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Frost & Sullivan Honors Interland for Market Leadership Strategy

2/11/2004

Palo Alto, CA -- (Business Wire) -- Today, Frost & Sullivan presents the 2003 Market Leadership Award for Shared Hosting to Interland (Nasdaq:INLD - News) for its indisputable market share, superior shared hosting products and the ability to successfully execute growth strategies in a dynamic industry.

The shared hosting market is one of the more price-competitive markets in the United States, making it difficult to gain market share and keep it over time. Atlanta-based Interland, a leading Web hosting and online services company, is working to change that trend.

Interland's success in growing its shared hosting market share is due to its aggressive acquisition strategy over the past two years that resulted in disparate small and medium sized enterprise (SME) focused hosting brands being brought into the Interland family. Additional market share was obtained by purchasing customer accounts from other hosting providers that exited the SME focused hosting market.

Over the course of 2003, the shared hosting market was the only Web hosting segment in the U.S. market to record growth, and Interland's indisputable market share lead bodes well for the company.

As the shared hosting market stabilizes and settles into a slow but sustainable revenue growth path, Interland is expected to remain one of the key players in the shared hosting segment throughout the rest of the decade. Interland's focus on sustainable revenue growth earned the company Frost & Sullivan's Market Leadership Award.

This honor is given to the company that has exhibited market share leadership through the implementation of market engineering strategy. The recipient has displayed excellence in all areas of the Market Leadership process, including the identification of market challenges, drivers and restraints, as well as strategy development and methods of addressing these market dynamics. Furthermore, the recipient has continually demonstrated solutions for monitoring market changes and for implementing superior market engineering strategies.

"Interland's efforts to concentrate on meaningful metrics such as actual revenues rather than URLs hosted and number of customers served leads me to believe that management understands a financially viable business must rely on revenues earned," said Jarad Carleton, Frost & Sullivan senior industry analyst. "It has taken the industry years to realize that measurements such as revenue earned, customer satisfaction, performance and reliability are what define a successful and sustainable Web hosting business; fortunately Interland has learned from its past mistakes and those of competitors in the market. I expect to see Interland continuing to serve the SME market and raising the hosting service bar further for years to come."

About Interland

Interland Inc. is a 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 www.interland.com.

About Frost & Sullivan

Founded in 1961, Frost & Sullivan is recognized as a global leader in growth consulting. Frost & Sullivan Awards are presented to companies that demonstrate excellence in their industry, commending the diligence, commitment and innovative business strategies required to advance in the global marketplace. Frost & Sullivan rigorously analyzes specific criteria to determine award recipients in a vast variety of market industries and landscapes. For further information, visit www.awards.frost.com.