HOSTGLOBE COMPLETES FIRST ROUND OF FINANCING
Blue-chip investors display confidence in company's strategy 

DALLAS (March 31, 2000)

HostGlobe, a provider of Web hosting services to small- to medium-sized businesses, has announced the completion of its first round of financing and said it will use the funds to expand its sales and marketing efforts.

The financing involved a number of high-profile private investors, including: Richard C. Blum, chairman of Blum Capital Partners; Roy Bostock, chairman and CEO of The McManus Group, Inc.; Frederic V. Malek, chairman of Thayer Capital Partners; Gil Maurer, director of Wit Capital; Larry Murphy, chairman and founder of The Lawrence P. Murphy Company, LLC, and former director of strategic planning for The Walt Disney Company; Richard Nanula, chairman and CEO of BroadBand Sports, Inc.; Michael Ovitz, chairman of Lynx Technology Group; Alan D. Schwartz, executive vice president of Bear Stearns; Gretchen Shugart, president of eMedia Capital, LLC; and Gary L. Wilson, chairman of Northwest Airlines. 

"We are extremely pleased to secure the support of this prestigious group of investors," said Mitch Gervis, President and co-founder of HostGlobe. "With this support, a growing client base, and a strong business plan, we expect to scale the business quickly and become a leading Web hosting provider throughout the world."

HostGlobe offers a full range of Web hosting services. Founded in March 1999, the company currently hosts thousands of domains worldwide.

"There is a tremendous void in quality customer service for small- to medium-sized businesses that is both cost-effective and comprehensive within the Web hosting industry," said Derek Wilson, CEO and co-founder. "We view customer service and reliability as central to our efforts to grow the business, so we and our investors feel that this is a great time to get in on the ground level of a market that has been projected to hit $57 billion by 2003. We look forward to another successful round of financing in the future to expand our facilities and capabilities."

Dallas-based HostGlobe offers Web design, e-commerce solutions, search engine promotion, co-location, dedicated servers, and audio/video streaming to small- and mid-sized companies. With toll-free technical support, clients ranging from the beginner to the technically-savvy can access technical associates at their convenience. The full-service hosting company has the ability to help facilitate the growth of a client’s business, the resources to grow with the client’s business as hosting needs increase, and the technology to ensure secure service.