Web Hosting Firms, Alabanza and Jupiter Hosting, Acquired by NaviSite

Andover, Massachusetts - (The Hosting News) - August 20, 2007 - Application solutions, hosting, infrastructure and content delivery services firm, NaviSite, has acquired privately-held hosting services providers, Alabanza and Jupiter Hosting, which were sold for cash consideration of approximately $15.5 million.

Arthur Becker, Chief Executive Officer of NaviSite offered, ''Alabanza and Jupiter fit neatly into our managed hosting offerings and were acquired at less than four times expected synergistic EBITDA. These transactions add new customers with average revenue per square foot densities of approximately $4,700 per year and create significant opportunities to up-sell and cross-sell our entire suite of managed services.''

Baltimore, MD based Alabanza offers a comprehensive suite of dedicated and shared web hosting services, as well as a highly automated proprietary software platform for provisioning and managing high volume hosting solutions. Santa Clara, CA based Jupiter Hosting offers dedicated and complex managed hosting and infrastructure services that include high quality and high bandwidth applications such as IPTV, Video on Demand and Progressive Video Delivery; the company also has a data center located in Santa Clara, CA.

The acquisitions were financed predominately through cash on hand. The acquisitions are expected to be accretive to adjusted EBITDA immediately and fully integrated by NaviSite's second quarter. The company plans to update fiscal 2008 guidance for these acquisitions in its next quarterly earnings call tentatively scheduled for the end of September, 2007.

Baltimore, MD based Alabanza's automated web hosting solutions, backed by its Domain System Manager (DSM) software, are used by web hosting companies, web developers, systems integrators, Internet service providers, and telecommunication carriers. Alabanza's proprietary software platform is a business management tool that guides and automates the core tasks required for running a hosting company, including DNS registration, web site provisioning and building, store front creation and customer billing. Nearly 165,000 active web sites in more than 25 countries are powered by Alabanza.

Santa Clara, CA based Jupiter Hosting specializes in managed hosting for companies with high traffic volumes or complex hosting requirements. Working within the OSI seven-layer model, it provides simple dedicated and complex managed web hosting and web infrastructures for over 10,000 Internet properties. Jupiter Hosting has emerged as an industry leader in providing support for high-bandwidth applications such as IPTV, Video-on-Demand, and Progressive Download of Video content over the Internet. Other areas of specialization include IP bandwidth provisioning, server clustering, and application or database installation.

NaviSite is a provider of application solutions, hosting and content delivery services for the mid market. With over 950 customers in 14 data centers; offices in the US, UK and India; NaviSite is the partner of choice for outsourcing enterprise applications and related technology services to drive IT Efficiency and Effectiveness. NaviSite delivers application implementation and management, hosting and content delivery services and is the industry's only single source provider of complex application and IT services for mid sized companies.

For more information Alabanza, please visit: www.alabanza.com.

To learn more about Jupiter Hosting, please visit: www.jupiterhosting.com.

For more information about NaviSite, please visit www.navisite.com.

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