Intermedia Passes 300,000 Mailboxes Hosted; Achieves 1,000% Increase in Accounts over 50 Mailboxes; and Wins MSExchange.org Reader’s Choice Award

Microsoft Worldwide Partner Conference, Houston, TX (July 9, 2008) - Intermedia, the global leader in business email services, announced today that it has surpassed 300,000 customer mailboxes hosted. In the past six months, Intermedia experienced tremendous growth in the number of accounts with fifty or more mailboxes, demonstrating the growing penetration of SaaS services into the midmarket. Further, over the past year, Intermedia also became a BlackBerry Alliance Member; was honored with the MSExchange.org Reader’s Choice award; and launched two major offerings: the first and only hosted Office Communications Server 2007 service and Intermedia Secure Mail email encryption. Intermedia is a Microsoft Gold Partner, the leading provider of Microsoft Exchange 2007 software as a service (SaaS) and the first company to offer Microsoft Entourage 2008 as a free download to customers. Achieving these milestones signals a landmark year for Intermedia.

“We are excited to have met aggressive goals in such a short amount of time,” said Serguei Sofinski, CEO, Intermedia. “Our achievements speak volumes to our customer satisfaction and we’re looking forward to continued success and additional opportunities to empower our customers and our partners.”

The SaaS market is experiencing tremendous growth and Intermedia has capitalized on this opportunity by making strategic business and solution decisions to support existing customer demands and its vision for tomorrow. For example, in addition to becoming a BlackBerry Alliance Member, Intermedia has met the demands of enterprise mobility by offering early support for email solutions on the iPhone 2.0 through ActiveSync capability. Its efforts have resulted in BlackBerry accounts growing 100% in the past six months and Windows Mobile ActiveSync accounts growing by 375% in the past year. Overall, the company has seen 122% growth in the total number of wireless accounts.