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Press Release

SoftLayer Announces Record Results for 2007; Pace Accelerating in 2008

Dallas—February 14, 2008—SoftLayer has radically expanded its network-within-the-network topology by connecting its Dallas and Seattle datacenters with a dedicated 10G fiber link. The company’s private and public networks are now both connected between the cities via private, 10G point-to-point connections, providing the fastest connection with the lowest latency.

Key milestones achieved by SoftLayer during 2007 include:

• $33 million in annualized revenue, up from $13 million in 2006
• 32% EBITDA and 5% EBIT margins
• 155% growth in customer base
• 25% growth in revenue per customer
• Over 11,000 servers under management
• Customers in over 100 countries with 40% based outside of the US

Along with record financial and operations results, SoftLayer continued its market leading position by developing new products and solutions for the industry. This included the launch of:

• The SoftLayer API targeted at resellers, enterprises, the developer community (including social networking innovators such as Facebook and MySpace), and other heavy users with existing investment in management tools
• StorageLayer, an enterprise-class offering at mass-market pricing
• Best-in-class security services based on solutions from McAfee and TippingPoint
• A robust load-balancing solution
• Addition of a second data center to enhance capabilities across all service offerings

The company continues to be cash flow positive and has substantial financial commitments in place to achieve all business plan targets. SoftLayer will continue to invest in infrastructure to deliver on-going product innovation to customers around the world. Planned enhancements in 2008 include an update to the API to better serve the needs of sophisticated users, a virtualization offering, and the addition of two new data center locations to meet the growing demand for SoftLayer services. SoftLayer will drive forward with its vision for allowing businesses to operate serverless IT departments by delivering real-time technology that scales with the success of the business.

"The momentum of 2007 and the strong demand for our services on a global basis, has clearly carried forward into 2008. January was a record month for customer acquisition and server sales reaching 1300 units." Mr. Crosby confirmed. "We are expecting 2008 to be an exceptional year for SoftLayer and its customers."

About SoftLayer Technologies

Headquartered in Dallas, SoftLayer is the innovation leader in Cloud, Dedicated, and Managed Hosting, and the largest private hosting company in the world. SoftLayer provides cloud, dedicated, and seamlessly integrated computing environments, with world-class data centers in Dallas, Houston, San Jose, Seattle, and Washington D.C., and network Points of Presence nationwide. The company integrates and automates all elements of its platform, empowering enterprises of any size with complete control, security, scalability, and ease-of-management via a leading Customer Portal and Open API. For more information, please visit www.softlayer.com or call 866.398.7638.

Contact:
Mark Quigley
Director - Corporate Communications
+1 214 442 1842
mquigley@softlayer.com

2008 Press Releases