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Technology Stocks : Netscape -- Giant Killer or Flash in the Pan?

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To: Yiota who wrote (2021)1/22/1998 11:07:00 AM
From: Mark Zavist  Read Replies (1) of 4903
 
Netscape Announces Plans to Make Next-Generation Communicator Source Code Available Free on the Net
PR Newswire - January 22, 1998 11:02
NSCP %CPR %MLM %PDT V%PRN P%PRN

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Bold Move to Harness Creative Power of Thousands of Internet Developers;
Company Makes Netscape Navigator and Communicator 4.0 Immediately Free for All
Users, Seeding Market for Enterprise and Netcenter Businesses

MOUNTAIN VIEW, Calif., Jan. 22 /PRNewswire/ -- Netscape Communications
Corporation (Nasdaq: NSCP) today announced bold plans to make the source code
for the next generation of its highly popular Netscape Communicator client
software available for free licensing on the Internet. The company plans to
post the source code beginning with the first Netscape Communicator 5.0
developer release, expected by the end of the first quarter of 1998. This
aggressive move will enable Netscape to harness the creative power of
thousands of programmers on the Internet by incorporating their best
enhancements into future versions of Netscape's software. This strategy is
designed to accelerate development and free distribution by Netscape of future
high-quality versions of Netscape Communicator to business customers and
individuals, further seeding the market for Netscape's enterprise solutions
and Netcenter business.
In addition, the company is making its currently available Netscape
Navigator and Communicator Standard Edition 4.0 software products immediately
free for all users. With this action, Netscape makes it easier than ever for
individuals at home, at school or at work to choose the world's most popular
Internet client software as their preferred interface to the Internet.
"The time is right for us to take the bold action of making our client
free -- and we are going even further by committing to post the source code
for free for Communicator 5.0," said Jim Barksdale, Netscape's president and
chief executive officer. "By giving away the source code for future versions,
we can ignite the creative energies of the entire Net community and fuel
unprecedented levels of innovation in the browser market. Our customers can
benefit from world-class technology advancements; the development community
gains access to a whole new market opportunity; and Netscape's core businesses
benefit from the proliferation of the market-leading client software."
Netscape, plans to make Netscape Communicator 5.0 source code available
for modification and redistribution beginning later this quarter with the
first developer release of the product. The company will handle free source
distribution with a license that allows source code modification and
redistribution and provides for free availability of source code versions,
building on the heritage of the GNU Public License (GPL), familiar to
developers on the Net. Netscape intends to create a special Web site service
where all interested parties can download the source code, post their
enhancements, take part in newsgroup discussions, and obtain and share
Communicator related information with others in the Internet community.
Netscape will also continue to develop new technologies and offer periodic
certified, high-quality, supported releases of its Netscape Communicator and
Navigator products, incorporating some of the best features created by this
dynamic community.
The ubiquity of Netscape's client software facilitates Netscape's strategy
of linking millions of individuals to businesses. Today's announcements will
help to further proliferate Netscape's award-winning client software, which
today has an installed base of more than 68 million, providing a ready market
for businesses using Netscape's Networked Enterprise software solutions and
Netscape Netcenter services. Netscape's research indicates that in the
education market where Netscape's products are free, the Netscape client
software commands approximately 90 percent of the market, indicating that
users tend to choose Netscape when the choice is freely available. Making its
browser software free also will enable Netscape to continue to drive Internet
standards, maximize the number of users on the Internet, and expand the third-
party community of companies and products that take advantage of the Netscape
software platform.
Netscape has successfully shifted its business over the past year toward
enterprise software sales and to revenues from its Web site business, and away
from standalone client revenues. In the third quarter of 1997, standalone
client revenues represented approximately 18 percent of Netscape's revenue,
with the rest coming from enterprise software, services and the Web site.
Preliminary results for the fourth quarter of 1997, which Netscape announced
January 5, show standalone client revenues decreased to approximately 13
percent in the fourth quarter. In the fourth quarter of 1996 by comparison,
standalone client revenue represented approximately 45 percent of Netscape's
revenue.
In conjunction with its free client, Netscape separately announced today
that it is launching a host of enhanced products and services that leverage
its free client software to make it easy for enterprise and individual
customers to adopt Netscape solutions. The new products and services
reinforce Netscape's strategy of leveraging market penetration of its popular
client software and its busy Internet site to seed further sales of Netscape
software solutions in the home and business markets. The new products and
services include enhanced subscription and support packages, an investment
protection program for Netscape Communicator users, new reduced pricing on
Netscape's retail and enterprise client products, new Premium Services on its
Netscape Netcenter online service and Netscape SuiteSpot server software
upgrades featuring Netscape client software.
In addition, the company separately announced the launch of an aggressive
new software distribution program called "Unlimited Distribution" to broadly
distribute its market-leading Internet client software for free. Unlimited
Distribution enables Original Equipment Manufacturers (OEMs), Internet Service
Providers (ISPs), telecommunications companies, Web content providers,
publishers and software developers to download and redistribute Netscape
Communicator and Netscape Navigator easily with "no strings attached." In
addition, beginning immediately, individual users can download Netscape
Communicator or Navigator for free, register for Netscape Netcenter and,
beginning tomorrow, enter the "Choose Netscape" sweepstakes to win exciting
travel-related prizes, including a grand prize of two all-inclusive, seven-
night tropical resort vacations.
Individuals can download a free copy of Netscape Communicator client
software or the Netscape Navigator browser from the Netscape home page, at
home.netscape.com, or by clicking on any of the thousands of "Netscape
Now" buttons on the Internet. Netscape Communicator Professional Edition,
which adds features for enterprise customers, will be available for US$29.
Netscape Communications Corporation is a premier provider of open software
for linking people and information over enterprise networks and the Internet.
The company offers a full line of Netscape Navigator clients, servers,
development tools and commercial applications to create a complete platform
for next-generation, live online applications. Traded on Nasdaq under the
symbol "NSCP," Netscape Communications Corporation is based in Mountain View,
California.

Additional information on Netscape Communications Corporation is available
on the Internet at home.netscape.com, by sending email to
info@netscape.com or by calling 650-937-2555 (corporate customers) or
650-937-3777 (individuals).

Netscape is a trademark of Netscape Communications Corporation, which is
registered in the United States and other jurisdictions. Netscape
Communications, the Netscape Communications logo, Netscape Navigator, Netscape
SuiteSpot, Netscape Composer, Netscape Messenger and Netscape Communicator are
trademarks of Netscape Communications Corporation.

SOURCE Netscape Communications Corporation
/CONTACT: Rosanne Siino of Netscape Communications Corporation,
650-937-2619, or Email: rosanne@netscape.com/
/Web site: home.netscape.com
(NSCP)
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