Interliant Signs Exclusive 5-Year OEM Hosting Deal with Terra Lycos Mexico; ASP Extends Reach into Mexican & Latin American Market

Business Wire, April 24, 2001

Business Editors/Hi-Tech Writers

PURCHASE, N.Y.--(BUSINESS WIRE)--April 24, 2001

Interliant, Inc. (NASDAQ:INIT), a leading global application service provider (ASP), today announced that is has signed an exclusive five-year deal with Terra B2B, a division of Terra Lycos (NASDAQ:TRLY) in Mexico, under which they will OEM and privately brand Interliant's Web hosting services. Initially, the focus will be on shared and dedicated server products that are targeted toward traditional small and medium-sized enterprises. Terra B2B will provide these services to the rapidly expanding Mexican and Latin American markets.

Interliant will provide its INIT Web Hosting services, which include shared Web site hosting, dedicated server hosting, Web site monitoring, Internet connectivity, and network services. Terra B2B also will offer an array of Interliant's value-added services, including e-commerce, application hosting, managed hosting and rental enterprise solutions for the organization's growing customer base to augment the Web hosting arrangement. As of December 31, 2000, Interliant had approximately 63,000 fee-for-service Web and application-hosting clients under Interliant's and subsidiary brands as well as approximately 16,000 clients on the behalf of several prominent OEM clients in its four US (Atlanta, Houston, Columbus OH, and Vienna VA) and two European (London and Paris) data centers.

"We needed a hosting partner with a global reach, an impressive hosting infrastructure, and the ability to provide additional value-added services to our customers," said Arturo Galvan, CEO Terra Lycos Mexico. "Interliant is among the few companies capable of providing the complex Web hosting solutions we need to support this effort. When you tie in the e-Commerce, managed services, and application hosting solutions, Interliant is the only company with the breadth we require to meet our customers' needs."

The Terra B2B division of Terra Lycos Mexico provides e-business and Web commerce solutions and services that enable companies to develop an Internet presence. Terra B2B specializes in the development of B2B, aimed specifically at the financial and buying co-operative sectors of the Mexican and Latin American markets. With more than 1,000 hosted customers, Terra B2B found in Interliant a partner with proven hosting and outsourcing capabilities that would allow Terra to grow its business substantially without placing a burden on its infrastructure and capital resources. Additionally, Terra desired a partner who could meet its high standards of quality, reliability, and customer care as well as the ability to reduce the strain on its in-house resources.

In addition to extending Interliant's reach into the Mexican and Latin American market, the deal further crystallizes the company's continuing efforts to generate one-to-many hosting agreements with major partners.

"This is a terrific example of the value Interliant provides to its OEM partners," said Jon Naphin, vice president of Sales/OEM Hosting for Interliant. "An industry leader like Terra B2B in Mexico can rely on our expertise and infrastructure to enhance its offerings and to help create 'stickier' customer relationships. In addition, through this agreement, we believe we have an opportunity to develop additional business with Terra B2B and to penetrate the rapidly growing Latin American and Spanish-language markets with our hosting solutions."

Interliant is currently deploying the first round of hosting solutions to Terra B2B, and expects to complete the initial rollout to customers before the end of the second quarter of 2001.

About Terra Lycos

With corporate headquarters in Barcelona, Spain and operating headquarters in Waltham, Mass., Terra Lycos is a new global Internet network operating in 41 countries in 19 languages, reaching 91 million unique monthly visitors worldwide. Created by the combination of Terra Networks, S.A. and Lycos, Inc., in October 2000, Terra Lycos is one of the most popular Internet networks in the U.S., Europe, Asia, Canada and Latin America, and is the leading portal to Spanish- and Portuguese-speaking markets. The Terra Lycos network of sites includes: Lycos.com, Terra.com, AnimationExpress.com, Angelfire.com, ATuHora.com, Gamesville.com, HotBot.com, htmlGEAR.com, Invertia.com, Lycos Communications, Lycos Zone, Matchmaker.com, Quote.com, Rumbo.com, Sonique, Tripod.com, Webmonkey.com, WhoWhere.com and Wired News (Wired.com), among others. Each network property offers distinct features and targets a specific Web audience through unique programming and branding, and each is poised for continued audience growth. With broad strategic partnerships, alliances and joint ventures with Bell Canada, Bertelsman AG, Mirae Corporation, Sumitomo Corporation, Telefonica Moviles, BBVA, Amadeus and Telepizza, Terra Lycos is the Internet leader in content, community and commerce, and also is uniquely poised for the convergence of media, wireless communications and interactive content in the world. For more information, visit http://www.terralycos.com/press/pr_1_2_2.html