Hostopia introduces advanced website templates to hosting industry

TORONTO, and FORT LAUDERDALE, FL - Today Hostopia announced its initial licensing of website templates to the service provider market, focusing on large hosting providers with strong reseller networks. Hostgator, one of North America's leading hosting providers with a commanding share of the reseller market, has licensed Hostopia's full inventory of professionally developed site templates for distribution to its customer base.

"Demand for pre-built websites is surging as small businesses and professional website designers seek to create superior business websites with less effort," comments Paul D. Engels, Hostopia's chief marketing officer. "Hosting providers can fill this demand, but only if they source a reliable supply of compelling templates with attractive licensing terms. Hostopia meets this need," he added.

The website templates licensed by Hostopia are based on industry standard protocols to be fully compatible with leading development tools such as Namo WebEditor 2006 Suite, Adobe(R) Photoshop(R)6+, Macromedia Flash MX+, Macromedia Dreamweaver MX 2004, FrontPage 2003+, or any other HTML editor. File formats supported include PSD, HTML, SWF and FLA as well as non-flash versions.

Hostgator CEO, Brent Oxley noted, "Hosting resellers are dominated by the developer community who need high quality templates. Few, if any, licensable sources of high-quality templates exist in the market other than Hostopia's. Our in-depth research and testing of their site designs confirm they are the best choice for our needs."

Hostopia and Hostgator declined to reveal specific terms of their agreement. They stated that over 2,500 templates are included under a fully-paid licence with an option to add additional site templates plus OS Commerce designs. Mr. Oxley indicated that Hostgator's marketing plans for the templates are in progress and Hostgator clients can expect to see them within 90 days.

Hostopia's template collection can be viewed at www.templatedemo.com. Hostopia will be offering other licensable properties such as OS Commerce templates and 30,000 web-ready images in the near future.

About Hostopia

Hostopia provides wholesale private-label hosting, managed email, and application services to telcos, ISPs, cable companies, hosting providers, anddomain registrars.

Hostopia's automated provisioning and support systems enable service providers to increase their profits, offer superior features to their end-users, and reduce the risks and challenges of delivering reliable, high-performance web services including; small-business hosting and applications, business-class email, and consumer email.

About Hostgator

Hostgator is a privately-owned company with locations in Boca Raton and Houston. Founded in 2002, Hostgator has no debt, is very profitable, and is fully committed to serving its customers for the long term. Providing service to over 400,000 websites on its shared and reseller plans, Hostgator, with over 10,000 accounts, is the world's leading provider to resellers who offer network, servers and support required to launch a hosting business.

Forward-Looking Information
This press release includes certain "forward-looking statements" and forward-looking information that are subject to risks, uncertainties and other factors that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements. These forward-looking statements and forward-looking information include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" or words of similar meaning. Our actual results could differ materially from those anticipated in these forward-looking statements and forward-looking information upon completion of the review of our third quarter results by our independent registered public accounting firm. These statements are based on our current beliefs or expectations and there are a number of important factors that could cause the actual results or outcomes to differ materially from those indicated by these forward-looking statements, including without limitation, our ability to maintain our sales efficiency,
our ability to maintain our existing, and develop new, strategic relationships, the number of our net subscriber additions, our monthly customer turnover and our ability to successfully integrate recently acquired businesses and operations and those risks set forth under the caption "Risk Factors" in Hostopia's Quarterly Report on Form 10-Q for the year quarter ended September 30, 2006, as filed with the Securities and Exchange Commission. These filings are available on a Website maintained by the Securities and Exchange Commission at www.sec.gov. Hostopia does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.