Hostopia Licenses Digital Fax Patents From j2 Global

HostReview.com
Friday, August 3, 2007; 05:58 AM

j2 Global Communications, Inc. (NASDAQ:JCOM), the provider of outsourced, value-added messaging and communication services, and Hostopia.com Inc. (TSX:H), a leading provider of web services that enable small- and medium-sized businesses to establish and maintain an Internet presence, today announced that they have entered into a patent license agreement. Under the agreement Hostopia receives a non-exclusive, worldwide license to j2 Global's digital fax patent portfolio in exchange for an upfront payment plus ongoing quarterly royalty payments. The patent license agreement has a 10 year term, which may be renewed thereafter.

"j2 Global licenses its patents to leading companies worldwide. We are especially delighted to add Hostopia as a licensee because they have a demonstrated ability to successfully sell IP-based business solutions on a large scale basis to telecommunications and Internet service providers," said Jeffrey D. Adelman, Vice President and General Counsel of j2 Global. "This agreement is a great opportunity to expand the market for digital faxing services by delivering these patented solutions into the hands of a leading service provider."

"Hostopia seeks to provide communications providers with the means to offer their small business customers a high-performance fax-to-email service," said Hostopia CEO & COO Colin Campbell. "In order to deliver a superior service we sought out the global leader in patented digital faxing technology and formed an agreement that we believe will enable us to compete on a superior footing with respect to features and price while giving our service provider customers the intellectual property assurances they need to offer these services."

Founded in 1995, j2 Global Communications, Inc. provides outsourced, value-added messaging and communications services to individuals and businesses around the world. j2 Global's network spans greater than 2,800 cities in 40 countries on five continents. The Company offers faxing and voicemail solutions, document management solutions, Web-initiated conference calling, and unified-messaging and communications services. j2 Global markets its services principally under the brand names eFax(R), j2(R), jConnect(R), JFAX(TM), eFax Corporate(R), Onebox(R), Electric Mail(R), jBlast(R), eFax Broadcast(TM), eVoice(R), PaperMaster(R), Consensus(TM), M4 Internet(R) and Protofax(R). As of December 31, 2006, j2 Global had achieved 11 consecutive fiscal years of revenue growth and 5 consecutive fiscal years of positive and growing operating earnings. For more information about j2 Global, please visit www.j2global.com.

Hostopia is a leading provider of web services that enable small- and medium-sized businesses to establish and maintain an Internet presence. The company's customers are communication services providers, including telecommunication carriers, cable companies, internet service providers, domain registrars, and web hosting service providers. Hostopia's customers purchase their web services on a wholesale basis and resell these services under their own brands to small- and medium-sized businesses. The company provides customers with the technology, infrastructure, and support services to enable them to offer web services, while saving them research and development as well as capital and operating costs typically associated with the design, development, and delivery of web services.