InFlow, Inc. Raises an Additional $35 Million in Equity Capital

Announces Industry Leading Q2 Growth



Denver, CO — InFlow, Inc., a leading provider of Internet Data Centers (IDCs) and managed hosting services, today announced it has raised an additional $35 million in private equity financing. This additional capital will be used for continued investment in the Company’s 18 operational IDCs and to develop additional services to help companies implement and manage their e-commerce objectives.

“Inflow’s ability to raise capital in tough economic times is a recognition of Inflow’s past and future successes in the marketplace,” said Scott Perper, Managing Partner, First Union Capital Partners. “Inflow has signed more than 250 new customers since the end of last year and its revenue has grown by more than 50% – that kind of momentum is what it takes to raise capital today.”

“Companies today are being more methodical than ever when choosing an outsourcing partner. Financial stability is on all prospects’ minds,” said Art Zeile, Inflow’s chief executive officer. “This equity financing shows a company that provides world-class customer service has the support of the financial community. Inflow now adds financial stability to a world-class service reputation.”

Additionally, Inflow announced operating results for its second quarter ending June 30, 2001. Quarterly revenue increased 19 percent over the first quarter, driven by new customer growth and higher penetration of managed services to existing customers. During the second quarter, Inflow signed 135 new customers, bringing total contracted customers to more than 625.

To date, Inflow has raised more than $330 million in capital. Principal investors in this round include First Union Capital Partners, Meritage Private Equity Funds, Spire Capital, DLJ Merchant Banking and Cornerstone Equity Investors.

“We continue to see demand in the market for our services,” said Jim McHose, chief financial officer for Inflow. “Our managed services are gaining a lot of traction with enterprise-class customers. Attractive customer and revenue growth rates have-once again-allowed Inflow access to additional capital.”

Inflow’s suite of services includes managed firewall solutions, data storage, applications, equipment and web site monitoring and load balancing, as well as 100% Internet access to ensure customers’ applications are available 24 hours a day, 7 days a week.

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 600 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.