NETTAXI RESPONDS TO LAWSUIT

CAMPBELL,  Calif.,  May  11,  2001 - Nettaxi.com (OTC BB: NTXY), a community and
portal  Web  site,  said that allegations in a lawsuit filed against the company
are  completely  without  merit.

On May 1, 2001 seven shareholders of the company filed a lawsuit against Nettaxi
in the United States District Court for the Central District of California (Case
No.  SACV  01-459 AHS).  The complaint also names Robert Rositano, Jr. Nettaxi's
Chief  Executive  Officer,  Dean Rositano, Nettaxi's President, and Glenn Goelz,
Nettaxi's  former  Chief  Financial  Officer,  as additional defendants.  Due to
factual misrepresentations in the complaint, Nettaxi anticipates that an amended
complaint  will  be  filed.

The  complaint  alleges  that the company violated securities laws in connection
with  its  February  2000 private placement.  Only three of the seven plaintiffs
actually  purchased  shares of Nettaxi common stock in the February 2000 private
placement.  Prior to filing the complaint, the plaintiffs demanded the refund of
all of the money invested in Nettaxi and demanded that the exercise price of the
warrants  issued  in  the  private  placement be reduced from $4.00 to $0.25 per
share.  Additionally, prior to filing the complaint, Nettaxi was asked to invest
capital  in  a company affiliated with one of the plaintiffs.  In the complaint,
the  plaintiffs are seeking compensatory damages, injunctive relief and fees and
interest.

"We  believe  the allegations made in the complaint are completely without merit
and  that  the lawsuit reflects shareholder frustration with the recent downturn
in  the  stock market," said Robert Rositano, Jr..  "The company plans to defend
the  action  vigorously,"  he  said.

ABOUT  NETTAXI.COM

Nettaxi.com 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  www.nettaxi.com.
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SAFE  HARBOR  STATEMENT

The  matters  discussed  in this news release include forward-looking statements
such  as  statements  relating to our ability to successfully defend litigation,
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 efforts in defending the litigation may not
be  successful.  These  and  other  risks  are detailed from time to time in our
filings  with  the Securities and Exchange Commission and represent our judgment
as  of  the date of this release. We disclaim any intent or obligation to update
these  forward-looking  statements.


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