Microsoft to Work With Jato Communications to Provide ASP Services For Small and Medium-Sized Businesses

REDMOND, Wash., Jan. 24, 2000 — Microsoft Corp. today announced an agreement with Jato Communications Corp., a national provider of high-speed Internet access based on digital subscriber line (DSL) technology, to deploy hosted applications for small and medium-sized businesses. The agreement includes a $10 million investment by Microsoft and complements other investments made by Microsoft in this industry. The investment will enable Jato to offer business customers a convenient and affordable way to obtain leading-edge applications.

As part of the agreement, Jato Communications will use Microsoft products to create a variety of ASP services focused on knowledge management, e-commerce and line-of-business solutions. In addition, Jato will offer Managed PC Services, a bundled solution consisting of a combination of hardware, software and services provided to customers for a monthly fee. These new ASP services and Managed PC Services will be available from Jato in mid- to late 2000.

“Small and medium-sized businesses today demand cost-effective access to leading-edge applications to help them compete and prosper in their markets,”
said Thomas Koll, vice president, Network Solutions Group, Microsoft.
“By deploying these new ASP services on Microsoft platforms via DSL connectivity, Jato is poised to deliver an all-inclusive service that meets all the needs of its customers, now and in the future.”

“Jato was created with a vision for much more than simply supplying high-speed access. Our focus is on helping businesses increase their competitiveness by getting the most out of their DSL connectivity,”
said Jerry Dinsmore, president and CEO of Jato.
“The agreement with Microsoft will be a cornerstone in Jato’s complete application solution package to small and medium-sized business in tier-two markets.”

Jato currently offers service in Denver and Boulder, Colo.; New Mexico; Texas; and Utah, with plans to rapidly expand into 145 markets by the end of 2000.

Founded in 1975, Microsoft (Nasdaq
) is the worldwide leader in software for personal and business computing. The company offers a wide range of products and services designed to empower people through great software — any time, any place and on any device.

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