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Leading communications services provider launches business hosting services.

Fort Lauderdale, USA, November 9, 2004 - TelCove, a leading provider ofbusiness critical telecommunications services to enterprise customers andcarriers, has selected Hostopia to provide fully managed, private label webhosting and email services to its small business customers. An agreementsigned between the organizations followed extensive due diligence by TelCovein a competitive vendor selection process.

“We are delighted to gain TelCove as a private label partner,” says FrancNemanic, president of Hostopia. “They are a leading provider of businesscommunications services with exceptional market coverage in the EasternUnited States. We expect them to be a powerful source of revenue from theregion.”

Honoring the non-disclosure terms of its business agreements, Hostopia isunable to state the exact dollar value of the agreement. It can report thatTelCove’s size and market leadership can add thousands of small businesshosted websites and tens of thousands of business email accounts to Hostopia’s managed network. As part of the agreement, TelCove migrated its existinghosted sites to Hostopia.

Craig Drinkhall, senior vice-president, product development & engineeringsays, “We chose Hostopia to deliver our business hosting and email for tworeasons: they have the latest product features to drive our growth andreduce customer churn, and their expertise in operating the platformoffloads valuable resources we’d prefer to deploy elsewhere. It’s a superiorbusiness model that allows us to succeed in hosting while focusing attentionon our core business.”

Owing to Hostopia’s highly customizable private label formula, TelCove’scustomers experience the service seamlessly within the TelCove and customerfacing, branded environment. Hostopia is completely invisible as themanagement of the back end. End user technical support is provided byTelCove, assisted by Hostopia’s turnkey suite of customer query tools anddiagnostic applications.

Drinkhall continues, “Our hosting business plans are more ambitious withHostopia’s help. We have already launched highly effective spam and virusfiltration for our business email users and we will be rolling out numerousother value added features from Hostopia such as e-commerce storeapplications, all with our branding and support, of course. Our customersare delighted and the business model is very healthy.”

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