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Interland`s Dedicated Server Assets Purchased by Peer 1

Peer 1 Network Enterprises, Inc. has recently purchased the dedicated server assts of Interland, Inc. Data centers in Miami, Florida, Atlanta, Georgia, and Fremont, California, with an estimated amount of 8,300 dedicated servers and 115,000 square feet were included in the purchase. The tag price ? US $14 million. Peer 1, a high performance Internet infrastructure provider felt that acquiring the servers of the leading Web sites and online services provider would be very beneficial to their business.

According to Tier 1 Researchs February, 2005 Internet Infrastructure Services report, colocation revenues rose 6% year over year in the fourth quarter of 2004, and dedicated standardized hosting experienced an average of 25% increase in revenues over the same time period. Peer 1 Network has been aggressively pursuing acquisition opportunities for over a year, continued Hampson. With such compelling growth numbers in an industry for which we already have significant high performance infrastructure in place, it is clear to see the strategic addition of Interlands dedicated server assets.

C. Geoffrey Hampson, president and chief executive officer of Peer 1, anticipates that all of Peer 1`s business units will benefit significantly from the acquisition. `The accretive acquisition of Interlands dedicated server assets is a key strategic element in the evolution of Peer 1 Network,` he said. `This transaction adds a large customer base, skilled staff, solid dedicated server equipment and three data centers to Peer 1 Networks existing infrastructure. Add that to Peer 1`s specialization in customer service and high performance network, and the innovation of our subsidiary ServerBeach Ltd, and you have an outstanding fit.`