1

                            [INTERNET AMERICA LOGO]




CONTACT                                                              FOR RELEASE
- --------------------------------------------------------------------------------
Paul R. Streiber                                                       IMMEDIATE
Director, Corporate Communications
214.861.2582
investor.relations@airmail.net


               INTERNET AMERICA ACQUIRES HOUSTON-BASED NEOSOFT(TM)
                      ------------------------------------
                ACQUISITION PUSHES SUBSCRIBER COUNT OVER 100,000


         DALLAS, June 30 -- Internet America, Inc. (Nasdaq: GEEK) today
announced that it has acquired all the stock of NeoSoft, Inc.(TM) for $7.3
million in cash. NeoSoft(TM) (www.neosoft.com) is a Houston-based Internet
service provider with points of presence in Houston and New Orleans. NeoSoft(TM)
generates revenue of about $4 million per year based on annualized revenue from
its quarter ended March 31, 1999.

         The NeoSoft(TM) acquisition pushes Internet America's subscriber count
over the 100,000 mark. With 53,500 subscribers at December 31, 1998, Internet
America has almost doubled its subscriber base in six months by executing its
business strategy of aggressively expanding through acquisitions and internal
growth.

         Mike Maples, President and Chief Executive Officer of Internet America
said: "NeoSoft(TM) is a premium Internet service provider as evidenced by its
$35 average monthly revenue per subscriber. The acquisition of NeoSoft(TM) is
important for two reasons. First, it gives us a platform to expand our presence
in Houston, southeast Texas and Louisiana, utilizing Internet America's unique
user density business model. Second, the addition of the NeoSoft(TM) subscribers
represents a growth milestone for Internet America by pushing our subscriber
count over 100,000."

         Ellyn Jones, President of NeoSoft(TM), commented, "We are excited to
join forces with Internet America, a company that offers a very recognizable
brand, fast and reliable systems, and extensive reach."

                                     -more-

   2


ABOUT INTERNET AMERICA

         Internet America (www.airmail.net) is a leading Internet service
provider based in Dallas, Texas. Through its 1-800-Be-A-Geek(R) television
campaigns that emphasize the speed and quality of its Internet services and its
commitment to customer care, Internet America has become one of the leading
Internet service providers in its markets. Internet America offers a wide array
of Internet services tailored to meet the needs of individual consumers,
including Expresslane DSL, dial-up Internet access, multiple e-mail addresses,
World Wide Web access, chat, Usenet News and personal web sites. Internet
America also provides a full range of services to business customers, including
dedicated high-speed access, web hosting, server co-location and domain name
registration.

         This press release may contain forward-looking statements relating to
future financial results or business expectations and, as a result, should be
considered as subject to the many uncertainties that exist in the Company's
operations and business environment. Business plans may change as circumstances
warrant and actual results may differ materially as a result of a number of
factors. Such factors include, but are not limited to: the Company's expansion
and acquisition strategy, the Company's ability to achieve operating
efficiencies, the Company's dependence on network infrastructure, capacity,
telecommunications carriers and other suppliers, industry pricing and technology
trends, evolving industry standards, regulatory changes, and general economic
and business conditions. These risk factors and additional information are
included in the Company's filings with the Securities and Exchange Commission,
including its Form 10-QSB for the quarter ended March 31, 1999, and its Form
SB-2 dated May 17, 1999.

                                      ###