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LMi.net Press Releases

Released Dec. 18, 2001, 7:00 AM EST

LMi.net Saved From Oblivion By Company Founders

Berkeley, California (Business Wire)--Two Berkeley Internet entrepreneurs announced today that they have re-acquired the assets of LMi.net from Denver-based Internet Commerce & Communications (IC&C), returning a leading San Francisco Bay Area Internet Service Provider (ISP) to local ownership and control. Dan Callaway and Gary Morrell purchased the assets of LMi.net in an agreement made in conjunction with an IC&C ruling issued by the Denver federal bankruptcy court on Oct. 23, 2001. The LMi.net assets were transferred on Nov. 13, 2001 to Callaway and Morrell, who originally founded the company in 1992.

"The recent woes of within the cable Internet industry, coupled with the current economic climate, are prompting individuals and businesses alike to look for a more affordable, reliable and friendly way to get on the Internet," said Gary Morrell. "The backbone of the Internet community is local dial-up service, and LMi.net is the dendritic connection," he added.

LMi.net's return to local ownership caps a dramatic yearlong struggle involving LMi.net, IC&C, and deteriorating economic conditions. Confident that gaining the backing of a national ISP would benefit their customers, LMi.net merged with IC&C in September 2000. Like many high-tech ventures at that time, the LMi.net/IC&C merger became troubled. Eventually, business problems caused IC&C to file for Chapter 11 bankruptcy protection on July 31, 2001. By September, IC&C management had terminated most of the LMi.net staff. Soon after, laid-off employees took matters into their own hands. As a testimony to their dedication, they continued to maintain the integrity of the network and customer services remotely. Eleven staff members worked for twelve weeks as unpaid volunteers who aided customers hurt by IC&C's death throes.

LMI.net's customers are grateful for the change in ownership. "We stuck with LMi.net because that kind of commitment to customer service is ingrained in their corporate culture. We're very glad to have them back as our ISP," said long-time customer Mark Stuhr, Director of Information Technology at Nolo.com. "I stayed with the good people at LMi.net through the trenches of business chaos, knowing that this day of triumphant return would soon come," said Oakland entrepreneur Red Contaire. "Thanks to them for fighting the good fight," he added.

Industry analysts find LMi.net's new status encouraging for both Bay Area customers and the Internet industry. "LMi.net combines the personal touch, a deep community spirit, years of experience, and cutting-edge technical skills to create a unique winning attitude that makes customers happy. LMi.net's release from the disintegrating clutches of a woeful giant makes this a good day for Bay Area Internet users and a positive sign for the Internet industry," said Vernon Keenan, industry analyst with Keenan Vision, a San Francisco-based market research firm.

About LMi.net

LMi.net provides a plethora of Internet services for both residential and business customers, including dial-up, e-mail, DSL, Web hosting, co-location, network system integration, and high-speed T1 connectivity. Based in Berkeley, California, LMi.net has been committed to its customers since 1992. LMi.net's Berkeley offices are open to the public at 1700 Martin Luther King Jr. Way. For more information contact LMi.net at www.LMi.net or 1-888-420-0420.