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Host Europe/KPN Germany Data Centre Partnership Deal

HOST EUROPE - KPNQWEST INFRASTRUCTURE PARTNERSHIP IN GERMANY

Host Europe PLC is one of Europe's leading Internet hosting providers to the SME market.

Host Europe has today signed a significant partnership agreement with KPNQwest, a leading pan-European provider of data-centric services.

Host Europe will be moving its current Cologne-based offices and data centre infrastructure into KPNQwest’s EuroRing™ facility in Cologne. The full facility, comprising 4,300 sq ft of data centre space will be leased for an initial term of five years. Host Europe also plans to move its German staff into the building, which will be fully branded as a Host Europe office.

KPNQwest has deployed a high capacity fibre optic network consisting of interconnected EuroRings™ connecting 50 cities. The network is connected directly to Qwest’s fibre infrastructure in North America and Asia, resulting in a seamless fibre network of 180,000 kilometres. Host Europe’s new Cologne facilities will be protected by an exceptionally high specification infrastructure including multiple uninterruptible power supply (UPS) systems, a backup generator, and gas-based fire protection systems.

Host Europe’s German business has grown significantly since the acquisition of One-2-One Advertising and Telecommunications GmbH in March 2001. A full range of dedicated servers has been launched in Germany, and by the end of 2001 the Company had over 800 servers in its German data centre, compared to 100 in March 2001. The German business has also grown from 18 staff to 31 staff in the same period.

Abby Hardoon, Chief Executive Officer, commented:

“Host Europe’s existing facility in Germany is close to reaching full capacity, and we found ourselves facing a decision as to whether to further expand our existing infrastructure, or to explore an alternative solution. Host Europe has been able to reach a very attractive agreement that avoids the necessity for significant capital expenditure in Germany while at the same time allowing us to continue to control our own operations.

We have been very impressed with the standard of the KPNQwest facilities and are confident that they will allow us to provide enhanced levels of customer service, performance and resilience as we continue with our strategy to provide higher-end hosting solutions to SMEs”.

Michael Mueller-Berg, Senior Vice-President and Managing Director for KPNQwest Germany, commented:

"We are delighted to be partnering with Host Europe and helping its impressive journey to become a leader in the European SME hosting market place. By providing Host Europe the use of our state of the art facilities in Cologne, KPNQwest can help ensure that Host Europe’s high levels of service are maintained."


14 March 2002


Enquiries:

Host Europe PLC Tel: +49 20 8896 7500
Abby Hardoon, Chief Executive Officer
Frank Rejwan, Chief Operating Officer

KPNQwest
Piers Schreiber, Corporate Communications
Tel: +31 23 568 7612, e-mail: piers.schreiber@kpnqwest.com

Jerry Yohananov, KPNQwest Investor Relations
Tel: +31 23 568 7602, e-mail: jerry.yohananov@kpnqwest.com


Notes to Editors:

Host Europe PLC will be releasing its preliminary results for the year ended 31 December 2001 on Tuesday 19 March 2002.

Host Europe owns and trades under the following brands:

§ 'Dedicated Servers' (www.dedicated-servers.co.uk) - high-end dedicated servers on multiple platforms, managed services and server co-location;

§ 'Magic Moments' (www.magic-moments.com) - Internet hosting services to the UK's SME market;

§ 'WebFusion' (www.webfusion.co.uk) - Internet hosting services to the UK's SME market;

§ '123-reg' (www.123-reg.co.uk) - low cost domain name and e-mail services;

§ 'Host Europe' - Internet hosting services to the European SME sector (Germany and France); and

§ 'eliteSERVERS' (www.elite-servers.net) - Internet hosting services in the USA.

Host Europe is one of Europe's leading dedicated Internet hosting companies. It provides a comprehensive range of services including shared server hosting, dedicated servers, managed services, server co-location, global domain name registration and a bespoke range of e-services, to SME businesses.

Its hosting solutions are all serviced from its three data centres in the UK and Germany, with multiple connections to the Internet and 24/7 technical support ensuring industry leading levels of reliability and quality of service.

About KPNQwest

KPNQwest (NASDAQ & ASE: KQIP), a leading pan-European data communications company, delivers a full range of carrier and corporate networking solutions, hosting and Internet services across a 15 country European footprint with seamless connectivity to a 180,000km global network. The company owns and operates the EuroRings™, the fastest, most advanced fibre-optic backbone in Europe, which connects 50 cities and a network of ultra-secure hosting facilities, the KPNQwest CyberCentres™. On October 18, 2001, KPNQwest announced its intention to acquire the Ebone and Central Europe divisions from GTS. Subject to the successful closure of this acquisition, KPNQwest will offer a 25,000km fibre-optic network, connecting 60 cities with 14 metro area networks and a total of 55,000m2 of hosting space.

More information is available at the KPNQwest web site at www.kpnqwest.com
HOST EUROPE - KPNQWEST INFRASTRUCTURE PARTNERSHIP IN GERMANY

Host Europe PLC is one of Europe's leading Internet hosting providers to the SME market.

Host Europe has today signed a significant partnership agreement with KPNQwest, a leading pan-European provider of data-centric services.

Host Europe will be moving its current Cologne-based offices and data centre infrastructure into KPNQwest’s EuroRing™ facility in Cologne. The full facility, comprising 4,300 sq ft of data centre space will be leased for an initial term of five years. Host Europe also plans to move its German staff into the building, which will be fully branded as a Host Europe office.

KPNQwest has deployed a high capacity fibre optic network consisting of interconnected EuroRings™ connecting 50 cities. The network is connected directly to Qwest’s fibre infrastructure in North America and Asia, resulting in a seamless fibre network of 180,000 kilometres. Host Europe’s new Cologne facilities will be protected by an exceptionally high specification infrastructure including multiple uninterruptible power supply (UPS) systems, a backup generator, and gas-based fire protection systems.

Host Europe’s German business has grown significantly since the acquisition of One-2-One Advertising and Telecommunications GmbH in March 2001. A full range of dedicated servers has been launched in Germany, and by the end of 2001 the Company had over 800 servers in its German data centre, compared to 100 in March 2001. The German business has also grown from 18 staff to 31 staff in the same period.

Abby Hardoon, Chief Executive Officer, commented:

“Host Europe’s existing facility in Germany is close to reaching full capacity, and we found ourselves facing a decision as to whether to further expand our existing infrastructure, or to explore an alternative solution. Host Europe has been able to reach a very attractive agreement that avoids the necessity for significant capital expenditure in Germany while at the same time allowing us to continue to control our own operations.

We have been very impressed with the standard of the KPNQwest facilities and are confident that they will allow us to provide enhanced levels of customer service, performance and resilience as we continue with our strategy to provide higher-end hosting solutions to SMEs”.

Michael Mueller-Berg, Senior Vice-President and Managing Director for KPNQwest Germany, commented:

"We are delighted to be partnering with Host Europe and helping its impressive journey to become a leader in the European SME hosting market place. By providing Host Europe the use of our state of the art facilities in Cologne, KPNQwest can help ensure that Host Europe’s high levels of service are maintained."


14 March 2002


Enquiries:

Host Europe PLC Tel: +49 20 8896 7500
Abby Hardoon, Chief Executive Officer
Frank Rejwan, Chief Operating Officer

KPNQwest
Piers Schreiber, Corporate Communications
Tel: +31 23 568 7612, e-mail: piers.schreiber@kpnqwest.com

Jerry Yohananov, KPNQwest Investor Relations
Tel: +31 23 568 7602, e-mail: jerry.yohananov@kpnqwest.com


Notes to Editors:

Host Europe PLC will be releasing its preliminary results for the year ended 31 December 2001 on Tuesday 19 March 2002.

Host Europe owns and trades under the following brands:

§ 'Dedicated Servers' (www.dedicated-servers.co.uk) - high-end dedicated servers on multiple platforms, managed services and server co-location;

§ 'Magic Moments' (www.magic-moments.com) - Internet hosting services to the UK's SME market;

§ 'WebFusion' (www.webfusion.co.uk) - Internet hosting services to the UK's SME market;

§ '123-reg' (www.123-reg.co.uk) - low cost domain name and e-mail services;

§ 'Host Europe' - Internet hosting services to the European SME sector (Germany and France); and

§ 'eliteSERVERS' (www.elite-servers.net) - Internet hosting services in the USA.

Host Europe is one of Europe's leading dedicated Internet hosting companies. It provides a comprehensive range of services including shared server hosting, dedicated servers, managed services, server co-location, global domain name registration and a bespoke range of e-services, to SME businesses.

Its hosting solutions are all serviced from its three data centres in the UK and Germany, with multiple connections to the Internet and 24/7 technical support ensuring industry leading levels of reliability and quality of service.

About KPNQwest

KPNQwest (NASDAQ & ASE: KQIP), a leading pan-European data communications company, delivers a full range of carrier and corporate networking solutions, hosting and Internet services across a 15 country European footprint with seamless connectivity to a 180,000km global network. The company owns and operates the EuroRings™, the fastest, most advanced fibre-optic backbone in Europe, which connects 50 cities and a network of ultra-secure hosting facilities, the KPNQwest CyberCentres™. On October 18, 2001, KPNQwest announced its intention to acquire the Ebone and Central Europe divisions from GTS. Subject to the successful closure of this acquisition, KPNQwest will offer a 25,000km fibre-optic network, connecting 60 cities with 14 metro area networks and a total of 55,000m2 of hosting space.

More information is available at the KPNQwest web site at www.kpnqwest.com



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