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NetNation Acquires Ontario Web Hosting Business

Vancouver, BC  January 7, 2004 - NetNation Communications Inc., Canada's leading Web hosting company, today said it has solidified its number-one status in the Canadian hosting market by acquiring the customer base of Cephren Hosting, a division of Cephren Communications, Brampton, ON.

As a result of the agreement, Cephren exits the hosting business and transfers its hosting customers to NetNation, which serves the former Cephren customers from its Vancouver data center. NetNation is a wholly-owned subsidiary of Hostway Corp., Chicago, a global leader in Web hosting and other managed Internet services. Both Hostway and Cephren are privately held companies. Financial terms of the agreement were not disclosed.

"We're pleased to have the opportunity to serve Cephren's customers. They'll find NetNation easy to work with and attentive to their needs," said Jag Gillan, general manager of NetNation. "Cephren's customers and all others who choose NetNation will enjoy the high level of service and support that have helped make NetNation Canada's leader in Web hosting."

The acquisition immediately enables all Cephren customers to use any of NetNation's and Hostway's services, including shared and dedicated Web hosting and various other managed Internet services. Cephren customers also will benefit from the global network of hosting centers that Hostway operates around the world.

Cephren said the transaction enables the company to focus on its core business of construction. Cephren is a leading builder of technology data centers and office complexes in Canada.

About NetNation
NetNation Communications Inc. is Canada's top-ranked Web host and domain registrar with more than six years experience in the industry, offering a wide range of Web site hosting solutions, dedicated servers and managed services. As a leading Web host, NetNation's goal is to provide innovative solutions that satisfy the evolving needs of organizations and individuals. Through a combination of state-of-the art facilities and the industry's best customer service and support, NetNation delivers successful e-business solutions, bringing innovation, creativity and a caring attitude to all of its customers' business needs.

About Hostway
Hostway Corporation provides Web hosting and managed technology services to more than 300,000 customers worldwide. Hostway helps individuals, small businesses and large enterprises achieve more value from state-of-the-art Web based technologies by reducing their complexity and cost. Founded in 1998, Hostway is one of the five largest Web hosting companies in the world with offices in the Americas (Chicago, Tampa and Vancouver), Europe (London and Amsterdam) and Asia (Seoul and Sydney). For more information about Hostway Corporation, please visit or call 1.888.290.5170.

NetNation Communications
Crystal Chiang
1.604.688.8946 ext. 127

Hostway Corp.
Mina Arsala,

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