Interland Acquires Dialtone Internet

Atlanta-based Web hosting specialist Interland, Inc.
continues to be busy on the acquisition front, announcing a deal to gobble
up the assets and business of competitor Dialtone Internet. Terms of the
transaction were not disclosed.

With the acquisition, Interland said it narrowed the gap on rival Verio in
the small and medium enterprise (SME) hosting space. The deal, the fourth
completed by Interland in the last six months, includes the small business
Web hosting businesses of Interliant, AT&T, and CommuniTech.Net.

All employees of the Fort Lauderdale, Florida-based Dialtone Internet would
join Interland and former CEO Alvaro Albarracin has been hired as an
executive of Interland.

Interland chief executive officer Joel Kocher said the Dialtone operation
was already profitable and is immediately accretive to earnings.

The company, which hawks business-class Web hosting technology for small and
medium businesses, said it now counts more than 220,000 recurring revenue
Web hosting customer accounts and 400,000 paid hosted Web sites.