Hostway and NetNation Merger Completed

Chicago, IL and Vancouver, BC— August 22, 2003—Hostway, a global leader in Web hosting, and NetNation Communications, Inc., a pioneer in Web hosting and domain name registration, announced today that they have completed their merger, forging one of the largest Web services companies in the world.

"Customers, employees, and other stakeholders can expect superior value and easier access to the latest hosting innovations from the combined company," said Lucas Roh, CEO of Hostway.

He added, "We sought out NetNation because of their long standing reputation for providing customers top-notch hosting services. The NetNation staff has outstanding credentials and experience, and shares deep dedication to customers, which makes it a perfect fit with Hostway."

Hostway is expected to leverage NetNation’s Vancouver base to accelerate its expansion into Canada. Staying consistent with its global expansion strategy, Hostway now has offices in US, UK, Netherlands, Australia, Korea, and Canada.

"Hostway is well-regarded as an innovator and a leader in the hosting industry," said David Talmor, former President and Chairman of NetNation Communications, Inc.

"The combined company will have an enviable position of strength and stability," he added.

The combined company services more than 300,000 paying customers. The provided services include domain name registration, shared Web hosting, dedicated server hosting, complex multi-server hosting, high-bandwidth hosting and co-location, making Hostway— truly— the total hosting provider.

NetNation’s stock (Nasdaq: NNCI) ended trading at market close today and delisted from the Nasdaq stock exchange. NetNation also filed a Form 15 with the Securities Exchange Commission, effectively ending its status as a publicly traded, reporting company as of the time of delisting.

Holders of a majority of NetNation’s outstanding shares approved the merger on August 21, 2003. NetNation’s stockholders should expect to receive within the next week to ten days information with instructions on how to exchange their stock certificates for the merger consideration. In return for all of NetNation’s outstanding stock, NetNation’s stockholders will receive approximately US$10 million in cash from Hostway.

NetNation will operate as an independent brand and a wholly owned subsidiary within Hostway’s group of companies.

About NetNation Communications, Inc.

NetNation Communications, Inc. (http://www.netnation.com) is a pioneer in Web hosting and domain name registration. With more than six years in operation, the Company has extended its products to offer enhanced-dedicated servers, co-location, shared hosting and managed services to clients worldwide. NetNation is recognized by industry evaluators for its excellent customer service and support, as reflected by its frequent top Web host rankings worldwide. The Company was recently ranked the fourth fastest growing company in British Columbia by Business in Vancouver magazine, based on percentage revenue growth from 1997 to 2001.

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. NetNation assumes no obligation to update any forward-looking information contained in this news release.

NetNation is a registered trademark of NetNation Communications, Inc. and DomainPeople is a trademark of DomainPeople, Inc. All other products and company names are the trademarks or registered trademarks of their respective owners.