Interland Completes Acquisition of Web Hosting Firm Hostcentric


Atlanta, GA — (Business Wire) — Interland, Inc.

(Nasdaq: INLD), a leading provider of Web hosting and online services

for small and medium-sized businesses (SMBs), today announced the

closing of the previously announced acquisition of Hostcentric. In

return for all the outstanding shares of the company, Hostcentric

shareholders received $3 million in cash and approximately 13.5 million

shares of Interland stock.

“The acquisition of the Hostcentric organization should have an

immediately positive financial impact,” said Joel J. Kocher, Interland’s

chief executive officer. “We are pleased to close the scale-driven

acquisition chapter of Interland’s strategy with the consummation of

this attractive transaction,” said Kocher.

As previously announced, the acquisition of Hostcentric will enhance

Interland’s scale and widen its lead in the small-business hosting

market through the addition of tens of thousands of shared Web sites,

hundreds of dedicated servers and more than 1,000 reseller channel

partners. In addition, the combined customer base will benefit from the

continued availability of Hostcentric services currently not offered by


“Hostcentric customers, employees and shareholders should benefit

from joining Interland given the company’s industry leadership, strong

financial position and future prospects. We look forward to contributing

to Interland’s success,” said Greg McKown, Hostcentric’s chief

executive officer.

Interland’s management plans to comment further on the positive

financial impact of this transaction during its upcoming third-quarter

fiscal year 2003 earnings announcement and analyst conference call.

About Interland

Interland, Inc. (Nasdaq: INLD) is the leading Web hosting and online

services company dedicated to helping small and medium businesses

achieve success by providing the knowledge, services and tools to build,

manage and promote businesses online. Interland offers a wide selection

of online services, including standardized Web hosting, e-commerce,

application hosting, and Web site development, marketing and

optimization tools. For more information about Interland, please visit

About Hostcentric

Formed in 2000, Hostcentric is a provider of a broad range of Web

hosting services to SME and enterprise customers. More information about

Hostcentric can be found at

The foregoing contains “forward-looking statements” which are based

on management’s beliefs as well as on a number of management assumptions

concerning future events and on information currently available to

management. Such forward-looking statements are not a guarantee of

performance and are subject to a number of uncertainties and other

factors, many of which are outside Interland’s control, which could

cause actual results to differ materially from such statements.

Statements regarding the future financial results expected to result

from an acquisition are dependent upon the accuracy of numerous

assumptions and projections relating to transition and integration

costs, customer churn and other factors, and no assurance can be given

of the accuracy of such statements. For a more detailed description of

factors that could cause a difference between forward-looking statements

and actual results, please see Interland’s registration statement on

Form S-4 filed in connection with the Hostcentric transaction (SEC File

no. 333-104612), as well as its most recent Form 10-K, Forms 10-Q and

Forms 8-K and other filings with the Securities and Exchange Commission.

Interland disclaims any intention or obligation to update or revise any

forward-looking statements, whether as a result of new information,

future events or otherwise.