Hannover/Munich/London, 9 May 2005 —Hostway Corporation, a global leader in web hosting and managed services, today announced the acquisition of German server and co-location provider Server Service GmbH. The German organisation currently has more than 5,000 web servers racked in 2 multi-redundant, state-of-the-art datacentres located in Hannover and Frankfurt, and is recognised as one of Germany’s best performing Service Providers.

Serving customers both small and large since 1998 and with eight locations in the US, Canada, the UK, the Netherlands, Germany, Korea, and Australia, Hostway is one of the top 5 web hosting companies in the world. Hostway GmbH, the corporation’s German operation, has been in business since April 2004. It is anticipated that the merger will result in additions to an already expansive hosting product portfolio for the two German companies. This already includes Windows® 2003, Linux, and ColdFusion virtual hosting, a proprietary Ecommerce platform called Merchant Manager, along with a complete range of Virtual Private Servers and competitively priced Dedicated Servers.

With over 300,000 hosted sites, and managed by a 24 hour workforce of 35 based in Hannover and Frankfurt, Server-Service counts itself as one of the biggest Internet Service Providers in Germany. Their product portfolio spans complete Managed Hosting Services and the rental of specialist Co-location space, through to correspondingly fast Internet Backbone connectivity and 24/7 network monitoring from the company’s Network Operating Centre and Headquarters in Hannover. In conjunction with its sister-company FirstHop/ABP AG, the Server Service group achieved a 12 percent growth in profits during 2004.

It is expected that the fusion of Server-Service GmbH and Hostway GmbH will enable both companies not only to expand their respective offerings, but also to consolidate and strengthen their market share. The German dedicated server market promises room for further growth, and plans are afoot to enlarge Server-Service’s Managed Hosting and Co-location operations in both of their locales. The company’s Hannover datacentre already boasts Co-location facilities that measure 3,200 square metres. Server-Service’s management structure remains unchanged.

“The merger with Hostway makes it possible for us to offer our customers a One Stop Shop for hosting and connectivity Services,” stated Cord Bansemer, Server-Service Director. “Our chief purpose, just like Hostway, is to be as uncompromisingly customer-focused as possible. The merger lets us not only exchange know-how, but also benefit from synergies created between departments inside both companies.”

“In Server-Service, Hostway has found an attractive partner in the German ISP market,” explains Rob Lovell, Director Hostway UK. “In terms of its Server housing and Co-location facilities it fits our proposition very well. Hostway customers in Germany who are looking for value-for-money Server Co-location services now have two options to choose from, with various locations around the country.”

About Server-Service
Founded in 1997 and with headquarters in Hannover, Germany, Server-Service GmbH is amongst the most established and experienced companies of its kind. It is one of only a few hosting providers to own a modern, high performance Datacentre in the area, with an additional high-end facility in Frankfurt. Both offer multiple redundancy and the fastest broadband connectivity in Germany. Thanks to this, Server Service are able to offer a service that is highly differentiated from their competition.

Server-Servicetodayhost over 300,000 customer websites in total, including several household names from German heavy industry, publishing, web design, and other Internet Service Providers. For further information, please visit http://www.server-service.com



About Hostway Corporation

Hostway Corporation provides Web hosting and managed services to more than 300,000 customers worldwide. Hostway helps individuals, small businesses and large enterprises achieve more value from state-of-the-art Web-based technologies by reducing their complexity and cost. Founded in 1998, Hostway is one of the five largest Web hosting companies in the world with offices in North America (Chicago, Tampa and Vancouver), Europe (London and Amsterdam), Asia (Seoul) and Australia (Sydney). For more information about Hostway Corporation, please visit www.hostway.com or call 1-888-290-5170.