Rocky Mountain Internet Acquires Application Methods

Denver-based Rocky Mountain Internet Inc. (RMI)
acquired Application Methods Inc., a software development and consulting firm specializing in custom database-driven solutions, in a $5 million deal.

Application Methods, founded in 1986, provides high-level development and
consulting services to companies like Netscape Communications NetObjects Inc., SmithKline Beecham and Ernst & Young.

The company recently developed what has become its flagship product, e-SELL,
an Internet store/catalog software package that enables complete browser-based store administration.

“The integration of e-SELL and Infohiway, our recently acquired search
engine technology, will enable RMI’s customers to quickly establish and
maintain a worldwide online shopping outlet backed with the marketing muscle
of a unique search
engine,” said Doug Hanson, chairman and CEO of RMI.

Under the terms of the agreement, RMI will acquire the Seattle-based company
in a $5 million transaction of which $2.5 million in company stock will be
paid up front, and the remaining sum will be disbursed over the next three
years.

Application Methods’ founder Ron Stevenson will join the RMI management
team as president of Application Methods Inc. The company will continue to
operate in Seattle and function as a wholly owned subsidiary of RMI. Hanson
will become
the CEO.

Rocky Mountain Internet is a full-service, national telecommunications company
providing Internet access, high-speed Internet access through wireless cable
technology, Web development and hosting, network management, system
integration, co-location services, local phone service and IP Telephony long
distance standards.