Hostway Continues Global Expansion With Acquisition of Mission Critical Data Center and Hosting Business in Korea

Chicago, IL—January 13, 2004—Hostway Corporation, a global leader in Web hosting and managed Internet services, today said it has purchased a major South Korea-based enterprise hosting business, a move that raises Hostway's global profile and enables the company to move aggressively into the Asian market.

Under the terms of the deal, Hostway acquired all the assets of Enterprise Networks' (EPN) Internet data center facility in Bundang, South Korea including a 160,000 sq ft. building and the surrounding property, along with its customer base. EPN, a leading network services provider in South Korea, built the $40 million state-of the-art Bundang facility in 2000 for its mission critical hosting needs.

The Bundang data center acquisition puts Chicago-based Hostway among the top providers of managed hosting services to the enterprise market in Korea, and positions the company for quick expansion into other Asian countries.

"This acquisition gives Hostway a world-class facility to serve our enterprise level customers in Korea," said Lucas Roh, CEO and President of Hostway. "It also perfectly positions us for additional growth, not just in Korea, but in China and Japan as well."

Hostway has operated a Web hosting business in Seoul since January 2000. Most of EPN's employees based in Bundang, a suburb of Seoul, will join Hostway Korea as part of the acquisition.

"Today's announcement supports Hostway's 3G's strategy of 'Global Expansion,' 'Growing An Efficient Technology Infrastructure,' and most importantly delivering "Great Customer Service and Support," Roh added. "This acquisition will accelerate our ability to deliver top-notch managed technology services to enterprise-level customers in Korea and in surrounding countries. It will strengthen our platform for revenue growth throughout the Asia/Pacific region."

Hostway has compiled a successful record of integrating acquired companies smoothly and delivering superior service to customers of the acquired companies. Recent acquisitions include NetNation, Vancouver; GlobalHost, Sydney; Iarna, London; and Neutelligent, Tampa.

The acquisition immediately enables all EPN hosting customers to use any of Hostway's services, including shared and dedicated Web hosting and various other managed Internet services. EPN customers also will benefit from the global network of hosting centers that Hostway operates around the world.

Specific financial terms of the acquisition were not announced.