Nettaxi Restructures to Reduce Expenses

Staff Reductions and Adjustments to Management

Compensation Will Save $1.3 Million Annually



Apr 16, 2001, 01:00 ET from Nettaxi.com

    CAMPBELL, Calif., April 16 /PRNewswire/ -- Nettaxi.com
 (OTC Bulletin Board:   NTXY), a community and portal Web site, has completed a
 restructuring that will save the company $1.3 million annually, said Robert
 Rositano, Jr., chief executive officer.  Nettaxi has reduced staff and cut
 management compensation as part of its ongoing effort to build revenue and
 enhance shareholder value, Rositano said.
     He said the restructuring was necessary to reduce expenses and realize
 greater efficiencies as Nettaxi pursues its strategy of diversification.  The
 company also is exploring the adoption of new technologies, such as broadband,
 streaming, connected devices and wireless communications, as well as clicks
 and mortar opportunities.
     "These changes are being implemented to continue our drive to create
 profits and shareholder value," Rositano said.  "They will help us continue to
 diversify, and explore and adopt new technologies which will give us access to
 new markets."
     The company has reduced its staff by 33 percent and now has a total of 16
 employees, he said.  In addition, Nettaxi has reduced management's annual
 compensation by 46 percent.   Nettaxi's board of directors will vote on a new
 management compensation package based on incentives and profit-sharing to take
 effect in the second quarter.
     "We regret the loss of some of our team, but these are challenging times
 and significant changes are still ahead for the industry and our company,"
 Rositano said.  "We will continue to look for ways to realize cost
 efficiencies for optimizing our revenues, profits and shareholder value as we
 enhance our services to subscribers."
 
     About Nettaxi.com
     Nettaxi.com, a community and portal web site recognized in the February
 edition of Forbes Best of the Web as one of the fastest growing web sites, is
 an Internet portal with a range of services and content.  Nettaxi offers
 members access to broadband content featuring sports, movie clips, movie
 trailers, and other forms of entertainment.  Nettaxi's homepage provides
 access to news, shopping, games, entertainment, sports, financial, computer,
 educational, political and travel information.  Nettaxi also provides services
 such as free e-mail, personal home pages, premium web hosting, chat and
 message boards.  Nettaxi is found on the Web at http://www.nettaxi.com.
 
     Safe Harbor Statement
     The matters discussed in this news release include forward-looking
 statements such as statements relating to our ability to generate programs to
 generate profits, which are subject to various risks, uncertainties, and other
 factors that could cause actual results to vary materially from the results
 anticipated in such forward-looking statements.  Such risks and uncertainties
 include, but are not limited to the possibility that our planned online
 marketing campaigns may not attract sufficient additional visitors to our
 site, competition, the management of our growth, and our ability to deliver
 new products and services to market on time.  The inability to accurately
 predict our future revenues, and other risks detailed from time to time in our
 filings with the Securities and Exchange Commission, represents our judgment
 as of the date of this release.  We disclaim any intent or obligation to
 update these forward-looking statements.
 
 

SOURCE Nettaxi.com
    CAMPBELL, Calif., April 16 /PRNewswire/ -- Nettaxi.com
 (OTC Bulletin Board:   NTXY), a community and portal Web site, has completed a
 restructuring that will save the company $1.3 million annually, said Robert
 Rositano, Jr., chief executive officer.  Nettaxi has reduced staff and cut
 management compensation as part of its ongoing effort to build revenue and
 enhance shareholder value, Rositano said.
     He said the restructuring was necessary to reduce expenses and realize
 greater efficiencies as Nettaxi pursues its strategy of diversification.  The
 company also is exploring the adoption of new technologies, such as broadband,
 streaming, connected devices and wireless communications, as well as clicks
 and mortar opportunities.
     "These changes are being implemented to continue our drive to create
 profits and shareholder value," Rositano said.  "They will help us continue to
 diversify, and explore and adopt new technologies which will give us access to
 new markets."
     The company has reduced its staff by 33 percent and now has a total of 16
 employees, he said.  In addition, Nettaxi has reduced management's annual
 compensation by 46 percent.   Nettaxi's board of directors will vote on a new
 management compensation package based on incentives and profit-sharing to take
 effect in the second quarter.
     "We regret the loss of some of our team, but these are challenging times
 and significant changes are still ahead for the industry and our company,"
 Rositano said.  "We will continue to look for ways to realize cost
 efficiencies for optimizing our revenues, profits and shareholder value as we
 enhance our services to subscribers."
 
     About Nettaxi.com
     Nettaxi.com, a community and portal web site recognized in the February
 edition of Forbes Best of the Web as one of the fastest growing web sites, is
 an Internet portal with a range of services and content.  Nettaxi offers
 members access to broadband content featuring sports, movie clips, movie
 trailers, and other forms of entertainment.  Nettaxi's homepage provides
 access to news, shopping, games, entertainment, sports, financial, computer,
 educational, political and travel information.  Nettaxi also provides services
 such as free e-mail, personal home pages, premium web hosting, chat and
 message boards.  Nettaxi is found on the Web at http://www.nettaxi.com.
 
     Safe Harbor Statement
     The matters discussed in this news release include forward-looking
 statements such as statements relating to our ability to generate programs to
 generate profits, which are subject to various risks, uncertainties, and other
 factors that could cause actual results to vary materially from the results
 anticipated in such forward-looking statements.  Such risks and uncertainties
 include, but are not limited to the possibility that our planned online
 marketing campaigns may not attract sufficient additional visitors to our
 site, competition, the management of our growth, and our ability to deliver
 new products and services to market on time.  The inability to accurately
 predict our future revenues, and other risks detailed from time to time in our
 filings with the Securities and Exchange Commission, represents our judgment
 as of the date of this release.  We disclaim any intent or obligation to
 update these forward-looking statements.
 
 SOURCE  Nettaxi.com