August 5, 2008
Momentum Acquires Top Ranked Technology Based Website
Momentum Advanced Solutions Inc. (TSX: WWW), ("Momentum" or the "Company"), a leader in IT hosting and managed website services, announced today that it has acquired a top ranked, industry relevant website, through a wholly owned US subsidiary, in order to increase web traffic and ultimately, reduce the cost of acquiring new customers for its www.ultrahosting.com web property.
The acquired site, one of the internets largest forums for IT professionals, is home to over 1,500,000 visitors per month and is ranked among the top 15,000 sites on the internet according to Alexa Internet, Inc. (An Amazon Company).In order for the website to maintain current advertising clients, management has determined that it is not in the best interests of the Company to disclose the name of the website at this time.
While the current and prospective advertising revenue from this site is certainly important, the Company is primarily focused on the large number of industry relevant visitors that this site attracts and the potential to present them with UltraHosting's quality hosting solutions.
UltraHosting was originally conceived by Momentum as a means to leverage its longstanding enterprise hosting expertise to the benefit of small and medium sized businesses worldwide. Launched in February of this year, UltraHosting has already provisioned nearly 500 dedicated and virtual private servers to hundreds of customers located around the globe.
"While the commercial hosting market is no doubt a burgeoning space, the requirement to manage customer acquisition costs in this competitive market has become a key success factor to profitable growth", stated Sheldon Pollack, CEO of Momentum. "Though we are clearly pleased with our success to date, our strategy has been to focus our efforts on implementing innovative methods of lowering our customer acquisition costs while at the same time increasing our rate of growth. We firmly believe that the acquisition of this top ranked, industry relevant website, aligns well with this strategic focus".
Momentum has recently acquired a number of much smaller industry relevant sites for total consideration of less than $100,000 USD.
Pollack added, "the management of Momentum is very aware and respectful of the loyalty that the sites members have demonstrated over the years and will do everything possible to ensure that the core values of these sites are not only maintained but embraced by all those privileged enough to be working on these unique properties".
About Momentum Advanced Solutions Inc.
Momentum is a leading provider of managed website services. Its solutions provide customers with the innovation, integration, and operational expertise needed to reduce costs and/or improve productivity by outsourcing their mission critical, web-based applications and infrastructure to Momentum. Headquartered in Markham, Ontario, Momentum has offices in Ottawa, Windsor, Calgary and Toronto. Momentum Advanced Solutions is publicly traded on the Toronto Stock Exchange and trades under the symbol WWW.
Contacts: Momentum Advanced Solutions Inc. Sheldon Pollack Chief Executive Officer (905) 709-6825 Email: [email protected] Momentum Advanced Solutions Inc. Daren Selfe, CA Chief Financial Officer (905) 709-6800 Email: [email protected] Website: www.momentum.com
SOURCE: Momentum Advanced Solutions Inc.