Fusepoint reports record year; secures additional US$9 million in financing

January 17, 2006; 07:38 AM

TORONTO, ON - January 17, 2006 - Fusepoint Managed Services, a leading provider of outsourced IT services and infrastructure, today announced that it has secured an additional US$9 million in growth financing from new investor Western Technology Investment (WTI) of San Jose, CA. The funding will be used to further drive Fusepoint's aggressive growth strategy involving operations expansion and potential acquisitions throughout 2006.

"Fusepoint recorded another tremendous year, achieving revenue growth in excess of 100 per cent," said David MacGrandle, CFO of Fusepoint Managed Services. "We now welcome WTI as a key partner and contributor to Fusepoint as we continue to build upon our IT leadership stance in 2006 with many of Canada's most successful organizations."  

WTI's commitment to Fusepoint follows a record year that included the addition of 115 new customers and builds on its continued history of increasing profit.

"Fusepoint's leading position in IT infrastructure and application management, coupled with its strong and growing customer base, positions the company as a valuable partner to mid-market and large enterprise operations," said Ron Swenson, Founding Partner, Western Technology Investment. "We look forward to fostering a strong and successful partnership with Fusepoint as it continues to build its services portfolio, develop its expertise and expand its leadership team in the lucrative managed services marketplace."

"Both M/C Venture Partners and now WTI play an active role in helping us achieve considerable success as organizations continue to outsource their IT infrastructure management to Fusepoint," said George Kerns, President and CEO of Fusepoint. "Companies are facing a number of business challenges around compliance and legislation, disaster recovery planning, and their overall ability to maintain the integrity and availability of their mission-critical applications. Fusepoint's comprehensive range of security and business continuity services gives customers the peace of mind that comes with knowing their IT infrastructure is always available and always secure."

About Western Technology Investment
WTI is the largest independent venture lending organization in the United States. It was founded in 1980 to assist new and emerging venture capital backed companies. Over the past 25 years, Western Technology Investment's team has originated more than $2 billion dollars in transactions with more than 600 companies. WTI specializes in financing for venture capital funded technology companies who are in their aggressive growth stage. WTI has invested in rapidly-growing companies such as Fusepoint Managed Services. For more information, please visit www.westerntech.com.
About Fusepoint Managed Services

Fusepoint Managed Services is the leading provider of managed IT services and infrastructure for companies running mission-critical business applications. Fusepoint's technical experts and world-class data centres ensure the continuity of our clients' businesses. We protect their networks, data and applications against unforeseen disasters and malicious threats while reducing their operational costs and safeguarding their corporate reputation.

Fusepoint's on-demand services include managed hosting, managed application services, business continuity, security and professional consulting services.

Built on a foundation of unrivaled technical expertise and proven operational processes, Fusepoint's managed IT solutions are SLA-guaranteed, scalable and designed to reduce IT cost structures while mitigating risk of service disruption. Picked as a "company to watch" by IDC Canada, Fusepoint maintains a national network of state-of-the-art data centres and offices strategically located in Toronto, Vancouver, Calgary, Montreal and Quebec City. For more information, please visit www.fusepoint.com.