Torque Systems, Inc. Acquires DAX Network; Leading Systems Integrator for the Graphic Arts Acquires Largest Internet Provider.

Business Editors/High-Tech Writers

BOSTON--(BUSINESS WIRE)--June 5, 2001

Torque Systems, Inc., the largest national systems integrator for the graphic arts industry, today announced its acquisition of Digital Art Exchange (DAX), the leading Internet service provider for the industry. Terms of the acquisition were not disclosed, but it does not include the PrintPlanet.com spin-off. The DAX employees will now form the nucleus of Torque Systems' Boston office, the twelve-year-old company's eighth regional office. DAX network products will be offered and supported by Torque Systems nationwide.

The combined entity meets graphics users' needs for affordable open-systems networking and storage. Torque Systems has previously focused on the needs of storage, asset management and local area networking (LAN) for the graphic industry, while DAX's emphasis has been on wide area networking (WAN) for the same vertical market. Torque Systems contrasts its range of offerings with proprietary WANs such as Wam!Net and the recently shuttered Vio, as well as proprietary LAN storage systems from CreoScitex and Heidelberg.

"We pride ourselves on fulfilling the needs of the graphic arts industry, and this acquisition is a big step in broadening our services for this market," said Sam Bogoch, Torque Systems' CEO. "Bringing DAX's customer base, services and talents on board are key elements in building a full-line resource for the graphics community. Together, we expect to continue our rapid growth by bringing the power of open systems technology into this once-proprietary world."

DAX's COO, Martijn VanSteeg is confident that their customers are in good hands. "We are delighted to transition our networking customers to such a solid and respected supplier for the graphic arts industry."

Alex Hamilton, an industry analyst with Computers and Communication Consulting feels confident that the acquisition is beneficial to both client bases. Hamilton states, "It allows for the convergence of broadband telecommunications with local area networking, data storage and management that is beginning to occur in the graphic arts industry. This deal benefits Torque Systems' prepress and printing clients because the integration of their systems will enable designers, agencies and publishers to submit files and collaborate on work in progress in a secure and seamless manner."

DAX Internet customers have been transitioned to Torque Systems as of June 1st. Torque Systems has migrated DAX's NOC (network operations center) to a Verio tier-one colocation site, served by multiple Internet backbones for maximum redundancy. There will be no interruption in services or billing, and Torque Systems will continue to maintain the managed FTP, Web hosting and email services traditionally bundled by DAX. In addition, Torque Systems' 24/7 LiveResponse(TM) support service is also being phased in for all transitioned accounts.

About Torque Systems

Torque Systems, Inc. is the leading provider of server and storage systems for the graphic arts industry. Founded in 1989, the privately held company is headquartered in San Francisco, with regional offices in New York/New Jersey, Los Angeles, Orange County, Denver, Seattle, Dallas and Minneapolis. The company is focused on networking, storage and asset management solutions for the graphic arts. At the Seybold Boston conference earlier this year, Torque Systems introduced its acclaimed asset management solution, BrightVu. Its industry-leading LiveResponse support policy guarantees 24/7 availability of technical experts and ensures maximum production uptime. Torque Systems' customers include Leo Burnett Agency, Gallo Wineries, TimeWarner, Schawk, Photobition, IGI Earth Color, Cadmus and many others. DAX's customers include R.R. Donnelly, Cabela's, DDB Needham, and many other leading graphics companies. For more information visit www.torque.com or call 415/252-5521.