ISERV FORMS NEW ENTITY TO INCREASE PACE, DIVERSITY OF ACQUISITIONS

Iserv Technology Group Seeking Complementary Tech, Telco Businesses

GRAND RAPIDS, MI - October 13, 2004 - The Iserv Co. today announced the formation of the Iserv Technology Group, (ITG) an entity established to identify and acquire complementary technology companies across the Midwest.

ITG ( www.iservgroup.com) will focus on finding and acquiring established companies, primarily in technology and telecommunications, which require additional resources to realize their full potential. Independently funded through West Michigan investors, ITG will primarily seek organizations with mature business models capable of benefiting from Iserv's expertise in turnaround management, technology and customer service.

Iserv CEO Vic Shepherd will oversee the operation of ITG, along with Iserv Chief Financial Officer Mike Grinzinger and Iserv Vice President of Operations Jim Loznak. Shepherd, with Iserv since 2001, has extensive experience in acquisitions and organizational "turnarounds", having done more than 20 transactions during his career. Prior to joining Iserv, Shepherd was CEO of Chicago-based Systems Software Associates, part of the international acquisition and management company the Gores Technology Group (GTG)

Led by Shepherd, Grinzinger and Loznak, Iserv has acquired six internet service providers (ISPs) across Michigan during the past two years, while increasing the Company's number of subscribers, improving its financial performance and establishing a new focus on overall customer satisfaction.

"The formation of ITG represents an effort to broaden our organization's acquisition strategy and provide the means to execute that strategy in an intentional, highly focused manner," Shepherd said. "Over the past several years, the Iserv Company has worked hard to develop outstanding management, a responsive customer support infrastructure and world-class technical resources. We believe these elements can help complementary companies achieve new levels of success and are actively seeking the right acquisitions at the right terms."

Mike Grinzinger emphasized that ITG would be focused on the acquisition of established businesses capable of generating cash flow through complementary operations.

"This is a not a venture fund or a start-up support mechanism. ITG's role is to find and execute acquisitions that make good financial sense for our owners and investors," he said.

Jim Loznak added that the ITG team's experience in integrating acquisitions and optimizing technology-based businesses makes the company unique in its ability to quickly create new value from existing operations.

"We have the experience and the resources to take a technology company that may have peaked on its own and find creative ways to take that company to a new level of growth and performance," Loznak said. "Technical capabilities, market knowledge and a commitment to the customer all have to come together, and we can help make it happen within the right environment."

About ITG

The Iserv Technology Group (ITG) was formed to focus on finding and acquiring established companies, primarily in technology and telecommunications, which require additional resources to realize their full potential. Independently funded by West Michigan investors, ITG primarily seeks Midwest organizations with mature business models capable of benefiting from the Company's unique expertise in turn-around management, technology and customer service. For more information, visit www.iservtechgroup.com.