RAGINGWIRE SUCCESSFULLY COMPLETES SAS 70 AUDIT

SACRAMENTO, California (October 26, 2004) - RagingWire Enterprise Solutions, Inc. (RES), an IT outsourcing provider, today announced it has successfully completed the SAS 70 audit. SAS 70 is an internationally recognized auditing standard developed by the American Institute of Certified Public Accountants (AICPA) No. 70. The SAS 70 audit focuses on the internal controls related to the hosted data center and the services it provides for its clients. It is widely considered a key requirement for companies performing data center functions for security-sensitive and regulated organizations.

"The SAS 70 audit provides third-party assurance as to the controls placed in operation at a service organization," said Scott Price, president of auditing and accounting firm, SAS 70 Solutions. "The controls under review are those outsourced to a third party and impact their client‚s internal control environment. Stakeholders may place more reliance on the controls at a service organization who has undergone a SAS 70 audit than a company that has not. By utilizing a firm specializing in performing SAS 70 audits, RagingWire's controls are measured against best practice standards to provide feedback for continuous improvement of its services and controls."

Managed service companies like RES employ the SAS 70 audit to disclose their internal controls and processes to their clients. The scope of the SAS 70 inspection includes the five components of internal control: Control Environment, Risk Assessment, Control Activities, Information and Communication Systems, and Monitoring.

"We are excited to have successfully completed the SAS 70 audit, which is critical to fulfilling our large Fortune 1000 and Fortune 500 public clients‚ compliance requirements," said Yatish Mishra, president and CTO of RES. "Providing a high level of quality assurance gives our clients complete confidence in knowing that our managed services and collocation solutions have met the industry's highest standards and best practices."

About RagingWire
RagingWire Enterprise Solutions, Inc. (RES) provides highly custom and flexible managed services and world-class IT infrastructure solutions that accommodate the business needs of large, data-intensive enterprise companies. RES operates a reliable and secure Enterprise Data CenterSM facility that offers "five nines" (99.999%) availability and highly scalable power and cooling in conjunction with managed IT solutions that maintain Fortune 1000 companies‚ mission-critical, back-office IT systems and applications. RES enables its clients to reduce their operating costs, speed time to market, and focus on their core competencies.
For more information about RES, access www.ragingwire.com.

About SAS 70 Solutions
SAS 70 Solutions, Inc. was founded in 2002 by former "Big 4" accounting firm executives and SAS 70 audit experts. SAS 70 Solutions is the first-ever national firm to specialize in SAS 70 audit services. Their mission statement is simple: We provide our clients with the best attributes of the "Big 4" professional services firms while eliminating the non-customer service oriented components.

Introducing The Hub

On September 22, 2004 at 10:00 AM, Rudin Management Company, Inc.; one of New York City’s largest privately owned real estate companies, held their first ever Open House and Technology Forum at 32 Avenue of the Americas to promote and introduce the creation of The Hub at 32 Sixth (www.thehubat32sixth.com ) . The Hub at 32 Sixth is a Rudin owned and managed co-location and data facility located on the 24th floor of the Avenue of the Americas building that boasts a growing number of communication providers and users ranging from telecommunications carriers, wireless providers, ISPs and entertainment, broadcasting and financial service firms. Rudin purchased the 1.15 million square foot building from ATT in 1999.

The purpose of the forum was to bring the tenants of Rudin Management’s 18 commercial buildings and technology tenants of The Hub together under one roof to share, learn, network and debate the latest technologies, services and network applications that are being launched in the New York metropolitan area and, more specifically, from The Hub. At the inaugural event two panels were developed to discuss true next generation Broadband technologies. The first panel, populated by executives of Gigabeam, T-Mobile and Towerstream, provided for a discussion of fixed and mobile wireless services and technology. Gigabeam is the nation’s first provider of a licensed, fixed, Broadband service capable of speeds up to 10 Gbps. T-Mobile as the World’s first and largest mobile wireless company to deploy a carrier class 802.11b (Wi-Fi) wireless Broadband network. Towerstream who has been successfully deploying fixed, unlicensed, wireless networks throughout the New York Metropolitan area and around the United States since 2000 and is a leader in the 802.16 WIMAX standard development. The second panel occupied by top-level executives of NYSERNet, Keyspan Communications and Qwest discussed new products and networking enhancements over traditional terrestrial networks. NYSERNet who is spearheading the efforts of building Internet II, a network that is delivering next-generation Internet services to New York State’s research and education community. Qwest, the 4th largest long distance provider in the US, announced the launch of OneFlexTM, their VoIP service, to New York City and the surrounding metropolitan area. And Keyspan Communications presented their latest network transport product: the Managed Wavelength Service. This service will supply exceptional provisioning intervals while providing transport options from OC-3 up to 10 Gig E throughout Manhattan, Long Island, Brooklyn and Jersey City. Each panel offered highly spirited and informative discourse.

“The main goal of the event was to bring our commercial tenants face to face with our telecom/technology tenants and engage them in a dialogue about what our customers want and what providers have to offer,” says John J. Gilbert III, COO, Rudin Management. “Rudin has spent a lot of time and energy in creating infrastructure within and between our properties and it was time to bring everyone together. This type of meeting is the beginning of a very powerful discussion that benefits all parties. We are confident that real value for carriers as well as tenants will be created through these getogethers.” The Open House and Technology Forum is a new approach for Rudin Management in showcasing the co-location facility, emerging technologies and the customers who desire to use these tools. The Rudin philosophy behind the forum is to go beyond a tradeshow venue by providing a medium that allows commercial tenants to challenge and confer on competing technologies and to tour The Hub facilities with the actual providers present. The tour included an examination of the co-location space, “meet-me” area and rooftop, providing the full visual experience of the endless wireless capabilities this building has to offer.

32 Avenue of the Americas has a rich history in telecommunications. It is known within the industry as the “cross roads of communication” as the once AT&T Long Lines Building. Rudin Management, long recognized as supporters of advancements in technology, continue to build on the vision of this building with its creation of The Hub. Bill Rudin who was also present at this event made the observation that “The Hub is a virtual meet point of optical networks, but the human meet point is right here in this room and you can feel the energy.”

For more information about The Hub please contact Julia Di Dominicus at jdidomin@rudin.com or call 212-407-2758.

Verizon's Spring Break-In

By Michael R. Zimmerman and Shelley Solheim
eWeek
October 4, 2004

According to published carrier reports filed with the Federal Communications Commission, a variety of things, from natural disasters to careless maintenance, can result in disruptive and costly network outages. But sometimes, as in the case of a Verizon Communications Inc. central office last spring, the cause can be deliberate.

Read the full story on eWeek.com

Peer 1 Network Signs Definitive Agreement to Acquire ServerBeach

Dedicated Server Company will increase Peer 1’s Monthly Recurring Revenue by 57%

VANCOUVER, BRITISH COLUMBIA – October 5, 2004 – Peer 1 Network Enterprises, Inc (TSX-V:PIX), a leading provider of high performance Internet bandwidth and server co-location facilities, announced today that its 100% owned subsidiary, P1 Acquisition, Ltd. (“P1”) has signed a Definitive Agreement to acquire all of the operating assets of San Antonio, Texas-based ServerBeach, Ltd, a leader in the unmanaged dedicated server business.

P1 has agreed to purchase all of ServerBeach’s assets, contracts and business, including a data center located in San Antonio, Texas and over 4,200 dedicated servers. The net effect of this highly accretive acquisition will be to increase Peer 1’s monthly recurring revenue by 57% to over $CDN 2 million. Management expects the two businesses to be quickly integrated, without major cost. The ServerBeach business will be operated as a wholly owned subsidiary of Peer 1. The staff and management of ServerBeach will be offered employment at P1.

The purchase price is comprised of $US 7.5 million in cash, a management services contract , and other bandwidth services. After integration costs and savings, the acquisition of ServerBeach is expected to add over $CDN 5 Million incremental EBITDA in the year ending June 2006, the first full year of operations as an integrated company. Peer 1 has arranged Bridge Financing for the cash portion of the purchase price from a Company related to one of its Directors on commercially reasonable terms and due on December 31, 2005 with certain renewal provisions thereafter. The loan carries an interest rate of 6% per annum through December 31, 2005 and thereafter at 15% per annum.

Final terms are subject to regulatory approval, and final closing is expected to take place within 15 days.

“The highly accretive acquisition of ServerBeach is a realization of Peer 1 management’s strategy of accelerated growth through acquisitions,” said Geoffrey Hampson, Peer 1 Network’s President and CEO. “Peer 1 has been seeking acquisitions that increase the footprint of the Peer 1 network, that increase the co-location capacity, and that offer a wider range of choices to Peer 1 customers. Because we are leveraging our existing co-location and network infrastructure, there will be very little incremental cost associated with the future growth of this new business.”

P1 will retain ServerBeach operations in San Antonio, Texas. “We are very pleased to be able to integrate ServerBeach’s proven team of very experienced and capable people who have rapidly built a major player in this fast growing sector,” said Rick Hingson, Peer 1’s Vice President of Operations. “The dedicated server business is a natural extension of the infrastructure that Peer 1 already provides and we see many opportunities to leverage existing customer relations within both companies. Peer 1’s culture of devotion to the customer and focus on our core business has gained us an excellent and unparalleled reputation that will mesh very well with the culture and management style of ServerBeach. This acquisition represents a great way for Peer 1 to continue to grow geographically, in product offering and financially.”

Peer 1 Network was established in 1999 in Vancouver, BC in response to a demand in the market for high-performance Internet bandwidth and quality data center infrastructure. The company began to grow when the rest of the market was contracting which allowed Peer 1 to adopt a strategy based on acquiring infrastructure at a fraction of the actual cost and of being able to offer an industry leading 100% network uptime guarantee. Peer 1 has grown organically into one of North America’s leading players in the IP network marketplace. Peer 1’s acquisition of ServerBeach is a first step in management’s plan to continue to grow both organically and through acquiring growth companies with a history of positive and growing EBITDA.

ServerBeach was launched in response to a real need exhibited in the marketplace for unmanaged dedicated servers. By listening to the customers and developing new applications to serve their ever-changing needs, ServerBeach has become a leading dedicated server provider. ServerBeach has developed internal automation products that help to speed up provisioning, billing and tracking and give the customer unprecedented control of their servers and applications. These systems will be implemented through Peer 1 and form a key strategic element for future growth and differentiation.

In many respects ServerBeach and Peer 1 Network share complementary business models. “Both companies have developed products in response to the needs of tech-savvy businesses and individuals that require high quality performance, but want to manage their own applications and hardware,” said Mark Teolis, Peer 1’s Chief Technology Officer. “That’s what makes this acquisition a great fit. Peer 1’s management is dedicated to ensuring that ServerBeach is as well-equipped as Peer 1 to deliver the quality and service its customers demand. ServerBeach customers will soon become acquainted with Peer 1’s high-performance network and customer service as we move our network into the ServerBeach facilities and dedicate more resources to client support.”

“The fit between the ServerBeach and Peer 1 product families is outstanding,” said Richard Yoo, ServerBeach’s founder. “With Peer 1’s and ServerBeach’s corporate cultures being so closely aligned, the combination will be a win for the ServerBeach team and their customers. Peer 1 is acquiring a great company that will contribute to producing a strong market force in the dedicated server, co-location and bandwidth markets.”

About ServerBeach

ServerBeach offers discount dedicated servers to the technology hobbyist. Built on solid hardware, a reliable network and burstable bandwidth, ServerBeach provides Linux and Microsoft users with a low-cost dedicated server, complete with a full set of developer’s tools.

Visit the ServerBeach at www.serverbeach.com or call 800.741.9939.