The Planet Reports Record Fourth Quarter

HOUSTON, Jan. 26, 2009 – The Planet, the global leader in IT hosting, today discussed its results for the quarter ended Dec. 31, 2008.  The Planet provides quarterly updates to its customers, business partners and prospects with information relative to new initiatives and its progress.

“We ended the fourth quarter with solid revenue growth and another record year in 2008,” said Chairman and Chief Executive Officer Douglas J. Erwin.  “Across every unit in the company, we made significant gains.  Within customer service, data center operations, network development, marketing and product management, our metrics indicate extraordinary improvements. Nevertheless, we will continue to focus on every aspect of our company to enhance our performance. Customers have clearly seen and experienced these changes, and they continue to entrust The Planet with their businesses. 

“Despite the challenging economic environment, we are confident that we will again set new standards for our operations and deliver solid revenue growth in 2009.  We’re secured by our new $45 million credit facility, which allows us to deliver on our strategic vision, and customers can be confident in our financial stability.  Our new 86,000 square foot data center, and the enhanced products and services we will offer this year, provide our customers with the power to choose from the broadest range of cost-effective hosting solutions in the industry.”   

“Once again, we had a record year and a record quarter,” said Chief Financial Officer Kevin Klausmeyer.  “Our cash flows remain healthy, and, in fact, were stronger in the fourth quarter than in all prior quarters, despite a difficult economic climate. We reached high-water marks in virtually all of our efficiency metrics, as a result of continued process improvements and investment in our systems. Our EBITDA came in right on plan for the year and the quarter, and our balance sheet is very strong.”

Fourth Quarter Highlights

Strong Customer Activity:  In the fourth quarter, the company added 1,400 customers, bringing the total to 25,500.  The greatest growth came from the company’s current customers, who continued to upgrade and expand their server portfolios.  In addition, the company now hosts more than 14.5 million Web sites.

New $45 Million Credit Facility:  The company secured a $45 million credit facility to fund demand-driven expansion and strategic initiatives.  Wachovia Bank NA led the transaction with $30 million, followed by Bank of America with $15 million.

Dallas-Area Colocation Data Center:  The company announced plans for a new 86,000 square foot data center in the Dallas suburb of Plano, bringing its raised floor footprint to 216,000 square feet.  The new facility will support The Planet’s expanding colocation business, accommodate Northstar Managed Hosting customers, and house its complex infrastructure technologies including private and virtual racks.  Designed with new “green” efficiencies, the company expects the new facility to be operational in May 2009. 

Dallas D6 Expansion:  The Planet announced the opening of the last phase of its Dallas D6 data center, which adds 12,000 square feet to its operations. 

Storage Cloud:  The company announced the limited availability of its new highly scalable and on-demand storage cloud service.  In an industry first, The Planet merges on-premise storage with cloud storage capabilities. Customers gain additional benefits, including free uploads to the local node and a single policy-driven account to manage all file-based storage requirements.

East, West Coast Expansion:  New nodes were added on the East and West Coasts of the United States in Equinix colocation facilities located in San Jose, Calif., and Ashburn, Va.  The changes enhance network performance and latency for customers, in addition to interconnecting directly with international ISPs in these locations.  International customers in particular will experience enhanced network performance from the company’s enterprise-class network.

Network Upgrades:  The company made significant improvements to its highly regarded enterprise-class network.  The upgrades consolidated Houston and Dallas into a single global network, which provides increased reliability, better scalability and a more consistent experience for the company’s more than 25,000 customers.  It also provides capabilities that make the network IPv6-ready.

Bargain Bin:  The Planet launched a new real-time searchable repository that provides overstocked and clearance dedicated servers in a variety of configurations.  The servers are available on a revolving basis, with prices starting at $45 per month.

Northstar Managed Hosting:  The company added the popular Red Hat Enterprise Linux operating system to its managed hosting platform, which now offers support for both Linux and Microsoft. Customers with blended environments can also take advantage of the company’s service.

EdgeCast CDN:   The Planet introduced the EdgeCast Content Delivery Network (CDN), a world-class platform that offers customers cost benefits and flexibility for controlling their own CDNs, while eliminating the expensive capital investments and operational hassles typically associated with the technology. 

Awards:  The company earned several awards during the quarter, including the Deloitte Texas Fast 50, Deloitte North America Fast 500, and the Houston Business Journal FastTech 50 and its Enterprise Champion Award.

About The Planet

The Planet is the leading provider of On Demand IT Infrastructure solutions, hosting more than 25,000 small- and medium-size businesses and 14.5 million Web sites worldwide.  Customers have the power to choose from the broadest range of hosting solutions in the industry, from dedicated servers, Alpha Professional Managed Dedicated Servers, Northstar Managed Hosting and data center colocation, all backed by 24x7x365 support.   With the best choice of servers, software tools and world-class service, backed by state-of-the-art data centers and an enterprise-class network, The Planet turns IT into a powerful competitive advantage that enables customers to grow their businesses. For additional information, visit www.theplanet.com.

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