Data Center and Telecom Infrastructure Provider Secures Financing; Collocation Solutions raises $3.3 Million in Financing Round Led by Koch Telecom.

Business Editors

DALLAS--(BUSINESS WIRE)--Sept. 30, 2002

Collocation Solutions, LLC, a provider of shared data center services and telecommunications infrastructure based here, has raised $3.3 million in a private round of debt financing.

This latest financing was led by Koch Telecom, LLC and includes existing investors Hunt Capital Growth Fund II, L.P. and BG Media Intermediate Fund, L.P.

"The new cash will fund our growth as well as provide reassurances to our customers," said Jim deVenny, president and chief executive officer of Collocation Solutions. "There is a flight to quality from customers who have outsourced their mission-critical IT to firms that are financially distressed. Those customers see Collocation Solutions as a reliable provider in our industry, and that is important right now."

Koch Telecom vice president Steve Kromer said the company searched for an operator that could distance itself from competitors. "We were impressed with their focus on servicing larger enterprises and the caliber of their anchor customers," he said. Collocation Solutions' customers include Electric Lightwave, a subsidiary of Citizens Communications, and Wyndham International.

"We are pleased at the commitment shown to our company and the belief in our business model. It allows us to proceed with the development of the large opportunities we are involved with," said Don Frasier, executive vice president of Collocation Solutions.

In addition to the financing from Koch Telecom, Koch Business Solutions, LP will make Collocation Solutions' services available to the diverse group of affiliates to which it provides IT infrastructure solutions.

Collocation Solutions, LLC is a privately held, build-to-suit telecommunication and data center infrastructure service provider. Founded in 1999, the company assists enterprises in meeting their collocation and data communication needs. Collocation Solutions provides unbundled services in state-of-the-art, carrier neutral data centers. For more information, visit www.collocationsolutions.com.

Koch Telecom, LLC is a subsidiary of privately held Koch Industries, Inc., which is based in Wichita, Kansas. Koch Industries owns a diverse group of companies engaged in commodity trading, financial investment and asset operations worldwide, in industries ranging from petroleum refining and industrial equipment manufacturing to plastics and information technology. More information is available at www.kochind.com.