Hosting.com Raises $2 Million to Expand Colocation Services and Offerings

CapitalSouth Partners, LLC Invests $2Million in Hosting.com During Initial Round of Funding to Expand Hosting.com's Enterprise Colocation Business Throughout the United States

Hosting.com, the first name in global hosting solutions and services, today announced it has completed a $2 million round of funding with CapitalSouth Partners, LLC. Hosting.com will utilize the CapitalSouth funding to continue to expand its Enterprise Colocation business, which enables enterprises to deploy custom-built micro-data centers of 2,000 - 20,000 square feet inside one of Hosting.com's five SAS 70 certified data centers.

CapitalSouth, headquartered in Charlotte, NC, also operates an office in Louisville, KY, site of Hosting.com's corporate offices. After years of watching the rapid growth and expansion of Hosting.com, CapitalSouth executives partnered with Hosting.com to increase the number of data centers Hosting.com operates.

"Hosting.com's growth in the colocation space over the last two years has been exceptional. CapitalSouth invests significantly in companies that have strong competitive advantages and proven management teams, and Hosting.com fits both criteria," stated Kenneth S. Berryman, Director of CapitalSouth - Louisville. "We are excited to be a part of their growth!"

The city of Louisville has worked closely with CapitalSouth over the past two years to encourage local mezzanine investments in Louisville-based companies. Louisville, KY Mayor Jerry Abramson stated, "We are very pleased that our 2-year effort to attract a top mezzanine debt firm to Louisville played a role in making this exciting expansion by Hosting.com possible."

Since 2006, Hosting.com's expansion has included data centers in Irvine, CA, San Francisco, CA, and Louisville, KY. During that time, Hosting.com has continued to operate its other data centers in Boston, MA and Louisville, KY.

"With today's economy, businesses continue to outsource their IT infrastructure to save money and focus on their core competencies. Hosting.com's colocation, managed hosting, and cloud computing solutions have never been in higher demand," said Darren G. King, CEO of Hosting.com. "We are thrilled to have a great capital partner like CapitalSouth to fund up to $15 Million of our data center expansion initiatives into key markets such as Silicon Valley, Northern Virginia, and Boston."

Hosting.com cites the recent downturn in the economy as a reason to continue expansion and growth into new markets at this time. "We are receiving more calls from enterprises looking to save capital and improve their operational efficiencies by avoiding data center builds and turning to experienced providers such as Hosting.com for increased services," commented Jonathan Erwin, VP of Sales and Marketing at Hosting.com.

Berryman added, "Hosting.com is growing tremendously on an annual basis, and the economic downturn should fuel their continued success. Even in today's tough credit market, successful private equity investors are eager to put their money to work in great companies like Hosting.com."

About Hosting.com

Hosting.com provides enterprise colocation, cloud computing, dedicated hosting, managed hosting, disaster recovery and business continuance services to a global customer base demanding a high level of security, reliability and responsiveness. Hosting.com monitors, manages, and enhances the web based platforms of Web 2.0 companies, software as a service providers (SaaS), content distribution networks (CDN), and medium to large enterprises whose web presence is crucial and high availability mandatory.

Hosting.com currently operates SAS 70 certified data centers in Louisville, Kentucky; Irvine, California; San Francisco, California; Boston, Massachusetts, and is currently expanding into Silicon Valley and Northern Virginia.

For more information, please visit www.Hosting.com or call the company at 800-446-7627.

About CapitalSouth Partners

CapitalSouth Partners was founded in 1998 to provide private equity and mezzanine capital to lower middle-market companies. Since its inception, CapitalSouth has closed over 50 transactions. With over $500 Million under management through multiple committed funds, CapitalSouth actively seeks to invest in lower middle-market companies located primarily in the South, Southwest and Midwest, but also throughout the U.S.

CapitalSouth Partners provides junior capital to lower middle-market companies for growth financings, management buyouts, control/leveraged buyouts, acquisitions and recapitalizations. The Fund seeks to invest between $3 Million and $15 Million in companies that possess strong competitive advantages and have proven, successful management teams. Investments of up to $25 Million can be arranged through syndication, where CapitalSouth Partners will serve as the lead investor.

CapitalSouth Partners is headquartered in Charlotte, NC and operates full-service offices in Raleigh, Tampa, Dallas, and Louisville.