Inflow Attains EBITDA Positive

10/30/2003

Denver, CO — (BUSINESS WIRE) — Today, Inflow

Inc., a leading provider of outsourced data center and managed hosting

services for companies with critical applications, announced it reached a

major landmark in its drive for profitability with the attainment of

company EBITDA positive status for the third quarter of 2003.

“We are very excited to have reached this important step toward

complete financial independence,” said Mark Hughes, chief financial

officer for Inflow. “We have diligently planned for this event and are

ahead of schedule, with more positive milestones anticipated soon. Our

ability to achieve this financial milestone is a result of our company

focus on process and automation, which drives efficiencies while

increasing revenue. Our streamlined operations model, combined with our

minimal operating costs, continues to fuel our growth.”

Inflow generated $12.1m of total revenue in the third quarter,

billing 804 customers as of September 30, 2003. Top line revenue

increased 15 percent over the prior quarter, driven by significant new

customer additions. EBITDA positive status was realized due to increased

revenue and continued cost controls.

Hughes said that due to continued, strong new contract bookings in

the queue for installation along with a stable expense base, Inflow

projects to reach cash flow positive in early 2004.

“Our team has worked incredibly hard toward this very important

achievement,” said Art Zeile, Inflow chief executive officer. “We want

to thank our customers and communities for their outstanding support and

for helping us to attain this position. We will continue to focus on

providing the best service in the industry.”

About Inflow

Inflow provides facilities-based IT solutions to companies with

critical business and network applications. Founded in 1997, Inflow

opened its first Internet Data Center (IDC) in June 1998 and currently

serves more than 800 customers from its IDCs in 12 markets throughout

the U.S. Leveraging its expertise in application, network and datacenter

management, the company is able to deliver the most reliable, secure,

scalable and cost-effective outsourcing solutions available. Core

services are offered within Inflow’s three primary lines of business:

Application Hosting and Management, Business Continuance and Disaster

Recovery, and Enterprise Datacenter Management. In its sixth year of

business, Inflow generated approximately $50.7 million in total revenues

last year. Investors include Meritage Private Equity Funds, Centennial

Ventures, Telecom Partners, Spire Capital Partners, The Halyard Capital Fund, GE Capital and PNC Equity.

Inflow has recently received ISO 9001:2000 certification. Lloyd’s

Register Quality Assurance (LRQA), a worldwide leader in quality systems

evaluation, concluded that Inflow should be registered to ISO 9001:2000

as it has successfully completed audits for Inflow’s Quality Management

System. ISO 9001:2000 is an international standard of quality. Less

than one percent of companies in the U.S. are registered or certified to

ISO 9001:2000.

For additional information and IDC locations, please visit www.inflow.com or call 877.321.2464. For more information on Inflow’s corporate strategy, please call Jim McHose at 303.942.2858.