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[Sep 5, 2003] Hostway Continues International Growth Strategy With Acquisition of Two Web Hosting Firms

Sydney– Sep 5, 2003– Hostway, a global leader in web hosting, announced today that it has acquired two web hosting firms enabling the company to provide superior value and easier access to the latest hosting innovations worldwide.

The acquisitions of Vancouver-based NetNation Communications and Florida-headquartered Neutelligent, will add to Hostway’s existing base of customers, enhancing its position as one of the leading web hosting providers for medium to large organisations globally.

By acquiring Vancouver-based NetNation Communications, Inc., a pioneer in web hosting and domain name registration, Hostway will accelerate expansion in Canada, which follows its market entry into Australia earlier this year.

In addition, by acquiring, Neutelligent, a Tampa, Florida-based Web hosting provider that specialises in dedicated servers and co-location services, Hostway will gain new data centre hosting facilities and an existing customer base.

With these acquisitions, Hostway now provides domain name registration, shared hosting, dedicated hosting, complex multi-server hosting, high-bandwidth hosting and co-location, making it a total hosting provider.

While NetNation will operate as an independent brand and a wholly owned subsidiary within Hostway’s group of companies, the Neutelligent Florida hosting centre will operate as a wholly owned subsidiary under the Hostway brand and will offer medium to large companies new options in dedicated servers, co-location services, and complex hosting products.

The Neutelligent deal means that all customers of the Tampa hosting centre can place their servers in any of Hostway’s six global locations, including Sydney. It also quickens the pace of Hostway’s strategic push into the enterprise hosting market, adding to its client base the Florida facility’s 2,000 dedicated and co-located servers.

Lucas Roh, CEO of Hostway Corporation, said, "We sought out Neutelligent and NetNation because of their long standing reputation for providing customers top-notch hosting services. They have outstanding credentials and experience, and share deep dedication to customers, which makes it a perfect fit with Hostway.”

Hostway has compiled a successful record of integrating acquired companies smoothly and delivering superior service to customers of these companies. Last year, it successfully integrated UK-based Iarna, a leading UK hosting company, into its operations.

"These deals positions us to better serve our and are further steps in executing our strategy of becoming a total global hosting provider that is dedicated to providing the best hosting services to business customers everywhere,“ Mr Roh added.

Staying consistent with its global expansion strategy, Hostway has offices in US, UK, Netherlands, Australia, Korea, and Canada and is now servicing approximately 300,000 customers globally.

NetNation is a registered trademark of NetNation Communications, Inc. and DomainPeople is a trademark of DomainPeople, Inc. All other products and company names are the trademarks or registered trademarks of their respective owners.

For more information on Hostway Corporation please contact:

Terri Stewart-Williams
Hostway Corporation
terri@hostway.com.au
Tel: 02 9922 6300

David Bass/Jo Balfour
LEWIS PR
davidb@lewispr.com/joanneb@lewispr.com
Tel: 02 9901 4235