COLO.COM Retains Development Specialists, Inc. to Organize, Manage and Negotiate the Sale of...

Business Editors, High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--June 19, 2001

COLO.COM(SM) is pleased to announce that it has retained Development Specialists, Inc. (DSI) a prominent national/international workout and turnaround firm, to organize, manage and negotiate the

In light of the strong level of interest in the Company and the Bankruptcy Court's recent entry of an order establishing bidding procedures, Development Specialists, Inc. has been retained (subject to Bankruptcy Court approval) to manage, coordinate and complete the sale process in as efficient and timely manner as possible.

The engagement of Development Specialists, Inc. has been supported by both the Debtor and the Counsel for the Official Creditors' Committee. DSI expects to work closely with both groups in order to coordinate the flow of information and to maximize the value of the Company. "We are pleased that we were able to obtain the assistance of an organization with the experience and expertise of DSI. Their participation in the sale process will assure buyers and help us get the best possible result," said David Stanley, chief restructuring officer of COLO.COM.

On May 8, 2001 COLO.COM filed Chapter 11 in the United States Bankruptcy Court Northern District of California. COLO.COM has 21 operational colocation sites located across the United States. These sites total approximately 650,000 gross square feet of rented space with an average site size of 25,000 square feet. With over 170 customers, COLO.COM has monthly recurring revenues of approximately $2.2 million. The average number of Carriers per site is 5.5.

Development Specialists, Inc. was selected due to its national presence, its experience in the industry and its proven ability to manage rapid and complex sales within the context of distressed situations including bankruptcy. DSI's experience and capabilities become particularly imperative given the technological scope of COLO.COM, the large number of interested parties, and the broad geographic dispersion of the sites.

Interested buyers should note that the Due Diligence phase of the process will continue through July 9, 2001 with opening bids, financing proposals and marked-up asset purchase agreements due by 5:00 PM PST. On July 9, 2001. The selection of the lead bidder will be completed on July 11, 2001 and Bankruptcy Court approval of Successful Bid or Bids will be held on August 2, 2001. The closing of any and all transaction(s) is to be completed by August 10, 2001.

Interested buyers are urged to contact any of the following DSI representatives for more information about the Company, the sale process and for dissemination of Due Diligence information: