Sunnyvale, Calif., February 28, 2002 -- Loudcloud, Inc. (NASDAQ: LDCL),
the leading managed services provider, today announced that it has signed
a definitive agreement to acquire Frontera Corporation, a privately-held
managed services provider located in Los Angeles, California. Frontera's
customers include Pioneer Electronics, Conseco, Wherehouse Music and Coach,
Pursuant to the agreement, Loudcloud will acquire Frontera in an all-stock
transaction. Completion of the transaction is subject to customary closing
conditions, including Frontera stockholder approval and regulatory approvals.
The transaction is expected to close in the second quarter of 2002.
"We think this is an excellent fit for our business, as these customers
can be readily integrated into our environment," said Ben Horowitz,
CEO of Loudcloud. "Loudcloud's strategy is to execute against our
business plan. This acquisition complements it perfectly, because it allows
us to add high quality customers, strengthens Loudcloud's regional presence,
and provides operational synergies."
Loudcloud's management team will discuss the transaction on the company's
2002 fourth quarter and full year results earnings call scheduled for
today, Thursday, February 28, 2002, beginning at 2 p.m. PST. A live audio
version of the conference call is available on the Investor Relations
section of Loudcloud's Web site at http://www.loudcloud.com/ir. A playback
of the conference call can be accessed by dialing 719/457-0820 and entering
pass code #796114 beginning at 7 p.m. PST on February 28 and running until
8 p.m. PST on March 8, 2002.
Loudcloud is the leading managed services provider, offering a complete
solution to enterprise customers for outsourcing global Internet operations.
Loudcloud deploys, manages, secures, scales, and monitors e-business systems
using its unique Opsware technology, which automates functions otherwise
done manually, delivering higher quality, cost savings, and increased
flexibility. Loudcloud manages its systems via a worldwide network of
data centers and Loudcloud Operations Centers located in North America
and Europe. For more information on Loudcloud, please visit our Web site
About Frontera Corporation
Frontera, a full service managed service provider, offers cost-effective,
mission-critical applications via a hosted model. The company's expertise
encompasses the entire application lifecycle - from design and development
through implementation, hosting and management. For more information,
please visit http://www.fronteracorp.com/.