The Planet Reports Record First Quarter

HOUSTON – The Planet, the world’s largest privately held dedicated hosting company, today announced results for the first quarter ended March 30, 2007.  This is the first such announcement since the company’s January relaunch under its new corporate moniker.  The Planet plans to issue quarterly updates to provide its customers, business partners and prospects with information to validate its progress.

“The Planet posted another record revenue quarter, continuing its inception-to-date string of sequential record quarters,” said Chief Financial Officer Kevin Klausmeyer.  “Gross margins also reached a new record level as a result of synergies, increased purchasing power and the leverage within the operating model.  EBITDA was strong, coming in at 30 percent.  Based on our performance, we expect to grow approximately 20 percent this year, roughly one-third faster than the overall market.”

“We continue to make significant progress in shaping our newly integrated company, and the results are evidence of our success,” said Chairman and CEO Douglas J. Erwin.  “Delivering a world-class customer experience remains our top priority, and we are investing in virtually every area of the company to deliver on that goal.

“The quality, reliability and scalability of our data centers deliver extraordinary value to our customers. We will continue to leverage our size and scale to enhance the products and services required to meet the demands of our growing multi-national customer base,” Erwin concluded.

First Quarter Highlights

New Customers, Record Transactions:  More than 1,600 new customers leased servers in the company’s world-class data centers.  The company also signed the two largest transactions in its history, adding Site5 and expanding its relationship with HostGator.

New Web Site:  With enhanced navigation that incorporates the best features from the merged companies’ previous iterations, the new Web site makes it easier for customers to access its comprehensive portfolio of products and services.

New Products:  The company added enterprise-class security and performance for private rack customers with Cisco ASA 5500 Series firewalls and Foundry ServerIronXL load balancers.  The server portfolio expanded to include Dell’s Clovertown quad-core PowerEdge servers that provide 1.2 Terabytes of storage.

Network Upgrade:  Accelerating network performance, the company added Foundry’s NetIron XMR to deliver enhanced performance, high 10-Gigabit port density and support for IPV6 and MPLS to enable future advanced IP services for customers. 

Call Center Investments:  The company announced a $5 million investment in a new customer contact center and expanded operating facilities designed to enhance customer satisfaction.  The expansion includes its first CRM system, a broad range of new servers, additional software, communications tools and an expanded team of trained support representatives.

Data Center Expansions:  The Planet expanded its data centers in Houston and Dallas, adding 25,000 square feet to meet the demands of its growing customer base.

Executive Appointments:  In its customer-facing organization, the company appointed James P. Treuting as vice president, global sales and managed services.  James P. Picone joined the company as vice president, customer contact centers.

About The Planet

The Planet is the leading provider of On Demand IT Infrastructure solutions, hosting more than 22,000 small- and medium-size businesses and 2.8 million Web sites worldwide.  By offering the best choice of servers, software tools and world-class support, backed by state-of-the-art facilities and unmatched network connectivity, The Planet helps turn information technology into a powerful competitive advantage that enables customers to successfully grow their businesses.  For additional information, visit www.theplanet.com.