Web Site Presentation

INLD 4Q03 EARNINGS ANNOUNCEMENT


EXHIBITS


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October 21, 2003


[COMPANY LOGO]


INTERLAND REPORTS RECORD RESULTS


PRIMARY FINANCIAL GOAL ACHIEVED: COMPANY GENERATES $3.6 MILLION POSITIVE EBITDA1 FOR FOURTH QUARTER 2003


The company reported revenues of $27.3 million for the quarter and $106.6 million for fiscal year 2003, an increase of 4.9 percent over fiscal year 2002. Net loss from continuing operations was $5.9 million for the quarter equating to a loss of $0.40 per share on 14.8 million shares outstanding. Including discontinued operations, net loss for the quarter was $0.6 million, or $0.04 per share. Net loss for the fiscal year was $173.9 million, or $11.86 per share. The company reported its first quarter of positive EBITDA1 from continuing operations with $3.6 million in EBITDA for the period.


See full earnings release at: www.interland.com


1 EBITDA from continuing operations is a non-GAAP financial measure that is most directly comparable to the GAAP financial measure of Net Loss from continuing operations. Reconciliations of the non-GAAP measure to both Net Loss from continuing operations, as well as to Net Cash Used in Operating Activities, are attached.


2


QUARTERLY INCOME STATEMENTS


Interland Consolidated
Q1 2003 Q2 2003 Q3 2003 Q4 2003
------------------ ------------------- --------------------- ------------------


Revenue - Shared Hosting 17,130,216 15,977,637 15,607,718 16,505,188 Revenue - Dedicated Hosting 9,552,153 9,159,842 9,186,048 9,292,070 Revenue - Other Hosting 270,353 207,448 133,067 291,114 Revenue - Other Non-Hosting 330,357 768,992 970,943 1,254,751
------------------ ------------------- --------------------- ------------------ TOTAL REVENUE 27,283,080 26,113,920 25,897,776 27,343,123


Costs Detail:


Data and Connectivity Costs 3,055,890 4,074,151 1,830,449 1,328,163 Facility Costs 1,605,889 1,702,116 2,049,961 1,621,467 Marketing and Advertising Costs (External) 2,452,898 2,518,039 3,467,090 2,381,358 Network Operating Costs 3,271,636 2,743,574 3,233,820 1,901,598


Employee Related Costs - Network Operations 2,508,404 2,514,167 2,581,392 2,119,196 Employee Related Costs - Sales and Marketing 2,295,784 2,408,703 2,125,028 2,164,864 Employee Related Costs - Technical Support 3,132,608 3,342,607 3,434,073 3,636,363 Employee Related Costs - General and
Administrative 6,159,989 6,650,226 6,970,293 5,244,407
------------------ ------------------- --------------------- ------------------
Total Employee Related Costs 14,096,786 14,915,704 15,110,787 13,164,829


Merger, Integration and Restructuring Costs (140,714) 4,107,554 2,204,113 (604,812) Bad Debt Expense 2,046,417 1,769,936 1,974,784 1,543,855 Other 3,294,063 3,137,300 107,898,804 2,723,603


(Gain) Loss on Asset Disposal 0 21,481 1,556,842 (293,681)
------------------ ------------------- --------------------- ------------------ TOTAL COSTS 29,682,865 34,989,855 139,326,650 23,766,379


EBITDA (2,399,785) (8,875,935) (113,428,874) 3,576,743


Depreciation and Amortization 12,180,530 13,214,798 22,194,317 9,118,124 Discontinued Operations 33,880 280,664 167,191 (5,393,151) Interest (Income) Expense (200,526) 49,884 7 ...