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NativeMinds and AppliedTheory Expand Alliance to Host and Resell Virtual Service Representatives

NativeMinds vReps are automated online personalities that emulate the best in human customer service at a fraction of the cost of e-mail support and live call center agents.

San Francisco, CA - 2001-07-16 - NativeMinds, Inc., a leading provider of online customer self-service solutions called virtual representatives, or vReps™, has expanded its relationship with AppliedTheory Corporation (NASDAQ: ATHY), the Internet knowledge, development and managed hosting partner for hundreds of large corporations. Under the new agreement, AppliedTheory will market, resell, integrate and provide managed hosting services for NativeMinds vReps for large enterprise customers wanting to reduce costs and improve customer service.

NativeMinds vReps are automated online personalities that emulate the best in human customer service at a fraction of the cost of e-mail support and live call center agents. vReps help companies leverage existing information by integrating with Web pages, CRM systems and databases to give customers self-service access to the information they need. vReps provide personalized and immediate answers to customer questions via two-way natural language typed conversation, freeing up live service agents for higher-level customer interactions.

As part of its total life-cycle approach to building, integrating and hosting sophisticated Internet platforms, AppliedTheory will provide vRep development, implementation and maintenance services for its customers which currently include many large corporations, government agencies and learning institutions.

"AppliedTheory excels at offering its customers comprehensive managed hosting services - providing everything from sophisticated Web hosting to application development and content management tools," said Denis Martin, senior vice president of products and services at AppliedTheory. "Our clients' demand for eCRM, and as part of that, customer self-service - which reflects the overall market demand - prompted us to offer a wide ranging solution based on NativeMinds' vRep technology."

International companies, including NativeMinds' customers Ford Motor Co., Nissan, Oracle, and Deutsche Telekom subsidiary One 2 One, are increasingly adopting advanced virtual service agents that proactively address up to 80% of frequently asked customer questions using natural language dialog.

"We're very pleased to be working with AppliedTheory in this expanded capacity," said NativeMinds vice president of marketing Andrew de Vries. "As more businesses implement customer self-service solutions, it is critical for NativeMinds to be allied with capable partners who can provide vRep development, implementation and managed Web hosting services."

About AppliedTheory Corporation

Industry pioneer AppliedTheory combines its unparalleled knowledge base with the ability to build, integrate and manage Internet business solutions in an increasingly complex online economy. AppliedTheory's proactive responsiveness to changing business requirements have earned the company a 97 percent retention rate from customers that include AOL, America's Job Bank and Ingersoll-Rand. The company offers a comprehensive and fully integrated suite of integrated managed hosting, connectivity and security services, providing one of the industry's most reliable single sources for large enterprise Internet needs. For additional information about the company, visit www.appliedtheory.com.

For more information, contact Verity at info@verity.com or at World Wide Web site http://www.verity.com or call 408-541-1500.

Verity and the Verity logo are registered trademarks or trademarks of Verity, Inc.

Deb Hochheiser

NativeMinds Inc.

(415) 778 3274

dhochheiser@nativeminds.com

Vanessa Gaw

A&R Partners

(650) 762 2820

vgaw@arpartners.com

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