Hostopia launches fax-to-email service

MISSISSAUGA, ON and FT. LAUDERDALE, FL - Hostopia.com, Inc. (TSX: H) today announced the launch of a private labeled, wholesale fax-to-email service that telecoms and other service providers can sell to their small business customers. Also known as "IP fax" in the communications services market, fax-to-email services allow a user to send or receive facsimile messages from their computer - typically within their preferred email application such as Microsoft Outlook. The benefit to this is having the ability to send or receive fax messages without the expense and inconvenience of owning a physical fax machine and additional phone line.

"Fax-to email is in high demand as a business service with annual growth of over 25% according to a prominent category study published by Davidson Consulting," says Paul D. Engels, Hostopia's Chief Marketing Officer. "Our wholesale customers such as telecoms and broadband companies are eager to offer these services to their SME customers," he adds.

Hostopia's fax-to-email service is available to telecoms and other communications providers on a wholesale basis. It can be branded by the telecom and sold as a standalone service or as part of a bundle of services, such as web hosting and business email. It can be billed to end users directly by the telecom or sold on a referral model where Hostopia performs the billing and end-user support.

"Service providers who sell this service will enjoy the benefit of patent protection due to our license with j2 Global Communications, the leader in IP fax technology," says Engels.

"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."

According to Hostopia - citing the Davidson Consulting report on IP fax services - demand for fax-to-email is driven largely by small enterprises that rely heavily on faxing in day-to-day business. This demand includes the need to be mobile while receiving important documents via email on a PDA or smart phone device, such as RIM's Blackberry.

Hostopia's fax-to-email service has suggested retail prices for service providers starting at US$9.99 per month, which allows for 300 send or received pages. Hostopia's wholesale model is structured to provide at least 40% gross margin to the telecom service provider who retails the service.