VeriCenter, Inc., a leading provider of managed hosting, colocation, and infrastructure services for mid-to-large enterprises, today announced first quarter 2007 revenues of $ 18.2 million, up 25 percent compared to the first quarter of 2006. Revenue was up 6 percent sequentially versus fourth quarter 2006 results, which represents the company`s 27th consecutive quarter of revenue growth since its inception in 2000.

VeriCenter also reported a company record level of total bookings for the quarter (a measurement of the total monthly recurring revenue contracts signed), marking a strong first quarter and a solid start for 2007.

"Our first quarter results show that we are hitting on all cylinders. By every measure—new customers, renewals, customer satisfaction, expense management, revenue, bookings growth and EBITDA performance—Q1 was a big success. This could not have been achieved without the total commitment and performance of our employees, who are focused on delivering the best customer satisfaction of any company in our industry,” said Gray Hall, CEO and president of VeriCenter, Inc. "Our pipeline continues to be very robust, and we expect to continue growing at the pace we have established in Q1."

New customer growth continues to be a key measurement of success in the hosting marketplace, and VeriCenter added 36 new customers in first quarter. The company was recently selected to host a complex Web solution for AssetBuilder, Inc. (AB), a Securities and Exchange Commission (SEC) Registered Investment Advisory firm by Kennon Grose and Scott Burns. AssetBuilder’s goal is to create a significant challenge to traditional financial firms by establishing an affordable, self-service asset management solution for self-directed investors.

“VeriCenter provides the world-class infrastructure we require for hosting our Web site,” said Tony Scott, executive vice president – Technical Services, AssetBuilder. “We know we can rely on VeriCenter to provide the quality of service our customers expect when they meet us on the Web.”

First Quarter 2007 Highlights

    * 27th consecutive quarter of sequential revenue growth since the company was founded in 2000.
    * 23rd straight EBITDA-positive quarter.
    * 36 new customers including IKON, Atlantic Aviation, AssetBuilder, Strategic Materials, Inc., Exchange Solutions Inc., iZoom Online, and Northern Star Generation.
    * First $ 6M revenue month in February 2007, coming just 10 months after crossing the M revenue month threshold in April 2006.

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According to the company, the metrics, combined with strong market growth across the industry, contributed to ViaWest posting its best year financially in the company`s history. ViaWest increased its total revenue growth in 2006 by 53 percent as compared to 2005. The majority of its revenue growth was driven by companies turning to ViaWest to manage their critical data and IT infrastructure needs through colocation and managed hosting services. Revenue from customers utilizing its colocation and managed hosting services jumped 56 percent over 2005.

Roy Dimoff, CEO and Co-founder of ViaWest remarked, “We have watched demand for managed hosting and colocation services steadily increase, particularly among small and mid-size businesses, as companies realize the need to invest in reliable secure hosting, on-demand support and data recovery options. This heightened demand helped ViaWest outperform our 2006 growth targets. Last year, we expanded into Portland by purchasing a Tier-1 datacenter, signed more than 100 new customers and realized a 56 percent increase in revenue for colocation and hosting services in Colorado. Looking ahead to 2007, we are on track to further accelerate our success both organically and through additional expansion opportunities in new markets.``

While the company has steadily built out state-of-the-art datacenters in three states, Colorado continues to reflect a growing market. In 2006, ViaWest grew its revenue in Colorado for colocation and managed hosting services by 56 percent over 2005. Demand from customers in Colorado opting for additional services increased by 100 percent.

ViaWest`s success in 2006 was also fueled in part by the continued growth for managed hosting and colocation services throughout the industry. According to a recent study by IDC, a leading analyst firm, the U.S. web hosting services market was $ 6.9 billion in 2005, and is expected to increase at a compound annual growth rate of 16 percent over the next five years, reaching $ 14.5 billion in 2010. IDC also reports that managed services penetration will continue to grow.

Mr. Dimoff added, "For ViaWest, much of our growth comes from small and mid-size businesses that benefit from the efficiencies gained by utilizing an experienced and established organization like ours to support their critical data and infrastructure needs. Not only do we alleviate the high cost associated with businesses trying to manage their IT requirements on their own, but we bring an enormous amount of technical knowledge and proven expertise that enables companies to spend more time and resources focusing on their core competencies and growing their businesses.”

ViaWest provides colocation, managed hosting solutions and comprehensive services to mid-sized businesses. Headquartered in Denver, Colorado, with additional Tier 1 data centers in Utah and Oregon, ViaWest offers technology infrastructure solutions and critical resources to support business needs. ViaWest currently serves thousands of customers nationwide including Frontier Airlines, the Denver Broncos, Exclusive Resorts and Chipotle. The company was named One of Denver`s Top Corporate Philanthropists and One of Colorado`s Top 10 Mid-size Best Companies to Work For.

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Mr. Sullivan`s extensive industry knowledge and expertise in networking, Internet technology and related application areas, will lead the Internap engineering and information technology teams. With responsibilities for product development, his goal is to grow Internap’s world-class portfolio through a “forward-looking-work” approach that creates a competitive advantage through collaboration and innovation.

James P. DeBlasio, Chief Executive Officer for Internap remarked, “Tim will ensure that Internap continues to deliver end-to-end technologies that make the Internet better for business. This is an exciting time for Internap and we look forward to his leadership in further enhancing our position as a leading technology company.”

Mr. Sullivan began his career with IBM, where his responsibilities included product development and marketing leadership roles in IBM`s Data Networking business as well as the introduction of its network management portfolio. For eight years, Mr. Sullivan served as Vice President at Northern Telecom, which is now Nortel, first directing the Bell Northern Research customer premise, inter-exchange carrier and wireless development operations in the U.S., and later running the Nortel data networking business.

In 1993, Mr. Sullivan founded Connectware, Inc., an ATM network application solutions company, where he served as Chief Executive Officer and President. He then went on to serve as the President of Lucent`s Optical Networking Group with profit and loss responsibilities exceeding $ 3 billion in revenue, after holding positions of Chief Operating Officer and Vice President/General Manager for server and network edge products. Most recently, Mr. Sullivan was President and Chief Executive Officer as well as one of the founders of CebaTech Inc., whose compiler technology produces hardware designs and improves time to market from existing software implementations. Mr. Sullivan holds a B.S. in Electrical Engineering from the University of Notre Dame.

Internap is an intelligent route control solution, developed to provide reliability, performance and security to the Internet, as well as a global integrated content delivery service, designed to enable businesses to stream digital media over the Internet. The company provides patented and patent-pending technologies that address the inherent weaknesses of the Internet, to enable enterprises to deploy business-critical applications such as e-commerce, VoIP, and audio/video across IP networks. The company provides additional solutions, including video and audio streaming, advertising placement, reporting and analysis, live event broadcasting, media asset management, integrated Web hosting and consulting services. Internap currently serves more than 3,000 customers throughout North America, Europe, Asia and Australia.

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