NetworkIP and BillMatrix Announce Pilot Program Providing Real-Time Automated Recharge Capability for the Phone Card Industry Mar 12, 2001 NetworkIP (www.networkip.net), an industry leading e.Application and Access Exchange of converged voice and Internet services and BillMatrix Corporation (BillMatrix), a leading provider of comprehensive electronic payment solutions and services over the telephone and Internet, announced today their joint participation in a program providing an automated telephone recharge solution for prepaid phone card customers. This solution, now in pilot production, will allow distributors that utilize NetworkIP's advanced network services to offer their customers a more efficient, cost effective, and intuitive approach to replenishing their existing phone card. Using the patented BillMatrix System, a phone card customer will be able to recharge their card, on a real-time basis, utilizing a credit card or electronic check. The system can be accessed from any location using a touchtone phone. This "on-demand" program will not require a customer to pre-register in order to benefit from this convenience. "The prepaid phone card industry has always needed a simple and seamless recharge option, where the customer can pick up the phone and in a minute be talking again with their existing PIN", said Pete Pattullo, President and CEO of Network IP. "Upon completion of the pilot, this product will be available to all of our prepaid services customers including cable and Internet." Historically, significant fraud rates and limited payment options have been roadblocks to the success of on-demand telephone based recharge programs. As a result, customers have often been required to talk to a live customer service representative where costs are high and hold times are significant. BillMatrix will draw on many years of experience processing on-demand telephone based payments for the prepaid telecommunications industry to address the fraud issue. "We are excited about the opportunity this pilot program presents for BillMatrix and NetworkIP to create a new convenient and reliable method of recharging phone cards," said BillMatrix President and CEO, Scott Walker. "During the pilot period, we will closely monitor attempted fraud and make adjustments to our fraud detection systems, paving the way for a full rollout of the recharge program." Daily recharge reporting to the phone card distributor of minutes purchased as well as daily deposits into the distributor's bank account gives the distributor greater money management flexibility. Participating distributors will also benefit by increasing cash flows from their existing cards in circulation since customers will be more willing to recharge their existing card rather than making a point of sale purchase at a retail location. About BillMatrix BillMatrix Corporation provides automated electronic payment solutions over the telephone and Internet for various industries including telecom, utilities, insurance, etc. Founded in 1994 and headquartered in Dallas, the BillMatrix solution gives consumers the ability to conveniently make payments utilizing a variety of payment methods including credit and debit cards, ATM cards, ACH, and electronic checks. BillMatrix intends to partner with organizations to offer fully integrated, real-time, cost-effective, outsourcing of prepaid recharge and bill payment options. For more information, call Greg Haney at 214-750-2784. More information about BillMatrix can be found on the Internet at www.billmatrix.com. About NetworkIP Founded in 1997, NetworkIP is an industry leading e.Communications application service provider of enhanced services. The company provides value-added, business-to-business communication services via the Internet to service providers. The company has created the first future-proof, large scale e.Communications network, bringing together the best in class switching, computing hardware, data storage, IP networking, and software development methodology. NetworkIP's platform enables CLECs, ILECs, ISPs, cable companies, municipalities and public utilities, and other businesses to offer broadband voice, data and video services. Current e.Communication products and services offered by NetworkIP include e.Prepaid Calling Cards, e.Prepaid Long Distance, e.Prepaid 1+ Long Distance, e.Prepaid Internet, e.Conferencing and e.Cable. NetworkIP has projected fiscal year 2000 revenues of $200 million.