C I Host Shows 45% Revenue Increase First Quarters 2004 Over 2003

FORT WORTH, -- May 26, 2004 -- C I Host, a global leader in Web hosting and Internet infrastructure, enjoyed a robust 45 per cent growth in revenue in the first quarter of 2004 compared to the same time period in 2003.

In addition, the number of new customers surged to more than 11,000 in the first quarter of the year and the churn rate fell to 3 percent, the lowest ever for C I Host and one of the lowest in the industry.

The company is on track to beat those numbers in the second quarter. C I Host’s 45 percent growth is significantly higher than one key measure of growth in the industry as a whole – online retail sales – which also showed strong growth, increasing 28 percent in Q1 2004 over Q1 2003, according to U.S. Department of Commerce figures released this month.

“We have hired 20 new staff members since the beginning of the year due to our growth and have taken on three high profile customers,” said Christopher Faulkner, CEO of C I Host. “We are happy to welcome Memorex, Wing Stop and Dixie Chopper to the C I Host family.”

C I Host has also promoted the following senior management employees:

* Tamra Freedman to Director, Business Development & Customer Relationships
* Allan Brand to Director of Operations
* Jessica Baldwin to Director of Internal Systems
* Lee Knuth to Senior Vice President, Retail/VAR Division

C I Host recently launched a multi-million dollar advertising and promotion campaign for “”Customers Rule,” a customer service initiative that ties together several of C I Host’s current programs, including its customer loyalty program - “It’s Nice to Know You’re Appreciated;” its new “ServerProtect” Life Cycle program, its pro-active customer callbacks and its on-going customer surveys.

To develop “Customers Rule,” C I Host examined every customer contact point and devised ways to reach out at crucial times. The customer service department was revamped and renamed to “Quality Assurance” to better reflect their daily duties in relation to providing top quality customer experiences.

“Every contact made throughout the entire lifecycle of a customer’s relationship with C I Host, will be made with the utmost professionalism, accuracy and thoroughness,” Faulkner said. “Our quality assurance staff members make pro-active call backs to customers, survey our long-term customers for ideas on service, and drill down into our company to find root causes of recurring issues.”

And, in a “lemons into lemonade” success, C I Host – like other Web hosts everywhere – had to deal with downtime due to the recent attack of the Witty Worm. But due to C I Host’s proactive approach and its tested disaster recovery manual, few of its customers were inconvenienced. Recovery was rapid and less than one half of one percent cancelled due to downtime caused by the Witty worm.

About C I Host

C I Host (www.cihost.com), based in the Dallas/Fort Worth market, is a Web hosting and Internet solutions provider, domain name registrar (DNR) and application service provider (ASP) serving 210,000 individual consumers and businesses in 182 countries worldwide.

C I Host creates business-class Web hosting solutions for the small- and medium-enterprise (SME) market, with the broadest portfolio of managed hosting and value-added services in the industry. C I Host is accredited by ICANN to register domain names.

C I Host is HIPAA-compliant and has passed the SAS70 audit.

C I Host has been ranked #1 in speed by the Adoloma Web Hosting Guide. C I Host has been consistently ranked among the Top 5 Web hosting companies out of 16,000 around the globe by c|net's Ultimate Web Host List, HostPulse, WebHostsOnline.com and HostChart.com. C I Host was named among the Top 25 Web hosting companies by HostIndex.com.

C I Host offers turn-key services ranging from initial domain name registration to custom dedicated servers for e-commerce on today's Web. The company offers innovative packages and services to the Internet community.

C I Host operates three diverse data centers across the United States, with its main facility and Network Operations Center in Bedford, Texas. C I Host also has offices in Los Angeles, Chicago and London.

All telco-grade, tier-1 data centers are wholly owned and operated by C I Host and consist of redundant diesel generator backups and a temperature-controlled secure environment with fully redundant UPS capability. All server hardware is fully tested and configured for optimal performance. Daily Web server backups and full fire protection guard against any data loss. To deliver speed and reliability, C I Host's servers are connected to two OC-12 fiber connections, five DS-3 and two OC-3 lines from five diverse Internet backbones for a total of more than 2.6 Gigabits of available bandwidth.