Terremark Acquires Dedigate

Monday, August 08, 2005

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Terremark Worldwide, Inc., an operator of integrated Tier-1 Internet Exchanges and network services, today announced the acquisition of Dedigate N.V., a privately held European managed dedicated hosting provider.

The Dedigate solution allows for integration and deployment of their products in each of Terremark's Internet exchanges around the world. Terremark acquired all of the outstanding stock of Dedigate in exchange for 1.6 million shares of Terremark's common stock. According to the company, Dedigate's existing annual recurring revenue is approximately $7 million, with projected revenues over the next twelve months to exceed $10 million and it is expected to be accretive for Terremark's fiscal year ending March 31, 2006.

"We have been examining acquisitions that are accretive both on the basis of revenue and technology. Acquiring Dedigate is consistent with our strategy of maximizing our revenue yield by layering managed services onto our existing infrastructure services and connectivity platform," said Manuel D. Medina, Chairman and CEO of Terremark Worldwide. "Adding a family of scalable, proven hosting and infrastructure management products allows us to better address the business continuity and disaster recovery needs of the enterprise and government sectors, and gives us the ability to provide a complete solution to our new and existing customers."

"Dedigate's technological expertise, automated systems and deep understanding of the dedicated hosting business has allowed it to successfully compete head to head with large global players for a share of the European enterprise hosting market," said Herman Oggel, Chairman and CEO of Dedigate.