To: Desertrat who wrote (4102 ) 1/18/1999 12:42:00 AM From: Mark[ox5] Respond to of 19700
PRODUCTS AND SERVICES Products and services of the Company's majority-owned subsidiaries as of July 31, 1998 include the following: Investment and Development -------------------------- NaviSite Internet Services Corporation NaviSite provides the high-performance, Internet outsourcing solutions of Web hosting and server management, ensuring that a customer's Web presence, database and applications are continuously operational. In order to save money and receive better performance, security, and availability, companies are outsourcing their Internet server management. NaviSite's carrier-class data centers, private transit Internet connectivity strategy, advanced monitoring tools, backup power and complete data and network redundancy ensures that customers or end-users are receiving quality performance and security. NaviSite monitors and supports the network and its customers' servers around the clock, and provides detailed reports to its customers regarding performance, availability, and activity related to their Web sites. NaviSite's SiteHarbor Web hosting and application solutions provide customers with the benefits of NaviSite's infrastructure as well as service, expertise, and customization to fit a customer's unique needs. The SiteHarbor product line consists of SiteHarbor CL, SiteHarbor MC, SiteHarbor EM and SiteHarbor Application Solutions. SiteHarbor CL, NaviSite's co-location Web hosting solution, is a customer-managed option for companies who wish to maintain full responsibility for the monitoring and maintenance of their servers while utilizing the benefits of NaviSite's infrastructure. SiteHarbor MC is a managed co-location Web hosting solution. This option allows customers to maintain a role in their server maintenance, but also receive management support from NaviSite. SiteHarbor EM provides enhanced server management capabilities and offers customers the NaviSite support 3 and Web server management tailored to the customer's unique needs. SiteHarbor Application Solutions provide hosting and management solutions for e-commerce, content management and ad-serving applications. In addition to the SiteHarbor product line, NaviSite's NaviNet division focuses on building high quality, cost-effective wholesale dial-up networking services based on the NaviNet technology platform. NaviNet's product, GeoDial SP, enables ISPs to rapidly expand into new markets and offer the latest dial-up technologies to their customers, at a low per-user monthly cost for unlimited Internet access. GeoDial SP aggregates multiple calling areas, deploys advanced switch bypass technology to eliminate busy signals due to port congestion, and relies on private transit Internet connectivity to bypass congested public peering points. In addition to building a unique technology solution, NaviNet is partnering with CLECs, a strategy that enables the offering of data services with minimal investment. By offering quality, low cost wholesale dial-up networking services for ISPs, GeoDial SP allows ISPs to focus on end user acquisition, technical support, and value-added services. ISPs can more easily grow and retain their subscriber base in an increasingly competitive Internet service marketplace. In September, 1998 the Company announced that NaviSite's NaviNet division would be spun-off as a separate wholly-owned subsidiary of CMG. NaviSite has data centers in Andover, MA and Scotts Valley, CA and currently plans to expand its Andover data center in the near future. NaviSite currently generates revenues primarily from monthly per-server management fees, installation fees and bandwidth usage charges. In addition to other customers, NaviSite manages the Internet servers for many of CMG's Internet and interactive
media affiliates, including Planet Direct, Engage, Mother Nature and Parable.