Data Return Expands Reach With New Data Centers in New York, Washington, D.C. and London.

Business Editors & High-Tech Writers

DALLAS--(BUSINESS WIRE)--Dec. 29, 1999

Data Return Corp. (Nasdaq:DRTN), a leading provider of advanced Web and application hosting services for the Microsoft platform, today announced the opening of three new data centers, located in New York City, Washington, D.C. and London. These data centers are in addition to established locations in Dallas and San Francisco.

By extending its footprint into these three new markets, Data Return can provide its customers with increased access to local data centers and therefore reduce the associated costs of private circuit infrastructure. Additionally, the new data centers allow the company to expand its clustered service offerings to include geographically dispersed clustering (GDC) solutions for transactional applications.

"From a global deployment perspective, we can provide our customers with significantly faster network performance by optimizing network transit for specific countries," stated David Kramer, director of Technical Services for Data Return. "Since global clustering allows us to shape IP traffic by country, our GDC customers can specify that their sites default to the native language of those countries without prompting their site visitors."

"We live and work in a global economy, and it is imperative that our customers are able to access and maintain the most accurate and current information, no matter where they are located," said Data Return Chief Executive Officer Sunny C. Vanderbeck. "With the addition of these new data centers, we can minimize the costs and complexities associated with global deployments for our customers so they can focus on delivering more business value for their customers."

The data centers are part of Data Return's relationship with Level 3 Communications, which provides them with access to more than 30 Level 3 Gateways around the world. By partnering with Level 3 Communications, Data Return can continue to enter new markets rapidly without incurring the associated costs and timeframes of new data center construction.

"Worldwide data center access and global IP network infrastructure are the hallmarks of our partnership with Level 3 Communications. By working with Level 3, we can provide our customers a best-of-breed solution for both their domestic and International application deployments " said Vanderbeck. "This relationship provides us with a distinct competitive advantage in that we can be in more markets faster than any other advanced Web and application service provider."

About Data Return

Data Return is a leading provider of advanced managed hosting services based on Microsoft technologies. Data Return specializes in providing high-end clustered hosting solutions for customer applications that require high availability or scalable performance. These applications include custom developed Web-based applications including intranets and extranets, Microsoft Exchange and various commercial applications.

Data Return's managed hosting services also serve as a platform for enabling Independent Software Vendors to become Application Service Providers. Data Return currently manages more than 1,600 applications for more than 800 companies worldwide.

The company has strategic partnerships and minority investments from Microsoft Corp., Compaq Computer Corp. and Level 3 Communications. Data Return is a Preferred Provider of Advanced Microsoft Hosting for Level 3 Communications and an Executive Level Member of the ASP Industry Consortium. More information is available by visiting the Company's Web site at www.datareturn.com.

This news release contains forward-looking information. Actual results may differ materially due to a number of risks, including changes in external competitive market factors, changes in or an inability to execute Data Return's business strategy, unanticipated changes in the hosting industry, the economy in general and changes in the use of the Internet. Data Return cannot guarantee future results, levels of activity, performance or achievements. The matters discussed in this news release also involve risks and uncertainties summarized under the heading "Risk Factors" in Data Return's Prospectus dated Oct. 27, 1999, and are updated from time to time through the filing of reports and registration statements with the Securities and Exchange Commission. Data Return does not assume any obligation to update the forward-looking information contained in this news release.

Note to Editors: Data Return is trademark of Data Return Corp. All other trademarks are the property of their respective holders.