Yipes and TeraGate Establish Global Ethernet Services Alliance.

Companies Provide Multinational Enterprises With Seamless Ethernet WAN Services

SAN FRANCISCO -- Yipes Enterprises Services, Inc., the leading provider of managed Ethernet and application delivery services and TeraGate AG, the leading provider of Ethernet WAN connections to corporations in Germany, have signed an alliance agreement to provide Ethernet WAN services to multinational enterprises. Under the terms of the agreement, the two providers have agreed to interconnect their networks to provide seamless Ethernet WAN services to address the need for fast, scalable, and global network solutions. The agreement between the two companies underscores the importance of partnerships in the delivery of global Ethernet services.

Ethernet, the most popular computer networking technology in the world, is used by more than 95 percent of all LANs. Ethernet service, which uses Ethernet technology to interconnect offices across the metro or around the world, is the fastest growing sector of the telecommunications industry. According to Infonetics, the worldwide carrier Ethernet services market is growing at 40 percent annually and will reach an estimated $22.5 billion by 2009.

Yipes has more than 900 customers and operates one of the largest carrier Ethernet networks in the world, with coverage in North America, the U.K., Europe, and Asia/Pacific. TeraGate is the leading Ethernet services provider in Germany, with more than 700 national Gigabit Ethernet connections and multinational customers in Germany and Europe. As part of the agreement, Yipes will use TeraGate's network to access Germany, and TeraGate will use Yipes' network to access North America and Asia/Pacific. Yipes has established more than ten partnerships with global carrier Ethernet providers.

"Demand for international Ethernet services is high and building global partnerships is critical. By being a good partner, Yipes is able to deliver end-to-end managed Ethernet services worldwide," said John Scanlon, chief executive officer at Yipes. "TeraGate is an aggressive and innovative Ethernet carrier in Germany that complements our network expansion strategy."

"The alliance with Yipes is another important step in our international strategy. TeraGate already provides services across Europe, and from now on we're able to provide truly global services to our multinational customer base," said Gerhard Salzer, chief financial officer at TeraGate. "Yipes and TeraGate share a common vision of delivering fast, scalable, and simple network solutions to customers. In fact, Yipes has, as we do, an offering for variable bandwidth. Yipes OnDemand bandwidth provisioning feature perfectly complements our TeraGate IntelligentEthernet[TM] service."

About Yipes Enterprise Services, Inc.

Yipes is the leading provider of managed Ethernet and application delivery services for the global enterprise. Yipes' custom data networking solutions empower businesses by delivering high performance, dynamic control, unmatched service quality, and rapid ROI. Enterprise customers worldwide take advantage of Yipes' managed Ethernet services because they are easier to implement and manage than other services. Yipes' specialized offerings and obsession with customer satisfaction ensure that the company delivers the best quality experience. More than 900 enterprise customers worldwide rely on Yipes high-performance managed services to improve their competitive advantage. For more information, visit www.yipes.com.

About TeraGate

TeraGate specializes in developing and implementing high-availability data communication links based entirely on advanced Ethernet technology for connecting business locations and data centers. As a telecommunications provider, TeraGate has a national and international customer base comprising midsize and major companies to which it supplies tailored, demand-oriented and forward-looking network solutions. High-profile customers, including Deutsche Bahn and Infineon Technologies AG, rely on TeraGate to deliver the services and performance they need. In 2005, the company won the Deloitte Technology Fast 50 competition in Germany and took second place in the EMEA region. Today, TeraGate ranks among the fastest-growing technology companies. TeraGate AG, co-owned by Deutsche Bank and EGORA Holding, was formed in 2000 and is headquartered in Munich.