Interland Announces Business Solutions Strategy.

Business Editors

ATLANTA--(BUSINESS WIRE)--March 11, 2004

Interland, Inc. (Nasdaq: INLD), a leading provider of business-class Web hosting and online services to small and medium businesses (SMBs), announced today that it had decided to place more emphasis on further developing indirect channel distribution strategies for its Business Solutions line of products rather than continuing large-scale direct sales efforts. Interland had announced last year that it was developing a line of products and services designed to help mainstream businesses attract and serve customers through websites supplied by Interland's team of designers using its proprietary software.

"In the more than six months we have been selling our Business Solutions products we have proven to ourselves that we have many of the capabilities necessary to successfully penetrate this market," said Joel J. Kocher, Interland's chairman and chief executive officer. "We have found, though, that we have some very significant opportunities to improve the efficiency of our delivery and the breadth of our solutions, and we will be focusing our resources on these objectives."

Allen L. Shulman, Interland's chief financial officer, said, "As a result of our decision today we have substantially reduced the size of our Business Solutions field sales force, and we will be concentrating our website and software development teams in Atlanta for greater interaction with the rest of our team. With concommitant reductions in related G&A costs, these changes will substantially lower our expenses while we continue to perfect our approach to the mainstream through the less expensive channels we have identified. Combined with the progress we continue to make in our core hosting businesses, we expect these decisions to have a very healthy effect on our earnings and cash flow. We will report on this more specifically during our second quarter earnings announcement."

The company also announced that it would schedule its second quarter earnings announcement and conference call to coincide with the filing of its Form 10-Q. Details for the earnings conference call will be provided in a subsequent press release, and at www.interland.com.

About Interland

Interland, Inc. (Nasdaq: INLD) is a leading Web hosting and online services company dedicated to helping small and medium businesses achieve success by providing the knowledge, services and tools to build, manage and promote businesses online. Interland offers a wide selection of online services, including standardized Web hosting, e-commerce, application hosting, and Web site development, marketing and optimization tools. For more information about Interland, please visit www.interland.com.

Forward-looking Statements 

Except for the historical information contained in this press release, statements in this press release may be considered forward-looking statements. These forward-looking statements include, but are not limited to: the anticipated impact on the company's earnings and cash flows of the actions announced today and other statements concerning matters that are not historical facts. Actual results may differ materially from those contained in the forward-looking statements in this press release. Factors which could affect these forward-looking statements, and Interland's business, include but are not limited to: the ability to operate within budgeted expense, the ability of the company to improve customer satisfaction, reduce churn, and expand its customer base as planned, general economic conditions, the impact of competition, quarterly fluctuations in operating results, the loss of customers with failing businesses and customer churn in general, customer acceptance of new products and services, the possible lack of availability of our restricted investments, the retention of key employees, investments in new business opportunities, the company's ability to make infrastructure investments at a lower cost per customer than its competition, higher than expected costs of litigation and the impact of liabilities that could carry over from Micron Electronics' discontinued operations. Certain of these and other risks associated with Interland's business are discussed in more detail in its public filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K, and its proxy statement. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company does not undertake to update its forward-looking statements.