest is a leading provider of broadband Internet services to the real estate industry including both multi-family and commercial office buildings. The company is headquartered in Seattle, Washington and maintains a regional office in Walnut Creek, California.

More information on Interquest and its services can be found at www.Interquest.net, or by contacting Interquest headquarters in Seattle, Washington, at 206-574-5460.

About ComVentures
ComVentures, based in Palo Alto, California, is a venture capital firm managing over $1.2 billion. ComVentures invests exclusively in early-stage communications and Internet companies focusing on three specific communications sectors: network infrastructure, software and services. For more information, please visit www.comventures.com.

Interquest Corporate Contact:
Glenn Meyer
Interquest Communications
(206) 574-5480
gmeyer@Interquest.net

ComVentures Contact:
Tami Bhaumik
tbhaumik@comventures.com
(650) 325-9600

Kathleen Jensby
kjensby@comventures.com
(650) 325-9600