Interland Offers New Customized Service Plans

January 20, 2005
January 2005-- Interland (Nasdaq: INLD), a web hosting and online services provider for small and medium-sized businesses, today announced the general availability of its two newest dedicated hosting plans, Managed Services Bronze Support and Managed Services Gold Support.

These plans include standard server monitoring, live 24x7 phone support and hardware replacement guarantees but also offer additional services tailored to their customers’ needs. Patches and updates for operating systems, Microsoft IIS software and Apache Web servers are included with both plans. In addition, both plans provide server anti-virus installation, patching and definition update for Windows.

Interland's Managed Services Gold Support plan also includes Microsoft, Apache and DNS domain configuration and management, email account management, and server log file rotation. In addition, customers of both Interland plans are hosted exclusively on IBM eServer xSeries hardware, providing them with the technology foundation and performance needed to run the latest and most reliable Internet-based applications.

"Our new Managed Services hosting plans give IT professionals and businesses of all sizes the ability to outsource critical hosting services to our professional staff at a fraction of what it would cost to bring that same expertise in-house," says Alfredo Narez, director of marketing for Interland's dedicated hosting service group. "Our team of managed services professionals are among the most highly trained in the industry and because of our size we have unparalleled access to some of the biggest hosting technology vendors. As a result Interland managed services customers receive what we feel is the highest level of service and technology available in the dedicated hosting market place today."

Interland recently reported their income earnings for the last quarter. The company reported revenues for the quarter of $23.1 million and a net loss of $3.2 million, or $0.20 per share. EBITDA from continuing operations(1) for the first quarter was positive $2.0 million, and capital expenditures were $0.8 million.

Allen L. Shulman, Interland's Senior Vice-President and Chief Financial Officer stated, "This quarter's results reflect encouraging progress as we exceeded announced expectations of positive EBITDA for the second consecutive quarter. Our average monthly negative net MRC change(2), which was $115,000 for the fourth quarter of 2004, was reduced by 33% this first quarter of fiscal 2005, to just $77,000. We also reduced the gross churn in our shared line of business to an average of just 2.5% per month, reflecting continuing improvement from the 2.8% level in the previous quarter. At the same time total operating costs and expenses have been reduced by 22% from the same quarter last year, and our net loss per share has been reduced by 62% over the same period."

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