UK2 Continues Expansion by Acquiring Shared Hosting Assets from midPhase Services Inc.

December 22, 2007 - Leading web hosting organization UK-2 Group, Ltd. (www.uk2group.com), announced today that it has completed the acquisition of US hosting provider midPhase Services Inc.’s Shared and Virtual Private Server businesses. This acquisition continues the expansion plans of UK-2 Group and closely follows the recent acquisition of clients from US host Stargate.

“We are extremely happy to announce our acquisition of midPhase” commented UK-2 Group CEO Ditlev Bredahl. “It is the next step towards achieving our ambitious growth strategy and the continued international expansion of UK-2 Group. This acquisition now makes UK-2 Group one of the largest international hosting companies, which will allow us to have a hugely positive impact on the marketplace.”

UK-2 Group has been a significant player in the British and European hosting markets for many years, and recently underwent a large restructure, making important organizational changes in readiness for customer growth plans and challenging the bigger hosting brands. UK-2 is one of the largest domain registrars in the UK having registered over 1 million domain names.

“Zak and I are both very happy to announce the handover of our shared and VPS customers to UK-2. We’re very happy to have been able to reach a deal which results in minimal disruption to our customers,” said Dan Ushman, Co-founder and President of midPhase Services, Inc.

UK-2 Group intends to continue operation of midPhase’s various brands, including: midPhase.com, ANHosting.com and Autica.com, due to its successful approach and market leadership to date. UK2 will not integrate midPhase into any existing UK-2 Group brand. This means there will be no impact on existing midPhase customers in terms of products, services, prices and support. UK-2 does not plan to migrate servers and has chosen to collocate the existing midPhase servers with SingleHop, Inc., a company owned and operated by Zak Boca and Dan Ushman.

About UK2

UK-2 Group, a major player in the British hosting industry since the late nineties, provides domain name registration and web hosting services to many customers through its family of hosting brands – UK2.net, US2.net and Resell.biz. The group operates its services out of several state of the art, multi million pound data centers and are committed to providing reliable, secure and great value products and services underpinned with excellent support. UK2-Group is also a major shareholder in the merged Redbus Interhouse and Telecity Group, the leading European data centre provider.



About midPhase Services, Inc.

midPhase Services, Inc. is a privately held web hosting and Internet services company founded in 2003 and based out of Chicago. midPhase provides budget, shared, advanced and other types of web hosting services to a wide range of clients ranging from small business to individuals. By providing a robust technological base and reasonable pricing, midPhase is able to offer customers an unbeatable value. midPhase is able to distinguish itself from countless other providers by offering an incredible value to our customers. This combination of advanced products and affordability has helped midPhase retain a record-breaking growth pattern, faster than the industry average every month since inception. Unlike most web-hosting providers, midPhase owns all of the hardware it uses. midPhase does not rent or lease servers.