CEO Douglas Erwin says: Managed Web hosting business is making great strides and hitting its revenue targets.

HOUSTON, May 19, 2010 – The Planet, the global leader in IT hosting, today discussed its results for the quarter ended March 31, 2010. The Planet provides quarterly updates to its customers, business partners and prospects with information relative to new initiatives and its progress.

“We ended the first quarter with encouraging results that included increased revenue and EBITDA beyond 30%,” said Chairman and Chief Executive Officer Douglas J. Erwin. “We launched the year with an entirely new focus on delivering customer value, coupled with the declaration of being first-to-market with the latest processors for our customers. The upper end of our business continues to grow at double-digit rates, and the managed hosting business is making great strides and hitting its revenue targets. We’re encouraged by participation in our cloud computing beta program, which we expect to launch this quarter.

“Ultimately, operational excellence represents the best barometer on our performance. We’re continuing to raise the bar with the goal of providing the best performance and customer service across the board for our customers.”

“We had another solid quarter, with our virtual rack and managed hosting offerings performing very well across all geographies,” said Chief Financial Officer Kevin Klausmeyer. “Our business outside of North America continues to be impressive, with strong year-over-year revenue growth in Brazil, China, Russia, Denmark and the Czech Republic. Our current deal pipeline is very strong, with more ‘large deals’ being worked than we have seen in the company’s history. The balance sheet remains healthy, with net debt below half of our trailing twelve months of EBITDA.”

First Quarter Highlights

Complex Infrastructure Growth: The company’s complex infrastructure solutions, which include virtual and private racks, experienced double-digit growth year-over-year, continuing to make them the fastest-growing products in the portfolio.

New Servers: The company announced its goal to be first-to-market on key server technologies that enable customers with high performance. The Planet was the first hosting provider to make available the Dell PowerEdge R710 server, equipped with the Intel® Xeon® X5600 series processor and built on its next-generation Westmere microarchitecture. The company also added two entry-level, value-priced servers equipped with the new Dell Intel Pentium G6950 processor.

New Pricing Reductions: The Planet announced price reductions across its product portfolio to

affirm its value leadership position. From domestic and international servers in London, to CDNs, bandwidth, services, and hard drive and RAM upgrades, the company lowered pricing and took deliberate steps that enable customers to extract more value from their hosting investments. Prices
were reduced from 7 to 30 percent, while RAM and hard drives were reduced by 50 percent.

Enhanced Reseller Program: The company announced sweeping enhancements to its Partner Plus Program for resellers and extended its leadership position as a preferred hosting platform. Partners can take advantage of volume discounts up to 20 percent, depending on monthly order value, and new server bundles optimized for resellers. The Planet also added Commission Junction (http://www.cj.com) to its affiliate network.

Network Investments: The company outlined plans to spend more than $7 million to enhance the network infrastructure in Houston and Dallas. The capital investments include network capacity upgrades, expanded infrastructure for Private and Virtual Rack solutions, new routers and switches, and robust test platforms to evaluate custom solutions. To increase network resilience and capacity, the company plans to double the number of 10 Gig-E links connecting its data centers with its Internet Service Providers. Also planned are capacity and functionality upgrades to meet the unprecedented traffic utilization demands of its colocation and managed hosting customers.