Interland Reports Option Grants

Interland (NASDAQ:INLD), a leading online marketing
services company for small and medium-sized businesses, announced on
August 1, 2005 the hiring of Jeffrey M. Stibel as its CEO effective
August 11, 2005. As disclosed in the Company's Form 8-K filed August
3, 2005, Mr. Stibel received inducement options to acquire 1.7 million
shares of Interland common stock at $2.29 per share. These options
generally vest over three years at the rate of 47,222 shares per
month. The option has an eight-year term.
   As disclosed in the Form 8-K filed August 3, 2005, the Company
also hired Mr. Peter Delgrosso to serve as Vice President of
Corporation Communications. Mr. Delgrosso received inducement options
to acquire 200,000 shares of Interland common stock of $2.29 per
share. These options generally vest over three years at the rate of
5,555 shares per month. The option has an eight-year term.
   Each of these option grants was issued in reliance on Nasdaq
Market Place Rule 4350(i)(l)(A)(iv) as inducements to their entering
into employment with the Company. For further details about the
options, please refer to the Company's Form 8-K filed August 3, 2005,
and the exhibits thereto, which include the option agreements.

   About Interland

   Interland, Inc. (NASDAQ: INLD) is a leading online services and
Web hosting company dedicated to helping small and medium-sized
businesses achieve success by providing the knowledge, services and
tools to build, manage and promote businesses online. Interland offers
a wide selection of online services, including standardized Web
hosting, ecommerce, application hosting, website development,
marketing and optimization tools. For more information about
Interland, please visit www.interland.com.