GTE maps out electronic business strategy. Wins customers such as Scudder Kemper Investments, Cabletron and Carrier Corp. through its ability to offer bundled Internet services over its own high-speed network.

Editors' Note:

GTE will be demonstrating its e-business services during Internet World at Booth #2007 in the Jacob Javits Center, New York.

NEW YORK - GTE Internetworking today unveiled the strategy that has helped it become the industry's leading e-business provider, helping large enterprises and Internet start-up companies move their businesses on to the Internet.

Over the past year, many companies have learned the hard way that they can not simply make their Web sites or Internet initiatives look good. They have to have the foundation, or infrastructure, to handle large amounts of traffic and complex transactions. To meet this need, GTE has built its own high-speed, high-capacity private Internet backbone, and is one of the industry's leading providers of Internet services including Web hosting, Internet access, security and VPNs (virtual private networks). GTE then partners with leading application developers and systems integrators to build the e-business applications. Established companies such as Scudder Kemper Investments, Carrier Corp. and Internet start-ups like Interact, Smart Online, and Duty Free Zone have all turned to GTE Internetworking to help take their business to the Internet.

"E-business isn't just about having a lot of 'bells and whistles' on an e-commerce Web site. It's about making sure that site stays up and running when millions of people are hitting it at once," said Paul R. Gudonis, president of GTE Internetworking. "Our customers have spent a lot of time building a reputation and brand awareness in a traditional marketplace and we want to help them protect that brand in the new online world."

GTE Internetworking is one of only three companies that can provide both the infrastructure and Internet services that makes e-business possible.

"When you are talking about offering your customers the opportunity to conduct and monitor financial transactions over a Web site, you need to make sure that site is available when they need it, and that it remains secure. That's why we chose GTE Internetworking," said Greg Titus, vice president of electronic commerce for Scudder Kemper Investments.

Success Through Partners

GTE Internetworking recognizes that one of its strength is in providing the infrastructure to support e-business, so it has partnered with those companies focused on application development and systems integration. Unlike other providers that have partnered with only one company to provide development and integration support, GTE Internetworking is working with multiple partners. To date, Hewlett Packard, Cambridge Technology Partners, Sapient Corp., Hill Holiday Advertising Inc., and Agency.com have all been working with GTE to win business. GTE Internetworking provides the technology services and infrastructure, and the business partners handle the development and systems integration.

Highlights of GTE Internetworking's E-Business Customers

- Scudder is one of the oldest, most recognized and trusted names in the investment world, offering mutual funds, stock brokerage services, retirement plans and investment advice. GTE utilized its complete suite of services, as well as its applications development experience to build a proof-of-concept quickly. In just three months, Scudder and GTE Internetworking had Scudder's site online, serving customers 24 x 7.

- Cabletron, Inc. is a New Hampshire-based company with a world-class reputation for customizing networking solution for WANs and LANs. Using e-commerce to gain a competitive edge, Cabletron turned to GTE Internetworking to provide greater bandwidth, superior hosting, and global points of presence.

- Carrier Corporation is the world's largest manufacturer of heating, air conditioning and refrigeration systems and equipment. It is a subsidiary of United Technologies Corporation, provider of a broad range of high-technology products and support services to the aerospace and building systems industries. GTE Internetworking serves as the hosting, security and access provider for their international Web site.

- DutyFreeZone.com is a revolutionary Web site that enables online shoppers, for the first time, to purchase a variety of international brand name products, duty free. Operating in strict accordance with international customs laws and duty free allowances, the company's unprecedented approach to global e-commerce offers consumers savings of 20 to 40 percent below traditional online and retail store prices on premium merchandise. GTE Internetworking provides the backbone required for secure international Web purchasing.

- EXA is a provider of fluid dynamic software and services. GTE Internetworking will enable them to offer clients the first engineering simulation services over the Web by creating a "virtual" million-dollar system for EXA's customers at their fingertips.

- HoustonStreet.com is a business-to-business e-commerce exchange and vertical portal for trading wholesale electricity. HoustonStreet.com enables traders to buy and sell electricity faster and more efficiently than ever before. GTE Internetworking's hosting and security technology allows traders on HoustonStreet.com to buy and sell electricity in a real time, secure environment.

- The SharkWire add-on system from InterAct, the leading manufacturer of gaming peripherals, is a hardware kit consisting of a specially designed console modem, clear-blue full-size keyboard and phone line that connects Nintendo 64 game consoles to SharkWire Online - a kid-safe, parent-friendly site dedicated to the interests of teens and pre-teens that provides them with their own e-mail. GTE Internetworking provides the backbone with local dial-up via their nationwide DiaLinx
network and high capacity Global Network Infrastructure (GNI).

- Smart Online, Inc., is the leading provider of Web-hosted business productivity applications and information resources for small businesses and entrepreneurs. Its Web site, SmartOnline.com, provides small businesses with seven complete, easy-to-use Web-hosted business productivity applications, including Smart Business Plan, Smart Marketing Plan, Smart Incorporator and e-communications services such as e-mail, scheduling and contact management. GTE Internetworking will host its infrastructure and support for up to an estimated two million visitor's daily.

Infrastructure is Key

Underlying technology and services are key to the success of any e-business initiative. One way to mitigate this potential risk area is for companies to work with Internet service providers that own infrastructure. Following are a few of the key e-business services GTE Internetworking offers:

• GNI - a 17,000 mile high-speed, high-capacity private fiber backbone that has been built to enhance GTE Internetworking's service and handle high-bandwidth applications.
• 11 Global Data Centers - facilities located around the world where customers' Web sites are hosted, managed and monitored 24 hours per day, seven days a week to make sure they are up and running at all times.
• Secure Web hosting service - GTE Internetworking bundles Web hosting and VPNs that allow customers the ability to grant secure access to an intranet or Web site.
• Internet security - GTE security experts have logged more than seven million hours managing and monitoring firewalls.
• Dedicated and remote Internet access - global access to the Internet.

About GTE Internetworking and GTE Corp.

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, virtual private networks (VPNs), managed Internet security, network management, systems integration, and Web-based application development for integrating the Internet into business operations. GTE is one of the world's largest telecommunications companies and a leading provider of integrated voice, video and data services. Additional information about GTE Internetworking and GTE Corp. can be found on the Internet at http://www.gte.com.

# # #