Chairman and Chief Executive Officer Douglas J. Erwin noted, ''We had another significant quarter of annualized double-digit growth, accented by continued operational improvements, and again exceeding our plan. From our product portfolio, private racks continue to accelerate and contribute significantly to our revenue growth. Concurrently, our largest customers continue to grow with us at double the company's overall growth rate, which underscores their satisfaction with the depth of our products, services and support. This quarter we made our first acquisition, with the purchase of Indiana-based Touch Support. We have already begun incorporating these services, which provide additional capabilities for our dedicated server customers. We will continue to build-out our infrastructure and services, providing customers with the power to choose precisely what they require from the broadest range of products and services in the industry.

Mr. Erwin added, ''The outage we experienced this quarter was clearly serious and difficult, and we recognize the negative impact to our customers. We have conducted an exhaustive internal review and have concluded this was an isolated incident. We also have taken additional precautionary steps to examine all of our data centers, and we are confident that they are all in excellent working order. Despite this temporary setback, we continue to exceed the market growth rate estimates, and our outlook is positive.''

Chief Financial Officer Kevin Klausmeyer added, ''The Planet again produced a record quarter, with the highest year-over-year growth rate in more than a year-and-a-half. While our outage was challenging, we took every measure to minimize customer impact and believe there will be little customer loss. The majority of the financial impact is fully covered by property and business interruption insurance. Finally, we continue to invest in people and infrastructure to accommodate our growth.''

Second Quarter Financial Highlights Include:

Strong Customer Activity: In the second quarter, the company added more than 1,700 customers. The greatest portion of growth in the second quarter came from the company's current customers, as they continued to upgrade and expand their server portfolios.

Touch Support Acquisition: The company acquired Indiana-based Touch Support, with the goal of introducing a new portfolio of advanced services aimed at its self-managed dedicated server customers under the Planet Alpha brand. Customers currently can select from either a bundled or modular suite of services, including server administration, monitoring and security. Additional services will be added during the balance of the year.

SAS 70 Type II Compliance: The Planet successfully completed the Statement on Auditing Standards No. 70 (SAS 70) Type II audit. Developed by the American Institute of Certified Public Accountants, the widely recognized auditing standard represents that The Planet has been through a rigorous evaluation of its internal processes and controls through an independent third-party auditor.

Dallas Data Center Expansion: Based on popular demand for its products and services, the company began construction on an additional 12,000 square feet in its Dallas D6 data center, bringing the total data center footprint to 167,000 square feet.

New Virtual Racks: Adding to its popular, fast-growing private rack portfolio, the company introduced new virtual racks for customers who require advanced solutions that are both cost-effective and offer a smaller footprint with as few as two servers.

Executive Appointment: In a newly created role, the company appointed Robert Walters to lead its newly formed storage and backup business unit, with responsibilities for leading strategy and developing new products to extend the company's portfolio. Walters joins the company from Rackspace, with previous experience at EMC.

Data Center Award: TechTarget's SearchDataCenter.com awarded Vice President of Facilities Jeff Lowenberg its prestigious Data Center Manager of the Year award. Mr. Lowenberg was recognized for his work that will save the company more than $1 million on energy costs in 2008 alone.

Headquarters Award: Sponsored by the Houston Business Journal, The Planet won the Landmark 08 award for Best Corporate Headquarters Relocation.

Ultimately, The Planet's goal is to provide:

• High levels of network capacity and speed to deliver peak performance
• Instant scalability to handle even the largest spikes in network traffic
• Parallel, redundant, multi-tiered network routing and switching architecture to assure reliability and stability
• Multiple layer network security that prevents Delayed Denial of Service (DDOS) attacks from harming businesses
• Knowledgeable experts with a passion for excellence and a commitment to operate the best networks in the business

Sify has deployed Redline's RedMAX products in Delhi and Mumbai with the capacity to deliver business-class Internet services to enterprise users. Sify has also begun its WiMAX network expansion to Bangalore, Hyderabad and Chennai. The initial WiMAX network deployment in these regions is scheduled for completion in 2008.

Sify selected Redline's 3.3 and 3.4 GHz RedMAX products after a rigorous three-month evaluation process that included a number of broadband wireless solutions. The criteria for WiMAX equipment selection included WiMAX Forum Certification, high subscriber capacity, support for Service Level Agreements, security, ease of installation and cost-effectiveness.

Kevin Suitor, Vice President, Marketing and Business Development, Redline Communications Inc. added, ''Sify is recognized as a pioneer in wireless and corporate networking in India, with an innovative and successful model for offering communications services. With its professional approach to its network and business models, Sify is well positioned to meet its expansion targets with RedMAX.''

Redline's RedMAX family of WiMAX solutions includes the world's first complete system to receive the WiMAX Forum Certified mark for conformance to the WiMAX standards for performance and interoperability. Redline's carrier-class RedMAX Base Station (AN-100U) supports voice, video, and prioritized data traffic, enabling long-range, high-capacity wireless broadband networks. Redline's WiMAX products also include the RedMAX Indoor Subscriber Unit (SU-I) and Outdoor Subscriber Unit (SU-O) designed for enterprise and residential services. The RedMAX Management Suite enables operators to monitor and control the network, ensuring high service availability. Redline is maintaining its WiMAX leadership with the expansion of its RedMAX family to include products for additional frequency bands, applications and standards.

The RedMAX 4C, which is based on the WiMAX industry's 802.16e-2005 standards for mobile WiMAX, supports a wide range of fixed, portable and mobile wireless services including support Voice and Video over IP, broadband Internet access used to support highly valued education, medical, transportation and municipal applications, VPNs (Virtual Private Networks) and other advanced communications services. The RedMAX 4CMobile WiMAX platform is designed to enable operators to maximize the reach and customer density required for a profitable carrier business model. The RedMAX 4C includes a modular, standardized TCA (micro Telecommunications Computing Architecture) chassis base station that is small, lightweight and easy to deploy. RedMAX 4C will also include a suite of indoor and outdoor fixed and portable end-user devices including laptops, mobile handsets and PDAs. Redline's new WiMAX offering is also designed to facilitate the integration of its existing RedMAXproducts with its RedMAX 4C technologies, providing operators a path to true mobility.

Sify is among the largest Managed Enterprise and Consumer Internet Services companies in India, offering end-to-end solutions with a comprehensive range of products delivered over a common telecom data network infrastructure reaching 500+ cities and towns in India.

A significant part of the company's revenue is derived from Corporate Services, which include corporate connectivity, network and communications solutions, security, network management services, enterprise applications and hosting. Sify is recognized as an ISO 9001:2000 certified service provider for network operations, data center operations and customer support, and for provisioning of VPNs, Internet bandwidth, VoIP solutions and integrated security solutions, and ISO 27001 certified for InternetData Center operations. Sify has licenses to operate NLD (National Long Distance) and ILD (International Long Distance) services and offers VoIP back haul to long distance subscriber telephony services. The company is India's first enterprise managed services provider to launch a Security Operations Center (SOC) to deliver managed security services. A host of blue chip customers use Sify's corporate service offerings.

Consumer services include broadband home access, dial up connectivity and the e-port cyber cafe chain across 180 cities and towns. Sify.com the consumer portal of Sify has sub portals like www.samachar.com, www.walletwatch.com, www.sifymax.com and www.chennailive.in, www.bangalorelive.in, www.mumbailive.in, www.hyderabadlive.in the city based live video on the web. The content is available in 5 Indian languages, which include Hindi, Malayalam, Telugu, Kannada and Tamil.

A provider of IT and business process outsourcing services, Syntel assists core product and custom development, functional and performance testing, operations support for hosted customers, process workflow modeling and report development. Syntel resources are being trained and certified on the latest versions of TriZetto's product line. Syntel personnel also participate in a TriZetto-led mentoring program, and use TriZetto's development and product implementation accelerators. This approach augments TriZetto certified professionals in the United States, Mexico and India and strengthens the follow-the-sun model for TriZetto's development and hosting centers, as well as professional services.

Mr. Hascall added that the selection of Syntel was based on its Six Sigma process quality perspective, healthcare industry experience and willingness to work as a truly integrated partner: certifying their employees and adopting process models, quality metrics and tool sets.

Mr. Hascall added, ''The partnership is demonstrating results with cost and quality improvements achieved in the work we've already done to build customized extensions, interfaces, test scripts and reports and take what has traditionally been the swing shifts to provide 24-hour environment management of our hosting operations.''