News Release

Chapter 2 Receives Cisco Powered Network Designation for Application Infrastructure Providers

Mark Validates World-Class Infrastructure and Highlights Provisioning Capabilities for Application Service Providers
Jan 08, 2001

SAN FRANCISCO - January 8, 2001 - Chapter 2, the ASP infrastructure company, today announced it is offering application service providers its secure, "instant-on" infrastructure and operations services in a fully managed environment based on best-in-class technologies from Cisco Systems, Inc. Chapter 2 is one of nine Application Infrastructure Providers (AIPs) to receive the Cisco Powered Network AIP designation.

As a Cisco Powered Network AIP, Chapter 2 provides differentiated service offerings to its ASP customers by creating a high performance, reliable and secure integrated technology infrastructure that is optimized for the management of multiple hosted applications. In addition, Chapter 2 speeds time to market for ASPs by offering a revenue sharing model to build a hosting environment without set up fees, while lowering total operating costs to supply 24x7 monitoring of business applications.

"Cisco shares our view that ASP networks comprise the foundation for delivering mission-critical, core business solutions," said Ritu Raj, CEO of Chapter 2 e-services. "Cisco's high performance, reliable and scalable networking solutions enable us to provide our ASP customers an enhanced back-office backbone and e-services delivery infrastructure that allows them to deliver at the service levels their customers demand."

"As a Cisco Powered Network AIP, Chapter 2 has demonstrated its commitment to building a superior hosting infrastructure to give their customers high quality of service levels," said Eugene Lee, vice president of marketing for the Cisco Internet Software Communications Group. "Through the Cisco Powered Network program, Cisco is raising the bar for the delivery of quality hosted applications services. We are creating an end-to-end, service-driven model that allows each AIP and ASP to focus on its core competencies, delivering best-in-class solutions and services to customers seeking to expand into New World e-business opportunities."

To receive the Cisco Powered Network AIP designation, Chapter 2 underwent a complete assessment of its end-to-end network architecture based on Cisco's data center, Wide Area Network (WAN), "Last Mile" and Customer Premise Equipment (CPE) solutions. Chapter 2's architecture was audited to ensure it was well integrated to achieve a unified and unique platform that addresses the performance and availability requirements of its end-to-end application delivery infrastructure.

Components of Chapter 2's Cisco Powered Network infrastructure include Cisco CSS 11800 series content services switches, Cisco 12000 series Internet routers, Cisco 3600 series modular multiservice routers, and Cisco Catalyst 6500 series switches.

As a Cisco Powered Network designated AIP, Chapter 2 is committed to maintaining high levels of network quality by building its services with Cisco solutions and will be authorized to use the Cisco Powered Network brand logo and have access to joint marketing programs and promotions.

About Chapter 2

Chapter 2 e-services, Inc. is the first company built specifically to provide enterprise-class infrastructure and managed operations services to meet the unique requirements of ASPs. The company's vision extends beyond 'power, pipe and ping' to offer a global platform with Fortune 50-caliber security, stability and scalability. Founded in March 1999, Chapter 2 is based in San Francisco and has secured financing from Convergence Partners, Sand Hill Capital and Hewlett-Packard Company. It capitalizes on solutions from Cisco Systems and has formed strategic partnerships with Exodus and Oracle. Call 415.956.8000; or visit online at

# # #

Chapter 2, the Chapter 2 logo trademarks of Chapter 2 e-services, Inc. All other company or product names may be registered trademarks or trademarks of their respective owners.