InFlow Announces Impressive Third Quarter Growth

Customer Demand and New Services Drive Top Line Growth; Revenue Increases 15% over Second Quarter



Denver, CO — InFlow, Inc., a leading provider of facility-based IT outsourcing solutions and Internet Data Centers (IDCs), today announced its third quarter results. Having just reached its 4-year anniversary, Inflow’s solid financial status and overall customer satisfaction continues to attract customers needing outsourcing partners for their critical web-based initiatives.

“Three straight quarters of solid revenue growth demonstrates our strength and long-term commitment in this industry,” said Art Zeile, Inflow’s chief executive officer. “This stability allows us to expand our product offerings in response to customers’ current needs and the increasing demand in the market for our services.”

Inflow’s third quarter 2001 revenue increased 15 percent over the second quarter 2001. The company attributes the additional revenue to new customer growth and higher penetration of managed services among existing customers. During the third quarter, Inflow signed more than 110 new customers bringing the company’s total customer count to more than 650.

Inflow has recently expanded its existing IDC- based product line to include:

• Operational Process Outsourcing (OPO) – Helps enterprises more efficiently run their internal IT efforts. Utilizes Inflow’s own best-of-class processes and systems to help manage e-commerce initiatives from design to deployment to ongoing maintenance saving money, time and resources.

• Intelligent Routing Services (IR) – Internet traffic is routed using proprietary Inflow technology and tier-one Internet backbones to significantly improve the website performance for end users. Website visitors will establish consistently faster download times and improved Internet reliability, ultimately reducing abandonment and increasing usage.

• Managed Security Solutions – New managed firewall solutions provide additional options to customers needing superior protection of their critical networks and data based on Cisco Systems (NASDAQNM: CSCO) industry leading firewall solutions. This product offering will expand our existing firewall solutions with Checkpoint Software.

• Application and Infrastructure Management Services (AIMS) – Solutions that offer Inflow customers technical expertise to guide them through the entire development cycle – from site design to implementation to management of the production environment.

To date, Inflow has raised more than $330 million in capital. Principal investors include Wachovia Capital Partners (formerly First Union Capital Partners), Meritage Private Equity Funds, Spire Capital Partners, DLJ Merchant Banking, Cornerstone Equity Investors and BMO/Halyard Partners.

About Inflow

Companies with critical Internet applications trust Inflow’s Internet Data Centers (IDCs) and managed hosting services, which enhance Web performance, ensure Internet uptime and deliver the highest customer satisfaction. Inflow guarantees 100 percent Internet availability through multiple Tier-1 ISP networks, offering a highly scalable, reliable service. Inflow’s cost-effective services, backed by certified engineers and first-rate customer service, allow companies to focus on their core businesses.

Launched in 1997, Inflow has raised more than $330 million. The company currently employs 500 people and serves more than 650 customers. Inflow has 18 IDCs in the United States and Europe with more than 600,000 square feet of space under operation. For additional information and IDC locations, please visit or call 877-321-2464.