Now stronger than ever IP-Converge Strengthens Business Value with PLDT Group

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1 SPECIAL EDITION SPECIAL EDITION SPECIAL EDITION SPECIAL EDITION SPECIAL EDITION Follow us: Special Edition October 2012 Turn to Centerspread for the IP-Converge Town Hall 2012 feature and photos! Now stronger than ever IP-Converge Strengthens Business Value with PLDT Group PLDT and IP-Converge executives seal the deal. From left to right: Christopher Young, Chief Financial Advisor, PLDT Group; Ernesto R. Alberto, Executive Vice President and Head Enterprise, International & Carrier Business, PLDT/Smart; Napoleon L. Nazareno, President & Chief Executive Officer, PLDT/Smart; Jaime Enrique Y. Gonzalez, President, IP Ventures, Inc.; Roger G. Stone, Deputy Chairman, IP Ventures, Inc.; Reynaldo R. Huergas, President, IP Converge Data Services, Inc. (Photo courtesy of PLDT) IP-Converge: The same Service Excellence with a more powerful Business Engine Around here, we don t look backwards for very long. We keep moving forward, opening new doors and doing new things because we re curious, and curiosity keeps leading us down new paths. -- Walt Disney Wise words from ol Walt. Though it may seem that The Walt Disney Company s line of business and that of IP-Converge cannot be farther apart, they are actually not so distant. While the former is in the business of making people happy as their corporate mission statement says, we on the other hand pledge to do the same for our enterprise clients. IP-Converge s mission is to enable customers to achieve business goals through its value-driven Internet solutions. They say that the essence contained in a Mission Statement is the reason why people get up everyday to go to work. From senior management to staff, this mission is what the men and women of IP-Converge live by. It is this commitment that drives us to continuously seek ways to do things better, implement innovative business practices, and strive towards global service quality standards. And it is this same drive and passion that led the company to this exciting new voyage with The PLDT Group. From the ground, up. 7 years of consistent profitability and service excellence have brought IP-Converge to a level of maturity that built its formidable market reputation in the ICT industry. The company established a new direction in the local data center market when it first opened its mantrap doors in late 2005, by targeting then-untapped markets. By the end of 2007, the company s size had almost doubled and revenue had grown by 330% -- a feat businesses seldom achieve in the first 2 years of operation. The company established a new direction in the local data center market. In fact, according to Enrique Y. Gonzalez, CEO of IP Ventures, Inc. (IPVI), 90% of start up businesses close down on the first year of operations. And of the remaining 10%, half do not survive more than 5 years. That IP-Converge has continued to grow over the years from a line of business that was very unfashionable back then (data center co-location) is clearly a very happy anomaly. Continued on page 2

2 IP Converge Data Services, Inc. The Loop Special Edition, October 2012 IP-Converge: The Same Service Excellence with a more powerful Business Engine Continued from front page The company s growth and equity was further fueled by our decision to provide enterprise cloud computing solutions, during a time when the term cloud computing was not known. Being one of the first purveyors of cloud computing in the country through its strategic alliances with global industry giants Salesforce.com and Google, has given IP-Converge business leadership in this field, and a boost in brand equity as well. 7 years of consistent profitability and service excellence have brought IP-Converge to a level of maturity that built its formidable market reputation in the ICT industry. Customer is King. Over the years, IP-Converge has stood by its boutique approach in dealing with clients, where practically everything is tailor-fit, from initial presentations, to sales proposals, to actual service delivery. Our ability to create custom packages and special product bundles to suit the unique requirements of each customer shows flexibility that traditional providers are often unable to achieve. Because we operate our own data center and network facilities, and maintain high level business relationships with our partners, we are able to be creative with our service offerings and truly bring value to our customers businesses. Account management and customer support are the elements which glue these packages together to provide real world, tangible, and measurable benefits to our clients. The company currently boasts of a 98% average rating over 3-years in its semi-annual customer satisfaction survey. Such reviews are a testament to our commitment to serve, and need to be maintained and even improved continually. This is what IP-Converge strives for everyday. In addition, the company has been honored with Partner of the Year and Customer Satisfaction awards by Salesforce.com in the ASEAN region in 2009 and 2010, respectively. This has helped the 2 companies business partnership grow and flourish since it began in Today, IP-Converge remains to be the first and only Salesforce.com Reseller Cloud Alliance Partner in the Philippines, and only the third in the region. As the company s Quality Policy states, it is committed to maintaining customer satisfaction by consistently providing value-driven solutions and services, and ensures value for its customers through continuous improvement and innovation, and by emphasizing quality in daily operations. This policy, and the company s boutique approach, are major factors in its consistent customer retention rate. Supercharged. If there is one thing that the PLDT Group s acquisition of IP-Converge (through epldt) confirms, it s that we have been recognized as a significant player in the Philippine ICT industry. With synergies from the PLDT link, IP-Converge stands as a much stronger business entity, able to serve more customers better, with highly scalable facilities, a growing product line and increased overall value for its offerings. IP-Converge is now better equipped and capable of addressing more complex customer requirements. With multiple Internet data center facilities and a global network infrastructure within reach, customers have wider options and access to unmatched facilities and network redundancy. The company currently boasts of a 98% average rating over 3-years in its semi-annual customer satisfaction survey. Most important of all, as a premier proponent of cloud computing in the country, IP-Converge gains the leverage to tap into the 700,000+ company MSME market, which is the prime target for enterprise cloud solutions. Continued on page 6 page 2

3 The Loop Special Edition, October 2012 IP Converge Data Services, Inc. epldt acquires IP Converge Data Services, Inc. Diagram of PLDT Group of Companies Courtesy of PLDT Public Affairs October 12, 2012, Manila: Philippine Long Distance Telephone Company ( PLDT ) announced today that its wholly-owned subsidiary, epldt, Inc. ( epldt ) and IP Ventures Inc. ( IPVI ) signed a Sale and Purchase Agreement covering the purchase by epldt of 100% of the issued and outstanding capital stock of IP Converge Data Services, Inc. ( IPCDSI ). IPCDSI owns and operates two (2) Internet data centers in the country and provides enterprises with managed data services and cloud-based business solutions across a wide range of industries including IT solutions providers, gaming companies, e-learning and healthcare. IPCDSI is the country s first and only Salesforce.com Cloud Alliance Partner providing Salesforce CRM licenses and consulting services to businesses. In addition, the company is also the country s premier Google Enterprise Partner, allowing local organizations to adopt a cloud computing mindset and to ThinkOutCloud TM. Our investment in IPCDSI allows us to complete our multi-tiered data center product suite and expand our cloud solutions business, said Napoleon L. Nazareno, President of PLDT. With the combined capacity of our data centers reaching about 2,000 racks, we are strongly positioned to service the growing data center and business solutions With the combined capacity of our data centers reaching about 2,000 racks, we are strongly positioned to service the growing data center and business solutions requirements of both large and mediumsized businesses going forward. -- Napoleon L. Nazareno President & CEO PLDT/SMART requirements of both large and medium-sized businesses going forward, added Nazareno. Combining the reach of the PLDT network, the strength of PLDT VITRO s data infrastructure and IPCDSI s data center footprints and partnerships with major technology and cloud players, PLDT sustains its leadership position as the best in class ICT solutions across the wide spectrum of our enterprise business portfolio, from SMEs to the larger local corporate and multinationals, said Ernesto Alberto, PLDT Executive Vice President and Head of Enterprise and International and Carrier Business. PLDT VITRO s network of Data Centers located at Pasig, Cebu and Subic are purpose built, industrial-strength data centers that leverages on the PLDT Group s robust telecommunications infrastructure, PLDT VITRO provides redundant and high connectivity nationwide and overseas. We see this agreement with PLDT as a major milestone for the Company, PLDT brings tremendous strategic value to the table. With the extensive synergies between PLDT and IPCDSI, IPCDSI will have greater business scalability which will drive growth across all of its business segments, said Enrique Y. Gonzalez, CEO of IPVI. page 3

4 IP-Converge Town Hall IP-Converge employees trooped to the Makati Shangri-La Hotel on Friday, 12th of October for a much-anticipated gathering, the IP-Converge Town Hall This was a special day for all as it marked the official announcement of IP-Converge s venture into broader horizons as it joins the PLDT Group of Companies. Present were all employees of IP Converge Data Services, Inc., save for a few select individuals who kept business operations unhampered. Guests included executives from PLDT/Smart Mr. Napoleon L. Nazareno, President and CEO, and Mr. Ernesto R. Alberto, EVP and Head of Enterprise, International and Carrier Business Groups, as well as senior management personalities from PLDT. Everyone listened intently as the good news was announced by IP-Converge President Reynaldo R. Huergas who also acted as emcee during the event. Then IP-Converge Chairman Roger G. Stone and Deputy Chairman Jaime Enrique Y. Gonzalez were joined by Mr. Nazareno and Mr. Alberto in each giving their own messages of encouragement to Team IPC. IP-Converge and PLDT/Smart executives graze the IP-Converge Town Hall 2012 at the Makati Shangri-La Hotel head last Octover 12, From left to right: Roger G. Stone, Deputy Chairman, IP Ventures, Inc.; Ernesto R. Alberto, Executive Vice President & Head - Enterprise, International & Carrier Business Groups, PLDT/Smart; Jaime Enrique Y. Gonzalez, Chairman, IP Ventures, Inc.; Reynaldo R. Huergas, President, IP Converge Data Services, Inc.; Napoleon L. Nazareno, President & Chief Executive Officer, PLDT/Smart Mr. Stone shared some of his fondest memories of the early days of IP-Converge - from working at the first office in Karrivin Plaza, to the day the very first sale was made, and even stated that seeing IP-Converge mature over the years almost feels as if he raised a child and sent him off to college. Mr. Gonzalez proudly recalled the company s biggest achievements throughout its 7 years and how proud he is of all the contributions of every employee. He led the morning s gathering with the symbolic turnover of IP-Converge to Messrs. Nazareno and Alberto, who both described IP-Converge as a perfect fit with PLDT. The gentlemen then opened the floor to an Open Forum where employees were able to ask questions they had in mind about the coming months and what they could expect. The morning ended with all IP-Converge employees excited about the big news. Everyone looked forward to the bigger opportunities that the acquisition presented and the journey that they were about to embark on with the country s leading telecommunications company.

5 IP Converge Data Services, Inc. The Loop Special Edition, October 2012 IP-Converge: The Same Service... Continued from page 2 Former IP-Converge Chairman Roger G. Stone states that cloud computing will prove to be the biggest influence on the development of IT in the Philippines. He goes on to say that It s not to do with technology but with price-point, and making computing accessible to the entire nation, from the biggest enterprises to the smallest SME. Access to quality systems has been flattened to a level playing field, a small SME can now use the same system as a big multinational, and pay for it on a monthly or as-used basis. With backing from the PLDT Group, IP-Converge will continue to serve its customers and build stronger business relationships With backing from the PLDT Group, IP-Converge will continue to serve its customers and build stronger business relationships, empower organizations by seeking out new and innovative ways to achieve business success in the cloud, and continue to uphold its reputation as a premier data center operator and cloud service provider in the country and the region. This marks the start of a new beginning for IP-Converge, with new challenges, but also with access to more resources and greater corporate muscle to overcome them, says IP-Converge President Reynaldo R. Huergas. These are truly exciting times and we are very eager to serve more customers and do what we do best: empower businesses. By synergizing with the PLDT Group, IP-Converge brings tremendous strategic value to the table in terms of greater business scalability. With new resources available, the company will be able to further enhance its solutions and services to better serve its clients, while providing the same quality and excellence the company is known for in the enterprise. Ernesto R. Alberto, EVP & Head of Enterprise & International Business at PLDT/Smart says that PLDT and IP-Converge make up a tandem of trusted, innovative, and expert partners, that are a perfect fit for each other, being a strategic match with encouraging business fundamentals and vast opportunities for synergy. page 6

6 The Loop Special Edition, October 2012 IP Converge Data Services, Inc. Executive Profiles Mr. Napoleon L. Nazareno President & CEO PLDT / Smart Mr. Nazareno has been a director of the Philippine Long Distance Telephone Company since 1998 and was appointed as President and Chief Executive Officer of the company in He also holds the same position at Smart Communications, Inc. and Connectivity Unlimited Resources Enterprise, Inc. (Cure). He is the Chairman of PLDT Communications and Energy Ventures (PCEV) and holds Director positions at Digitel and Meralco. He also serves as Chairman of several subsidiaries of Smart including Wolfpac, SBI, and I-Contacts. Other directorships include ACeS Philippines where he is also the President, Mabuhay Satellite, PLDT Global, and epldt. We want you to keep doing what you ve been doing. We just want you to do it even better. We want you to stay fast, nimble and flexible, and to remain responsive to your growing roster of clients. My job is to help provide you with the means to grow the business profitably and sustainably. We will certainly do that. Mr. Ernesto R. Alberto Executive Vice President & Head Enterprise, International and Carrier Business Groups PLDT / Smart Mr. Ernesto R. Alberto was appointed as Executive Vice President and Head for PLDT and Smart Enterprise, International and Carrier Business Groups effective January 1, He is responsible for overall revenues from the SME, Corporate, and International market segments. Prior to this appointment he was Senior Vice President and Head for PLDT and Smart Customer Sales and Marketing Group. He sits as Member of PLDT and Smart Group s Senior Management Committee and holds chairmanships (Acasia, ASEAN Telecom Holdings SDN. BHD., Bonifacio Communications Corp., PLDT Clarktel, PLDT Maratelm Inc., PLDT Philcom Corp., PLDT Subictel, Telesat, Inc.) and directorships (epldt, Mabuhay Satellite, NTT Communications Philippines Corp., PLDT Global Corp. Philippines and Malaysia, SBI-Cruztelco3, Smart NTT Multi-Media, Inc.) in some subsidiaries and affiliates of PLDT and Smart. We are glad to note that unlike the other players in this space, IP-Converge s focus is more aligned to the PLDT Group s ICT Roadmap, which is to intensify the push for Data Center and Cloud business. Mr. Jaime Enrique Y. Gonzalez President IP Ventures, Inc. Mr. Roger G. Stone Deputy Chairman IP Ventures, Inc. Mr. Gonzalez is the founder and incorporator of IP Ventures, Inc., and its predecessors Adobo Interactive Inc. and Balikbayanmail.com. He managed the company s growth from start-up to take-off stage to its present structure and size. Mr. Gonzalez also serves as a Director on the board of Retail Specialist Inc., Elite Holdings, Inc. and has held past directorships with Edsamail Philippines, Inc. His undergraduate studies was in Middlebury College and he participated in a Masters in Entrepreneurship course at the Asian Institute of Management. We have a platform to start from which is IP-Converge at around P800 million this year, let s take this to a few billion, that s what we want to do. Mr. Reynaldo R. Huergas President IP Converge Data Services, Inc. Mr. Stone has had more than thirty-five (35) years experience in the areas of marketing, sales, software development and executive management in the IT and telecommunications industries. For a number of years he ran his own consultancy business and leveraged his exposure to European, Asian & Pacific rim, Central and Latin American business markets. He has spent almost 20 years of his career working outside the United Kingdom in Austria, Hong Kong, India, Philippines, Vietnam, Thailand and Costa Rica and has held senior management posts in IT companies including CEO of a UK based plc. He graduated from Loughborough University of Technology in the United Kingdom with an Honours degree in Aero/Automotive Engineering. Together, we are the strongest most capable supplier [of data center and cloud computing services] in the Philippines. You have the opportunity to lead an entire industry, I implore you to grasp it and make this father proud. Mr. Huergas has a track record of more than 20 years in sales, marketing, and business development, with extensive experience in technology, telecommunications, and customer service management in Asia and the US. Prior to joining IPVG, he held executive positions in Globe Telecom, myayala Inc., and Global Data Hub (formerly Ayala Port), and occupied senior management positions in Unisys Corp. in the Philippines, Hong Kong, Singapore, and Indonesia as well. Rene also worked at iasiaworks (Silicon Valley), a venture-funded company in Sunnyvale, California engaged in Internet data center services in the Asia Pacific; as well as a content provider in Burlingame, California. This marks the start of a new beginning for IP-Converge, with new challenges, but also with access to more resources and greater corporate muscle to overcome them. These are truly exciting times and we are very eager to serve more customers and do what we do best: empower businesses. page 7

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