Micron Electronics Announces Letter of Intent to Acquire Web-Hosting Provider Lightrealm, Inc.; Acquisition Would Boost Company Into Top Five Web Hosting Providers - Company Business and Marketing

Edge: Work-Group Computing Report, Nov 1, 1999

One week after introducing "Subscription Computing" and citing Web hosting as a core business, Micron Electronics, Inc. (www.micronpc.comz) announced Wednesday a non-binding letter of intent to acquire Lightrealm, Inc. -- a Kirkland, Washington-based Web hosting and Internet access company.

With annual revenues of approximately $9 million and approximately 42,500 paid accounts, Lightrealm is a leading Web hosting and Internet Services company. With the completion of this acquisition, Micron Electronics will rank as one of the top five Web hosting providers in the United States, based on number of paid accounts.

Once the transaction is consummated, Micron Electronics, through a wholly owned subsidiary, will acquire all of the outstanding stock of Lightrealm in exchange for an undisclosed amount of cash. The transaction is subject to execution of a definitive agreement and approval by Micron's Board of Directors. A definitive agreement is expected by December 1, 1999.

"This acquisition of Lightrealm represents our commitment to being a leader in the `e-services' and Web hosting businesses," said Joel J. Kocher, chairman and CEO of Micron Electronics, Inc. "It also bolsters our e-services infrastructure, complements our Web and applications hosting offerings, and enhances our ability to deliver the benefits of Subscription Computing to micronpc.com customers."

Lightrealm, one of the world's largest privately owned Web hosting companies, is a leading Web hosting and Internet Services company which offers small- and mid-sized business customers the mission-critical Internet tools and applications to execute daily operations and achieve key business objectives. With an average monthly growth rate of 10 percent, Lightrealm provides its approximately 10,000 Web-hosting subscribers with a suite of Internet and information management services, including:

-- Dedicated Server co-location

-- Web hosting

-- DSL, ISDN, and Frame relay

"Micron Electronics' management and business philosophy is directly aligned with our operational strategy," says Lynn Kasel, CEO and co-owner of Lightrealm. "The combination of their resources and our experience in Web hosting will allow us to accelerate our growth and deliver more comprehensive services to current and potential customers than ever before."

Micron Electronics' Web Hosting Services

The acquisition of Lightrealm enhances the hosting and e-commerce capabilities of Micron Electronics. The company last quarter also acquired NetLimited, Inc., dba, HostPro -- a leading Web and applications hosting provider that boasts subscriber growth of more than 10 percent a month, making it one of the fastest growing providers of Web-hosting services. HostPro was rated the "World's Number One Hosting Company" by independent authority HostIndex.com, based on its innovative Web hosting and e-commerce solutions and capabilities.

HostPro offers secure e-commerce and content solutions for a range of customers -- from the novice "e-tailer" to the sophisticated e-business owner. Its NetStore, NetExecutive, ShopSite Manager and ShopSite Pro e-commerce bundles provide front-office solutions -- such as e-commerce templates, shopping carts and credit-card authorization -- as well as critical back-office applications -- such as customer tracking and inventory control.

Subscription Computing

Last week, micronpc.com announced a new, total computing solution called "Subscription Computing." As part of this initiative, Micron Electronics is making strategic investments to build its e-services infrastructure and deliver customized computing solutions to customers on a single monthly bill under the micronpc.com brand name. Subscription Computing, or "computing on demand," enables CIOs and technology managers to choose from an extensive menu of e-services and hardware products and services, upgrading the "subscriptions" as they grow their businesses.

Micron Electronics, Inc. is a leading, direct manufacturer of personal computers, business Internet offerings and business-to-business e-commerce services for the commercial, government and education markets. Under the micronpc.com, HostPro, Micron Internet Services and SpecTek brand names, the company offers a wide range of innovative product, services and support. It provides award-winning computer products, such as personal computers, servers, notebooks; SpecTek semiconductor memory products; and a range of data communications services, such as Web hosting, connectivity and e-commerce services. Micron Electronics has more than 2,600 employees and $1.7 billion in revenues. The company can be reached at www.micronpc.com.

Lightrealm connects businesses to the Internet and provides an array of Web hosting and e-commerce packages based on a powerful virtual dedicated server technology. Lightrealm's VServer Web hosting product line provides quality Windows NT, Unix and Linux server options. The company also offers Internet access -- from 56K dialup, to ISDN, DSL and frame relay, through redundant T3 and OC3 pipelines that are connected directly to Internet backbones. Dedicated Web hosting solutions and co-location services are also available. Established in 1996, Lightrealm is located in Kirkland, Wash., and at www.lightrealm.com.