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C I Host 'Fires Shots Across Bow' in Response to Microsoft Claims [19th November 2003]

DALLAS, Nov 19, 2003 /PRNewswire via COMTEX/ -- C I Host, a global leader in Web hosting and Internet infrastructure, today released a confident response to Microsoft's attempts to gain information on 200,000 C I Host clients via an aggressive lawsuit.

Christopher Faulkner, CEO of C I Host, said, "If we were a publicly traded company, the press might call it a hostile takeover on Wall Street. But, we are the largest privately owned hosting company in America. Our clients list is invaluable and it's one of the requests by Microsoft in meetings months ago."

C I Host was served with court documents November 12. The story hit newsstands the next day. A standing gag order in Federal Court may prevent C I Host from detailing legal strategies.

"This lawsuit is totally without merit," Faulkner said. "This could be quite a 'spitting match' when you consider Microsoft has been warming up in an anti-trust case, which they lost to the United States Government. Our legal department is thoroughly investigating Microsoft's allegations, the applicable law and all interpretations of the rules regarding our right to use software it purchased from Microsoft."

C I Host continues to pay licensing fees for use of Microsoft's server products, which comprise roughly 3 percent of its server software requirements. The Microsoft products are designed, licensed, marketed and sold expressly to host applications and solutions that connect via XML Web services, to easily develop, deploy and manage Web services such as those provided by C I Host.

C I Host anticipates filing responsive documents within the guidelines set by The Court, rather than rushing to react to what appear to be baseless allegations.

In an analogy, Faulkner said Microsoft's attempts to take a bigger cut of C I Host's business are similar to "buying a clock radio with a CD player, then later the manufacturer wants to collect fees every time the owner plays a CD."

C I Host vowed to defend itself by whatever means afforded by the law while maintaining "business as usual" service to its customers.

"If this case boils down to who spends the most money in advertising, we have an uphill battle," Faulkner said, "But if we can make this a case of businesses should do the right thing ... we will do well."


D. Kent Pingel, Public Relations Director of C I Host,
+1-888-868-9931, ext. 7006, or kentp@cihost.com




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