1&1 Offers PayPal for its eShop Web Hosting Clients

PHILADELPHIA, March 9, 2005 - 1&1 Internet, Inc. - the world's largest Web hosting company - has announced that its eShop Web Hosting packages will now offer PayPal as a preferred payment method.   

According to 1&1, the Web Host will designate PayPal as the default payment mode in each of its eShop products, giving it top billing in the eShop's drop-down menus for payment methods. In addition, PayPal will implement an email campaign to select merchants offering nine months of free Web Hosting from 1&1.

"This arrangement brings together two major Internet entities with great reputations for always finding ways to increase the value of their services," said Andreas Gauger, 1&1 Chairman of the Board. "Offering feature-rich products at affordable prices has been a hallmark at 1&1 for almost 13 years, and one of the main ways we've consistently accomplished this is by establishing relationships with some of the industry's biggest and most reputable names, like PayPal."

"PayPal is committed to providing a secure, easy and cost effective payment option for businesses," said Stephanie Tilenius, vice president of merchant services for PayPal.  "Working with 1&1, we're making it even easier for businesses to integrate online payments onto their Web sites and truly harness the power of the Internet to grow their bottom lines."

PayPal enables any individual or business with an e-mail address to securely, easily and quickly send and receive payments online.  PayPal's service builds on the existing financial infrastructure of bank accounts and credit cards.

1&1 eShops offer simplified e-commerce, with easy-to-use 1&1 Wizards and professionally designed templates for an instant start to online commerce. As business needs increase and expand, users can easily upgrade with advanced customization power.

For more information about 1&1's eShops, visit www.1and1.com.

About 1&1 Internet

1&1 Internet Inc. is a subsidiary of United Internet, a profitable public company with 4,400 employees and a market cap of $1 billion. 1&1 was established in 1992 and has registered 5 million domain names, while 27,000 servers run on the company's four state-of-the-art data centers. 1&1's global community is over 3.5 million customer contracts strong. The company's U.S. headquarters is located in Chesterbrook, PA. For more information, please contact the company at www.1and1.com or 1-877-461-2631.

1&1 Internet Inc. is a subsidiary of United Internet.  All other logos, company and product names may be trademarks or registered trademarks of their respective owners.