Market Mover Hostway Wins Frost & Sullivan Customer Value Enhancement Award

Web-Hosting Leader Honored for Innovation In Growing Business Through Focus on Customers

Chicago, IL—July 14, 2004—Characterized as "a strong and rising star in the hosting market and one to watch in the years to come," web hosting leader Hostway Corporation today accepted the 2004 Customer Value Enhancement Award from global technology research firm Frost & Sullivan. The award honors Hostway for expanding its customer base and maintaining its existing business through innovative customer-care strategies.

Frost & Sullivan annually bestows its Customer Value Enhancement Awards upon companies in a variety of technology industries.

"Over the past two years Hostway has continued to expand successfully beyond U.S. borders into international markets without losing focus on the importance of high quality service and customer retention," said Frost & Sullivan Analyst Jarad Carleton. "Hostway's efforts to make Web hosting easy and affordable for the SME market have paid off with some of the lowest churn rates in the industry, but company management has not used that as an excuse to rest on its laurels."

Carleton noted that Hostway has remained focused on the Web hosting needs of small businesses that usually are not as tech savvy as medium and large organizations. This has led to the development of special instructional tools for publishing web pages, getting domain names, setting up email, and a variety of web seminars on topics such as how to effectively market a web site and make the best use of a web presence. In addition, Hostway has recently launched U.S.E.R support, an exciting new customer support initiative that will further enhance customer's experience. U.S.E.R support promises to provide customers with Universal, Simple, Easy and Reliable phone and email support 24/7.

"We are delighted to accept this award from Frost & Sullivan, because it recognizes the importance we always have attached to putting the needs of our customers first and foremost," said John Lee, Hostway's Vice President of Marketing. "Our success has attracted many competitors who try to match our formula, but we continue to find new ways to raise the bar and increase value for established and new customers."

Roh said Hostway continues to pay particular attention to training its tech support staff, adding new capabilities and ease-of-use features to its Hostway-built CRM system, focusing on fast response times to customer inquiries, improving its troubleshooting processes and adding value to its online help center. He said these ongoing efforts have resulted in strong customer satisfaction and loyalty.

About Frost & Sullivan

Frost & Sullivan, a global growth consulting company, has been supporting clients' expansion for more than four decades. Its market expertise covers a broad spectrum of industries, while its portfolio of advisory competencies include custom strategic consulting, market intelligence and management training. Frost & Sullivan's mission is to forge partnerships with its clients' management teams, to deliver market insights, and to create value and drive growth through innovative approaches.  Frost & Sullivan's network of consultants, industry experts, corporate trainers and support staff, spans the globe with offices in every major country.