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Munich site opening marks seventh Business Internet facility in Europe

CityReach International (CRI), the pan-European provider of infrastructure
and managed service for the Business Internet, today announced the opening
of its site in Munich.

The 13,000 square metre facility is well placed for the new generation of
Systems Integrators (SIs), Application Service Providers (ASPs) and web
hosters operating in Germany who wish to enable their corporate customers'
e-business initiatives. This is the second site to be opened by CityReach
in Germany over the last two weeks and the seventh facility opened in
Europe since its launch in April 1999. CityReach now boast sites in
Amsterdam, London, Budapest, Dublin, Stockholm, Berlin and Munich.

Speaking about CRI's establishment in Munich, Hans Spitzner, member of the
Bavarian parliament, State Secretary of the Bavarian Ministry for Economic
Affairs, Transport and Technology, who officially opens the Munich
facility today added: "The CityReach facility in Munich strengthens an
already dynamic and innovative German IT-environment. Security and
availability are becoming of key strategic importance when European
companies migrate more and more IT processes over to the Internet. The
opening of this facility is another milestone in Munich's development as a
gateway to Europe for international companies and further highlights the
government's progress in attracting e-commerce enterprises here."

Commenting at the Munich launch, Dr. Sanjaya Addanki, CRI's CEO explains,
"Munich and Germany are rapidly developing as e-commerce hubs for Europe
and the establishment of our facility here puts us one step further
towards our goal to set the standards in the next generation of
infrastructure and managed services. In Munich we will be offering our
partners the same quick and easy access to our facilities and managed
services, with no compromise on security or technical excellence. With the
opening of the Berlin site just two weeks ago, the opening also
demonstrates our ongoing commitment to the German business community.

"The success of our facilities in the Netherlands, the UK, Hungary, Sweden
and Ireland has validated our belief, our business plans and our goal to
set the standard for supporting the growth of the Business Internet."

Addanki, who joined CityReach from IBM, where he was Vice President
responsible for IBM's e-Hosting services in Europe, Middle East, and
Africa, continues, "Eighteen months ago the Internet was pretty much a
consumer affair. We talked about how many boxes of chocolate and bouquets
of flowers were sold on the Internet. Looking forward, the bulk of the
spend on the Internet is going to come from large and medium corporates
moving their business applications to the web - these would include supply
chain management; enterprise resource planning; customer relationship
management; e-market places and e-procurement. It is these core
businesses moving onto the web that are driving the need for a solid
Business Internet."

CityReach's Munich operation will provide the security, reliability,
manageability and scalability found in in-house data centres to the new
generation of SIs, ASPs and web hosters that service the major corporates.

Unlike traditional carrier hotels, co-location and application hosting
providers which offer little more than 'rack-based real estate' and are
designed to serve the IP environment with its high tolerance of failure.
CityReach is rooted in the mission-critical, zero tolerance, corporate IT
culture. The Munich site, in common with the rest of the CityReach
pan-European network, will offer value through comprehensive and
guaranteed managed services from a highly secure and reliable environment.

About CityReach International

Headquartered in London, with offices across Europe and the U.S.,
CityReach International (CRI) is setting the standard for the
infrastructure and managed services that form the foundation for the
Business Internet. The company is building a pan-European managed
infrastructure platform with seven high-quality, secure data centres
already operational. The CityReach International team has unrivalled
industry experience in the areas of secure, reliable data centres,
corporate application development environments, customer care and service
delivery. The company is investing over $350m in its products and
services deployment plan with backing from leading venture capitalists
including Battery Ventures, Chase Capital Partners, M/C Venture Partners,
Investcorp, Morgan Grenfell Private Equity and Vulcan Ventures.

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