Nupremis Acquires InterWare

Nupremis, a new corporation formed to expand the delivery of broadband applications and next-generation online services, announced the acquisition of Budapest, Hungary-based InterWare, Kft. Established in 1997, InterWare is a tier one ISP providing IP backbone network services. Headquartered in Boulder, Colorado, Nupremis is deploying a global network of high-performance Internet Data Centers that provide Internet applications delivery platforms to customers through co-marketing agreements with broadband access carriers.

InterWare will now serve as a high speed, advanced Internet Applications Service Provider (ASP) that delivers e-commerce applications-on-demand for businesses and consumers throughout Hungary.

Nupremis is working to enhance InterWare's ISP with a state-of-the-art Internet Data Centers (IDC). The IDC will house advanced applications and ISP functionality previously unavailable in Europe. InterWare will deploy COMPAQ's fault tolerant Zero Latency technology, the most sophisticated and reliable data management platform available for the Internet. The acquisition will position InterWare among the most advanced applications management infrastructures in the world for business services.

Chuck Cadle, Chief Executive Officer of Nupremis, said: "It is time to bring the customer's broadband expectations and their online experiences into alignment. Our new premise is to deliver managed applications and rich media content at the edge of local high-speed access networks. By hosting, integrating and managing e-Business applications, we enable carriers and their consumers to benefit from the true power of broadband."

Cadle continued, "InterWare has the management team and vision to help us launch our Pan-European application data centers. Nupremis is building high performance data center platforms in other key markets in Europe. InterWare will serve as a showcase for our customers and will provide the critical management talent necessary to meet our business objectives."

Robert Pamer, Chief Executive Officer of InterWare, said: "We are thrilled about the acquisition. InterWare has led the market and manages the highest traffic Web server environment in Hungary. The acquisition allows us to make a quantum upgrade in our technology platform and to produce huge additional benefits for our customers."

The improvements InterWare is introducing include:

• Becoming the first ISP in Hungary to own a 1.0 GB/s connection to the Hungarian Internet Exchange (BIX), a ten-fold increase of current capacity.
• Increasing international bandwidth to 6 MB/s, providing the fastest global Internet connectivity available in the Hungarian market.
• Expanding the InterWare national network to reach 80 percent of Hungary's Internet users by mid-summer 2000.
• Growing the number of smaller ISP clients seeking to utilize InterWare shared network resources. InterWare currently serves eight ISPs on its network today.

Mr. Pamer added: "InterWare can now bring home the highest global standards for high speed Internet access and a full suite of next-generation business applications native to the broadband Internet environment."

About Nupremis

Nupremis revolutionizes the broadband access business model by delivering real-time applications and shared outsource services though a global network of high-performance Internet data centers.

Nupremis, through its global network of high performance Internet Data Centers, will be the first global company to enable broadband local carriers -- cable operators, wireless service providers, and satellite system providers -- to offer business applications and broadband content services on an outsource basis. Carriers will now have access to new revenues streams from Internet applications while retaining traditional customer relationships. Nupremis will transform the broadband access business model for carriers, ASPs and netcentric businesses by delivering real-time applications and shared outsource services.

Nupremis received initial funding of $25 million from a consortium of investors including the Edward P. Bass Group, Angelo, Gordon & Co, and Investcorp, and its strategic alliance partners Compaq Computer Corporation and Callahan Associates International, the global communications development and operating company, which created the business concept for Nupremis. The company used the investment to complete three targeted acquisitions, also announced recently. Subsequent to the acquisitions, Nupremis was valued at $71 million. At the time of launch, the corporation has over 100 employees and annualized revenues of $12 million. Nupremis currently has Tier 1 Internet Data Center operations in the United States and Europe and will launch at least six additional facilities in calendar year 2000. These facilities target major commercial centers in Europe including Germany, France, the United Kingdom and Hungary, and in Asia, in Japan, Singapore and Hong Kong. Visit Nupremis at www.nupremis.com.