"QuickATM's current market coverage is an ideal addition to CAIS's growing market leadership for visitor-based networks in hotels, apartment and public areas that enable expanded access and content applications of the Internet," said Ulysses G. Auger II, CEO of CAIS Internet. "With this acquisition, CAIS expands its position to not only meet the significant demand of existing customers for kiosk and portal services in lobbies or other public areas, but proceeds with increased capacity to penetrate new broadband markets with the CAIS brand."

The Internet kiosk market is expected to grow over 80 percent in the U.S. annually over the next three years to nearly 100,000 units installed by 2002, according to Summit Research. The company cites that international market growth will be even more dramatic, reaching over 250,000 installed units by 2002.

QuickATM is the oldest and most experienced operator of public access Internet kiosks in the U.S. QuickATM designs and builds its own kiosks, writes kiosk software applications, and operates its own kiosk network. CAIS Internet will merge QuickATM's kiosk business into its CAIS Software Solutions subsidiary, which markets the IPORT Public Terminal System (IPORT PTS) software and IPORT Central Management Services (IPORT CMS) for Internet kiosk applications.

QuickATM and CAIS were the first two companies to market and deploy Internet kiosks in airports. Combining their experience, customer base, and product offerings provides significant market advantages, including:

• Low cost solutions
• Proven, reliable kiosk operating system
• Custom kiosk applications, including specialized business traveler content, a customer loyalty program and video e-mail
• Comprehensive kiosk monitoring and service capabilities
• Significant market knowledge and technical expertise

CAIS Internet has master agreements to target its broadband services to more than 10,000 properties nationwide including meeting room solutions for hotels, and laptop or PC access solutions to more than 1.3 million guest rooms and apartment homes. Most existing contracts also include requests for public area kiosk solutions. The acquisition will enhance the ability of the company to integrate these services, but will also enable a major expansion of the CAIS kiosk global network into additional public markets.

"This deal underscores CAIS's commitment to provide high speed, easy-to-use Internet access services to its target markets," said Steve Nye, President of CAIS Software Solutions. "By developing a large, national kiosk network CAIS is positioned to provide integrated solutions, drive rapid growth in kiosk deployment and acceptance, and be one of the first to provide a platform for growing public access products and services."

Based in San Diego, CAIS Software Solutions develops the award-winning IPORT(TM) family of products enabling easy broadband Internet access and powerful portal marketing and service management capabilities. IPORT(TM) enables service providers, eCommerce merchants, and information-based organizations to effectively offer new and enhanced Internet based services. IPORT(TM) solutions are installed in hotels, cruise ships, airports, central offices and cable head-ends worldwide. Formerly known as ATCOM/INFO, the company is a wholly owned subsidiary of CAIS Internet, a Washington, D.C.- based broadband access solutions provider.

CAIS Internet, Inc. [NASDAQ: CAIS] is a leading broadband access solutions company. CAIS provides customers with comprehensive Internet solutions while at home in apartments, at work in small-to-medium businesses, or on-the-go at hotels, airports, travel plazas, cruise ships, and retail stores.

Whether it's an innovative solution for DSL & leased-line dedicated access for daytime business traffic, creating an in-building network for multiple users, or providing a public area Internet kiosk, the company delivers a cost-effective, easy and convenient Internet experience. The customer experience is the result of a one-stop, integrated solutions package of innovative CAIS network access and technologies, award-winning IPORT(TM) software, customer support, portal content, and systems.

Kohlberg Kravis Roberts (KKR) announced in 1999 an up to $200 million investment and up to 26 percent capital interest in CAIS Internet, taking two seats on the CAIS Internet Board of Directors. Qwest Communications also took a five percent equity stake in the broadband solutions provider in 1999. CAIS Internet is headquartered in Washington, DC, and is reachable at 888/252-CAIS or on the Internet at www.cais.com.

CAIS is a registered trademark of CAIS Internet.

This release contains statements relating to CAIS's future expectations and business strategies or other "forward-looking" information. Those statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contemplated by the statements. Important factors that may cause actual results to differ from projections include, among others: changes in business conditions; changes in the Internet services industry and the general economy; our limited operating history; our ability to manage rapid growth; our ability to enter into joint ventures and other strategic relationships with companies on terms acceptable to us; and the impact of computer and related problems that may arise from the Year 2000 problem on our business.