USi Acquires Management Consultancy Strong3, Inc.

ANNAPOLIS, Md., May 20 -- USi, the leading enterprise Application Service Provider, today announced the acquisition of Strong3, Inc., an Enterprise Spend Management (ESM) consultancy. Highly regarded for their ESM supply management, technology, and outsourcing practice, the acquisition of Strong3 further expands the scope of USi's ESM services. USi is already the industry's largest provider of outsourced hosting and management of Ariba-based applications. The acquisition reinforces USi's growing commitment to the ESM market.

"Increasingly companies are looking beyond simple automation and toward managing their spend for strategic advantage," said Jeff Esposito, General Manager, ESM and CRM Services at USi. "USi has helped numerous enterprises benefit from improved efficiencies at a lower cost of ownership. With Strong3's proven expertise, we'll be able to further enhance our ESM services to help our clients drive down costs, eliminate unnecessary expense, optimize processes to enhance operational flows, and develop long-term strategies and practices to drive profit."

USi's comprehensive services for the ESM market include the design and management of sourcing events, development and implementation of customized forms and processes, catalog management and integration and user training. As a result, USi helps significantly reduce its clients' operational costs while ensuring wider adoption and use of these applications to generate even greater savings with enhanced accountability. In addition to the outsourced hosting and management of Ariba-based applications, USi also provides complementary financial management, ERP, and eBusiness solutions that address the spectrum of an enterprise's functional needs in a hosting model.

"Working closely with USi to support several clients' requirements, it's clear that USi not only delivers superior application functionality in a managed and secure environment, but commits to keeping that functionality in alignment with clients' ever-changing business needs," said Stephen Rhee, Co- founder and Managing Partner, Strong3, Inc. "Strong3 shares this same commitment to its clients' success; and we're excited to become a part of the USi team."

USi will retain Strong3's current operations in Chicago, IL as a regional sales and client service facility. Terms and conditions of the asset purchase transaction, which closed May 19, 2004, were not released.

About USi

USi delivers enterprise and e-commerce software as a service. The company's portfolio of service offerings delivers the functionality of leading software from Ariba, BroadVision, Lawson, Microsoft, Oracle, PeopleSoft, and Siebel as a continuously supported, flat-rate monthly service via an advanced, secure global data center network. Additionally, USi's AppHost managed application hosting services provide the most advanced solutions for enterprises, software companies, marketplaces, public sector clients and system integrators that are seeking a better way to deliver solutions over the internet to their customers and end users. For more information, visit http://www.usi.com.

"USi" and the block logo "USi" are the registered trademarks of and the same entity as USinternetworking, Inc.

AppHost and Making Software Simple are trademarks of USinternetworking, Inc. All other trademarks are the property of their respective owners.