Industry Leaders Announce Global Internet Project and Vision of Internet's Future;
Group unveils first estimate of jobs created by Internet worldwide

Contact: Jon Englund
ITAA
703 284 5301
jenglund@itaa.org

New York (December 11, 1996) -- A group of senior executives, representing 16 of the leading Internet software, telecommunications and digital commerce companies from around the world, today announced the formation of the Global Internet Project (GIP) to promote the growth of the Internet across geographic boundaries worldwide. The GIP also released a report exploring the present and future impact of the Internet upon commerce and society and offered the first estimate of the worldwide impact of the Internet on job creation.

"Because the Internet is global, we must address its challenges globally," said Netscape Communicationsí chairman and co-founder Jim Clark, Chairman of the GIP. "We cannot leave the outcome of the challenges to chance, which is why top business executives have come together through the GIP. We will work with appropriate national and international bodies to find answers to a variety of difficult issues to assure the best possible future for all members of the Internet community."

GIP members believe that the growth of the Internet will depend on the ability of companies and consumers worldwide to use this network of networks to obtain products and services in a secure, flexible, convenient and easy-to-use manner. GIP will focus its efforts on a global education effort to include government officials around the World, national legislatures as well as international organizations that influence Internet policy decisions.

Vice Chairman John Gerdelman, MCIís president of networkMCI Services, added that "Every day, weíre growing concerned about various countries that are trying to regulate the Internet. Although many of GIPís member companies are fierce competitors in the marketplace, we recognize the need to work together to ensure these myriad regulations do not stifle the growth of this important new medium. In short, working together, we can be the rising tide that lifts all boats for extending the benefits of the Internet worldwide."

The Internet is a job engine: the Global Internet Project also announced that an estimated 1.1 million jobs worldwide were created by the Internet in 1996. Commissioned by the GIP, investment bankers Takuma Amano and Robert Blohm derived the number of jobs created by the Internet from a calculation that extrapolated from this year's growth in US Internet, software, computer, chip, telecommunications and equipment companies' market capitalization and employment. Amano and Blohm had previously estimated value creation due to Internet market expansion to be in excess of $200 billion, a number that reflects the sum-total stock-market capitalization of all of Netscape and Yahoo! and of those other companiesí contributions to the Internet. Amano and Blohm declared the Internet accounts for this year's entire US economic growth and they proclaimed the era of "the Internet economy."

"The Internet is creating jobs while also improving productivity and lowering inflation. Moreover, because the Internet is in the growth stage it is, it still hasnít realized its full job-creating potential," they added.

The GIPís white paper, "The Emergence of a Networked World," explains the relationship between the Internet and aspects of people's lives such as education, health care, commerce and finance, media and publishing, small business and the workplace. The paper is designed to help educate politicians and government officials in countries around the world on the nature of the Internet and its revolutionary impact upon commerce and society. GIP will distribute the white paper to organizations worldwide. In addition to Clark and Gerdelman, members of the Global Internet Project include:

Mr. Marc Benioff, Senior Vice President, Marketing, Oracle Corp.
Mr. Francois Dutray, Group Executive Vice President, Visa International
Mr. Tom Evslin, Vice President, AT&T;
Mr. Robert Foster, Manager, Online & Multimedia, British Telecom
Mr. Paul Gudonis, President, BBN Planet
Mr. Tim Krauskopf, Chief Technology Officer, Spyglass, Inc.
Mr. Vic Langford, Senior Vice President, Internet Strategies, Novell, Inc.
Mr. Doug Michels, Chief Technical Officer, SCO
Mr. Yukio Mizuno, Executive Advisor, NEC Corp.
Mr. Michio Naruto, Executive Vice President, Fujitsu Limited
Mr. John Patrick, Vice President, Internet Technology, IBM Corporation
Dr. Eric Schmidt, Chief Technology Officer, Sun Microsystems, Inc.
Mr. Volker Steiner, Senior Executive Director, Multimedia Communications, Deutsche Telekom
Mr. Barry Sullivan, Corporate Vice President, Electronic Data Systems Corp.

GIP members outlined several public policy priorities for 1997.

1) Information Security and Authentication: The GIP's goal is to shape national policies on information security that work globally, giving companies and individuals the ability to ensure that their communications have an adequate level of security. The group developed a set of principles on the Global Information Security Infrastructure that was presented to the Organization of Economic Cooperation and Development (OECD) as part of its efforts to create international guidelines on cryptography. It will shortly be releasing recommendations related to implementing the OECD guidelines. In early 1997, the GIP will host a one-day summit on information security in London to explore questions associated with how various global key management infrastructure proposals would work. At this summit, various experts from around the world will explore practical global key management infrastructure considerations.

2) Protecting the Internet from Unnecessary Regulation by Governments: The computer industry has demonstrated the power of innovation in a largely unregulated environment by bringing new capabilities and tremendous increases in performance without additional costs. The GIP believes that the market-driven computer industry is the right model for the Internet. The telecommunications industry is now undergoing a sea change from a largely regulated regime to a deregulated environment. The GIP believes that the Internet should be at the vanguard of the deregulatory trend Ė reflecting the current dynamic of the computer industry and leading the future trend of the telecommunications industry. The GIP will be working with global bodies such as the World Trade Organization, G-7 and the International Telecommunications Union to ensure a deregulatory approach to the Internet globally.

The Global Internet Project is managed and staffed by the Information Technology Association of America, a high tech trade group representing 9,000 members and affiliates in the Internet, software, systems integration, services and telecommunications segments of the industry. For copies of "The Emergence of a Networked World," contact Jon Englund at 703 284 5301; email: jenglund@itaa.org. The GIPís web site can be found at www.gip.org.

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