Host Europe has today signed a significant partnership agreement with KPNQwest, a leading pan-European provider of data-centric services. Host Europe will be moving its current Cologne-based offices and data centre infrastructure into KPNQwest's EuroRing™ facility in Cologne. The full facility, comprising 4,300 sq ft of data centre space will be leased for an initial term of five years. Host Europe also plans to move its German staff into the building, which will be fully branded as a Host Europe office.

KPNQwest has deployed a high capacity fibre optic network consisting of interconnected EuroRings™ connecting 50 cities. The network is connected directly to Qwest's fibre infrastructure in North America and Asia, resulting in a seamless fibre network of 180,000 kilometres. Host Europe's new Cologne facilities will be protected by an exceptionally high specification infrastructure including multiple uninterruptible power supply (UPS) systems, a backup generator, and gas-based fire protection systems.

Host Europe's German business has grown significantly since the acquisition of One-2-One Advertising and Telecommunications GmbH in March 2001. A full range of dedicated servers has been launched in Germany, and by the end of 2001 the Company had over 800 servers in its German data centre, compared to 100 in March 2001. The German business has also grown from 18 staff to 31 staff in the same period.

Abby Hardoon, Chief Executive Officer, commented:

"Host Europe's existing facility in Germany is close to reaching full capacity, and we found ourselves facing a decision as to whether to further expand our existing infrastructure, or to explore an alternative solution. Host Europe has been able to reach a very attractive agreement that avoids the necessity for significant capital expenditure in Germany while at the same time allowing us to continue to control our own operations.

We have been very impressed with the standard of the KPNQwest facilities and are confident that they will allow us to provide enhanced levels of customer service, performance and resilience as we continue with our strategy to provide higher-end hosting solutions to SMEs".

Michael Mueller-Berg, Senior Vice-President and Managing Director for KPNQwest Germany, commented:

"We are delighted to be partnering with Host Europe and helping its impressive journey to become a leader in the European SME hosting market place. By providing Host Europe the use of our state of the art facilities in Cologne, KPNQwest can help ensure that Host Europe's high levels of service are maintained."