Hostopia acquires assets of

    Increased inventory of web site templates strengthens Hostopia's position
    as wholesaler to communications service providers.

    MISSISSAUGA, ON, and FT. LAUDERDALE, FL, June 5 /CNW/ - Inc.
(TSX: H), today announced that it acquired all of the operating assets of, a division of Geeksforless Inc. ("GFL"). The acquired
assets include all of the ownership rights to over 3,200 web site templates
that were jointly owned by Hostopia and GFL. Other assets include exclusive
rights to 1,600 additional web site templates, over 30,000 digital images and
a retail and channel software distribution system for templates currently
powering the template distribution site Hostopia's purchase
price for the assets was CAD $247,000.
    Hostopia's chief marketing officer, Paul D. Engels states, "Web site
design is increasingly demanded by small- and medium-sized businesses
endeavoring to establish an online presence or to improve their existing web
sites. Consumers and developers alike are finding professionally designed,
pre-built websites speed their time to market and reduce site development
costs. Our purchase of web site template business assets from GFL gives us one
of the world's largest inventories of web site templates and images available
to communications service providers for sublicense to their customers. The
powerful search and distribution software is an added bonus that will help us
distribute website templates both to service providers and their SMB
    Hostopia offers more than 4,800 web site templates and 40,000 web-ready
photo and business-themed animated images to its customers, who in turn resell
these offerings to business owners of web site developers. All but 500 of the
web site templates are owned by Hostopia. The remaining number contain images
licensed for use by Hostopia's service provider customers and their end-users.
    "Hostopia has a multi-channel distribution strategy to meet the needs of
the SMB market," says Engels. "Our customers can bundle web site templates
free of charge with web services that we offer. Alternately they can sell
templates on a stand-alone basis as a profitable product offering that helps
drive their web hosting business. Web site designers and developers have the
option of purchasing templates directly from or
bulk-licensing large numbers of templates from Hostopia," he adds.
    The software assets acquired from GFL, a related party to Hostopia, will
become part of Hostopia's operations. Hostopia will focus on continuing to
build its inventory of templates for distribution through its existing
customer base of more than 330 communications service providers, as well as
web developers, retail hosting service providers and others seeking web site
design applications and web site templates.

    About Hostopia

    Hostopia is a leading provider of web services that enable small- and
medium-sized businesses to establish and maintain an Internet presence. The
company's customers are communication services providers, including
telecommunication carriers, cable companies, internet service providers,
domain registrars, and web hosting service providers. Hostopia's customers
purchase their web services on a wholesale basis and resell these services
under their own brands to small- and medium-sized businesses. The company
provides customers with the technology, infrastructure, and support services
to enable them to offer web services, while saving them research and
development as well as capital and operating costs typically associated with
the design, development, and delivery of web services.

    Forward-Looking Information

    This press release includes certain "forward-looking statements" and
forward-looking information that are subject to risks, uncertainties and other
factors that could cause actual results or outcomes to differ materially from
those contemplated by the forward-looking statements. These forward-looking
statements and forward-looking information include, but are not limited to,
plans, objectives, expectations and intentions and other statements contained
in this press release that are not historical facts and statements identified
by words such as "expects," "anticipates," "intends," "plans," "believes,"
"seeks," "estimates" or words of similar meaning. Our actual results could
differ materially from those anticipated in these forward-looking statements
and forward-looking information upon completion of the review of our year end
results by our independent registered public accounting firm. These statements
are based on our current beliefs or expectations and there are a number of
important factors that could cause the actual results or outcomes to differ
materially from those indicated by these forward-looking statements, including
without limitation, our ability to maintain our sales efficiency, our ability
to maintain our existing, and develop new, strategic relationships, the number
of our net subscriber additions, our monthly customer turnover and our ability
to successfully integrate recently acquired businesses and operations and
those risks set forth or referenced under the caption "Risk Factors" in
Hostopia's Quarterly Report on Form 10-Q for the quarter ended December 31,
2006, as filed with the Securities and Exchange Commission. These filings are
available on a website maintained by the Securities and Exchange Commission at and on our corporate website under Investor

    %SEDAR: 00023928E

For further information:

For further information: Paul D. Engels, Chief Marketing Officer & Exec.
Vice President, Inc., Tel: (905) 671-7204, Email:; Gordie Campbell, Investor Relations,
Inc., Tel: (877) 444-4116, Email:

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