Internet America Receives Adverse Jury Verdict

Apr 02, 2001, 01:00 ET from Internet America, Inc.

    DALLAS, April 2 /PRNewswire/ -- Internet America, Inc. (Nasdaq: GEEK)
 today announced that a Dallas district court jury returned a verdict of
 potentially approximately $6 million in damages against Internet America, a
 director and former executive in a lawsuit filed by a former employee claiming
 fraud in connection with a stock option transaction in 1998.  The jury's
 verdict was not unanimous, and a judgment has not been entered.  Internet
 America's President and Chief Executive Officer, Jack Smith, commented, "We
 strongly disagree with any suggestion of responsibility and will now focus our
 efforts on the legal effect of this verdict.  We believe the jury's findings
 provide ample basis to argue that the court should enter a judgment of no
 liability.  We intend to pursue this course of action to have an appropriate
 judgment entered."
     Based in Dallas, Internet America is a leading Internet service provider
 primarily serving the Texas market.  Internet America offers businesses and
 individuals a full range of Internet services, including dedicated high-speed
 access, dial-up access, DSL and web hosting.  Internet America focuses on the
 speed and quality of its Internet services and its commitment to providing
 excellent customer care.  Additional information on Internet America is
 available on the Company's web site at www.internetamerica.com.
     This press release contains forward-looking statements relating to future
 expectations and results.  These statements, specifically including
 management's beliefs and intentions, are subject to many uncertainties that
 exist in Internet America's operations and business environment.  There can be
 no assurance that litigation issues will be determined in the Company's favor.
 Additionally, the Company's plans may change and actual results may differ
 materially.  Further risk factors are described in the detailed cautionary
 statements included in the Company's most recent SEC filings.
 
 

SOURCE Internet America, Inc.
    DALLAS, April 2 /PRNewswire/ -- Internet America, Inc. (Nasdaq: GEEK)
 today announced that a Dallas district court jury returned a verdict of
 potentially approximately $6 million in damages against Internet America, a
 director and former executive in a lawsuit filed by a former employee claiming
 fraud in connection with a stock option transaction in 1998.  The jury's
 verdict was not unanimous, and a judgment has not been entered.  Internet
 America's President and Chief Executive Officer, Jack Smith, commented, "We
 strongly disagree with any suggestion of responsibility and will now focus our
 efforts on the legal effect of this verdict.  We believe the jury's findings
 provide ample basis to argue that the court should enter a judgment of no
 liability.  We intend to pursue this course of action to have an appropriate
 judgment entered."
     Based in Dallas, Internet America is a leading Internet service provider
 primarily serving the Texas market.  Internet America offers businesses and
 individuals a full range of Internet services, including dedicated high-speed
 access, dial-up access, DSL and web hosting.  Internet America focuses on the
 speed and quality of its Internet services and its commitment to providing
 excellent customer care.  Additional information on Internet America is
 available on the Company's web site at www.internetamerica.com.
     This press release contains forward-looking statements relating to future
 expectations and results.  These statements, specifically including
 management's beliefs and intentions, are subject to many uncertainties that
 exist in Internet America's operations and business environment.  There can be
 no assurance that litigation issues will be determined in the Company's favor.
 Additionally, the Company's plans may change and actual results may differ
 materially.  Further risk factors are described in the detailed cautionary
 statements included in the Company's most recent SEC filings.
 
 SOURCE  Internet America, Inc.