SYNACOR AND GRANDE COMMUNICATIONS® PARTNER TO LAUNCH ‘GRANDE WEB PREMIUMS’ HIGH-SPEED INTERNET SERVICE

Sports, Family and Security Packages Are Among New Subscription Tier Offering

January 3rd 2005

BUFFALO, NY and SAN MARCOS, TX – January 3, 2005 – Synacor,
the leading provider of technology supporting the delivery of bundled online
services, and Grande Communications® are partnering to offer three of the best
online content packages exclusively for Grande customers. Subscribers of Grande
high-speed Internet services can receive Web Premiums, top-tier packages that
feature an array of the most popular entertainment, sports, family and
educational subscription services bundled to enhance the company’s existing
broadband products.

News, security, family and sports packages offer a great
value proposition for Grande Communications customers and range from $3.50 to
$9.95 per month for a host of services that include AmericanGreetings.com,
Bsecure™ security solutions, Clever Island, CNN NewsPass and CNN QuickCast,
Encyclopaedia Britannica, FOXSports.com, MLB.com, Motor Trend, MusicNow Radio,
NASCAR.COM’s TrackPass with PitCommand, Rivals, Shockwave.com GameBlast,
SportingNews.com’s Fantasy Source Baseball, SportingNews.com’s Fantasy Source
Football and weather.com®. For a complete list of packages, please visit
www.grandecom.net.

"Packages that contain strong brands are an important factor
to our growth, but only profitable if the media delivery can be made
cost-effective," said Grande Vice Chair and CEO William E. Morrow. "Teaming with
Synacor to launch Grande Web Premiums further extends the value of our services
to our customers by offering the best online premium content available."

Grande Communications will use Synacor’s platform, Portelus,
to supply the content, authentication, provisioning and unified login for Grande
Web Premium subscribers.

Grande will continue to offer convenient services for its
customers, including email, local television listings, product user guides,
online bill payment and local payment locations, as well as, free access to
current local weather, headline news, lottery results, stock market figures,
horoscopes, music, movie listings and local publications.

"Grande Communications recognizes the value of packaging
strong brands and valued services in their effort to deliver a comprehensive
broadband experience," said Ron Frankel, President and CEO, Synacor. "We are
excited to partner with Grande as the company continues to provide unique and
compelling features to its broadband services."

Synacor’s Portelus platform enables ISPs to offer the
Internet’s most comprehensive selection of the best online content to their
subscribers with the added benefits of single sign-on, as well as integrated
monthly billing. Using Synacor’s platform, access providers can customize their
offerings into different subscription tiers and enable consumers to enjoy a wide
range of popular online services at an affordable price.

About Synacor
Synacor enables Internet Service Providers (ISP) to easily bundle a wide variety
of subscription only premium, entertainment, and value added services into their
Internet access products. Synacor has integrated over 30 content and service
providers into its platform, Portelus, providing great value to consumers. This
network is the most complete catalog of subscription service providers available
from one source today. Portelus is private label reinforcing the brand of the
ISP. It also allows them to easily bundle, provision, support, and bill for
multiple services offered as part of a single rate code. Synacor’s Portelus
product suite is currently deployed and has achieved successes that exceed the
expectations of its customers. For more information visit
www.synacor.com

About Grande Communications
Headquartered in San Marcos, Grande Communications is building a deep-fiber
broadband network to homes and businesses from the ground up. Grande’s 800
employees deliver high-speed Internet, local and long-distance telephone and
digital cable television services over its own advanced broadband network to
communities in Texas. Grande’s bundled service area includes portions of Austin,
Corpus Christi, suburban northwest Dallas, Midland, Odessa, San Antonio, San
Marcos and Waco. For more information, visit www.grandecom.com