Press Release

GRAND RAPIDS, MI — May 1st, 2003 — Wasn't the growth of residential broadband supposed to spell doom for traditional dial-up ISPs? Grand Rapids-based PathWay Internet Services sure has a funny way of meekly capitulating.

It's expanding statewide.

Previously serving 90 municipalities in West Michigan, PathWay (www.pathwaynet.com) has re-engineered its network to allow it to provide dial-up services to the entire Lower Peninsula. Now, new customers in nearly every lower Michigan community will be able to access Pathway services through local phone numbers.

"As dial-up communications advance and become more reliable, and faster computers reduce much of the time lag dial-up users once experienced, the cost-effectiveness of dial-up becomes that much more attractive, and our business is remaining strong," said Horace Demmink, CEO of PathWay Internet Services. "We've proven there is a market for dial-up, so it only makes sense to take it statewide."

PathWay Internet Services was founded in 1996, initially for the purpose of serving the Greenville market, which was underserved by other local ISPs. The company's rapid success and a series of acquisitions led to the addition of its Grand Rapids office. Throughout that time, however, the company has continued to be strong in its service to rural as well as urban and suburban areas.

PathWay's continued success and expansion suggest, along with recent surveys, that the appeal of broadband services may be overstated. Surveys show that broadband is ordered in only 15 percent to 20 percent of the households where it is available. Where broadband is not available, surveys show that only 8 percent want it.

"Despite the predictions, Internet users have remained very loyal to dial-up, and when you think about it, it makes sense," Demmink said. "The lack of any really necessary rich content or application that requires broadband, combined with current economic realities limiting personal discretionary spending, is causing a lot of hesitation when it comes to laying out that money for broadband." As an example, Demmink related the experience of a PathWay customer who recently returned to dial-up from a cable Internet service provider. "After paying substantial sums every month for broadband," said Demmink, "the only benefit he could see was his son's ability to download music. And for that much money, he could just buy him the CDs!"

Residential and business customers wishing to sign up for service through PathWay Internet Services can do so by calling 888-272-8492 or by logging on to www.pathwaynet.com.