Hostopia launches a powerful new suite of email services

    Hostopia continues surge of new offerings by releasing a new suite of
    email services targeted at SMBs, including collaboration and sync tools.

Inc. (TSX: H), today announced its release of a powerful new suite of
value-added email services for small- and medium-sized business enterprises
(SMBs). The services are intended to be significant revenue and profit
generators for service providers while meeting the growing demands of SMBs for
critical email functionality, such as collaboration and data synchronization.
    Colin Campbell, Hostopia's CEO and COO says, "The two to twenty-five
employee organization requires their email service provider to offer features
such as the sharing of calendar and contact information between employees as
well as the ability to synchronize data between email systems and mobility
devices, such as Microsoft Outlook and, say, their Palm or R.I.M. device.
Hostopia's new managed email platform offers these features, and more, at very
compelling end user prices."
    Hostopia reports that the new service provides several capabilities in
demand by SMBs, including very large email file storage limits of 3 GB or
greater, collaboration features such as shared calendars, contacts, tasks and
notes, and the ability for users to synchronize email-related data between
their desktop, web-based email applications and a large choice of wireless
mobility devices.
    Campbell adds, "Small businesses, including the "prosumer", are
increasingly demanding the ability to have their vital business data, such as
calendars and contacts, available to them at all times, regardless of their
whereabouts or access to their traditional office email system. Our
SyncML-based services allow users the freedom to access data seamlessly via
their desktop, webmail or their wireless mobility device. An additional
benefit is having a secure backup of their data, offering protection against
the consequences of a lost or replaced mobile device."
    Hostopia's managed email services are available to service providers such
as telcos, ISPs and broadband providers on a private-labeled, wholesale basis.
Service providers can offer Hostopia's email service to end users under their
own brand including a customized look and feel in the end user interface.
API's available from Hostopia even allow service providers to fully integrate
the email services into their own customer login environments such as
web-based business portals or online authentication applications.
    Typical service provider market strategies for implementing advanced
email services include bundling with higher value services such as upgraded
broadband offerings or selling the email services on a stand-alone basis on a
monthly, per-user subscription model.
    For more information on Hostopia's email services, visit

    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

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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