Internet America Announces Acquisition of TXUN Internet Services [September 30, 2004]

DALLAS, Sep 30, 2004 /PRNewswire-FirstCall via COMTEX/ -- Internet America Inc. (GEEK), a leading Internet service provider, today announced that it has acquired the assets of TXUN Internet Services, a regional Texas ISP delivering dial-up and wireless Internet connectivity to customers in the Whitney, Texas region.

Privately-held TXUN was started in 2000 to provide Internet access solutions and related services to customers in the Whitney area. TXUN Internet Services currently provides dial-up and wireless Internet to approximately 1,000 residential and corporate customers, with a large percentage of new customers choosing wireless technology to receive broadband Internet using off-the shelf 802.11 Wi-Fi equipment.

"We are excited to be joining with Internet America to help realize our mission of offering high-speed Internet to everyone in the community," said Jack Justus, TXUN Internet Services' president. "Becoming a part of Internet America will allow us to continue to expand our coverage area, be able to offer new products and services previously unavailable to our customers, and to provide a higher level of service and support. We see incredible opportunity in partnering with Internet America to aggressively grow our customer base."

"This marks our second acquisition this month, and a continuation of our recently announced plan to add significant numbers of new Internet access customers via acquisitions," said Billy Ladin, CEO of Internet America. "We are focusing on ISPs in the region with a loyal customer base who can take advantage of the economies of scale that a larger ISP can provide for their operations."

Internet America is a leading Internet service provider primarily serving the Texas market. Based in Dallas, Internet America offers individuals and businesses a full range of Internet services, including dedicated high-speed access, wireless broadband Internet, DSL, dial-up access, Web hosting and self-managed server options. 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 http://www.internetamerica.com .

SOURCE Internet America Inc.

William E. Ladin, Jr. of Internet America, Inc.,
+1-214-861-2500, or investor.relations@airmail.net