NEWS

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Michigan ISPs Iserv and EagleNet Merge

Combined Entity Will Serve Nearly 40,000 Business and Residential Users

GRAND RAPIDS, MI and HOLLAND, MI – May 14, 2002 – Two of Michigan’s leading Internet service providers have merged to provide business and residential Web users with enhanced services and expanded technology options.

The Iserv Co., one of the largest independent ISPs (Internet Service Providers) in Michigan, announced today it has acquired Holland, Mich.-based EagleNet, Inc., which serves residential and business users along West Michigan’s lakeshore.  Terms were not disclosed.

The two companies, when combined, will offer a full range of connectivity, Data Center and Web Services to a subscriber base of nearly 40,000 business and residential users throughout Michigan.  Following the transaction, the management teams of the two companies will work together to operate the combined entity, which will employ more than 50 at facilities in Grand Rapids and Holland. 

“This is truly a case where the sum of the parts will be greater than the whole,” said Victor Shepherd, chief executive officer of Iserv.  “Iserv and EagleNet each offer unique strengths in terms of product offerings and markets served, but we share a commitment to service and a fundamental focus on the customer.  When combined, we will be able to leverage the investments each organization has made over the past few years in technology and operations, while still retaining a high-touch, localized approach to customer service.”

Following the transaction, Iserv and EagleNet will continue to provide local service under their current brand names, with EagleNet (www.egl.net) maintaining its focus on Lakeshore markets.  Iserv (www.iserv.net) will continue to provide statewide coverage from its Grand Rapids headquarters.  EagleNet and Iserv customers will continue to use the same email addresses and dial-up numbers.

I expect a seamless transition and am very excited by the expanded possibilities we’ll be able to offer EagleNet customers in the future,” said EagleNet President Rick Huizenga. “Iserv’s world-class Data Center in Grand Rapids will provide EagleNet customers access to an extensive range of additional services, including statewide network coverage.”

The transaction follows two years of rapid growth and investment at Iserv.  The Grand Rapids, Mich.-based ISP invested more than $5 million to upgrade its facilities, creating a Tier 1 Data Center with redundant and reliable networks.  The company’s executive management team has also made significant upgrades to Iserv’s engineering and customer-service capabilities.

“We have built a strong management team, a deep bench of technology talent and a cutting-edge Data Center that ranks among the best of its type in the Midwest,” Shepherd said.  “We will look to maximize these assets by partnering with high-quality, service-oriented ISPs throughout Michigan and beyond.  Our plan is to continue to identify and affiliate with well-run, locally focused companies like EagleNet that can benefit from the investments we have made in the future.”     

Shepherd concluded: “Both companies are strong and growing.  Iserv had a very successful year in 2001, while EagleNet increased its sales by more than 50% in the same period.  Moving forward, we will grow together by building on the strong reputations and long-standing histories of providing excellent service to Michigan businesses and individuals.”

About The Iserv Co.

Since its beginnings in 1995 as a local ISP, the Iserv Company has grown rapidly as it has expanded the services it provides.  Iserv’s Tier 1 Data Center is one of the top facilities of its kind in North America, with redundant and reliable networks, and engineering and design expertise.  Iserv’s service offerings include Internet and Network Access (Dialup, ISDN, DSL, Dedicated Lines, Virtual Private Networks), Data Center Services (Website Hosting, Server Hosting, Application Hosting), and Website Design and Development.

About EagleNet, Inc.

EagleNet, founded in 1996, is a full service ISP that serves both residential and business customers from its headquarters in Holland, Michigan. EagleNet’s service offerings, which include dialup, DSL, dedicated lines, web hosting, and co-location, will be expanded to include the full range of service offerings made possible by Iserv and its Tier 1 Data Center.