Encompass Holdings' QDS-I HyperBackbone(TM) Joint Venture Reduces High Speed Data Connection Costs by 50% or More

Encompass Holdings, Inc.

(Pink Sheets:ECMH), www.encompassholdings.com, reports today that its' wholly owned subsidiary, Quadrant Data Systems, Inc

.

  (QDS-I) working with its joint venture partner WebPerception Wireless Networks has completed testing and is already presenting their new product offering, 

HyperBackbone

, to new and existing clients.

Joe Berardi, Quadrant's CEO, stated, "We believe that in order to make true virtual computing accessible to small and mid-sized business, we must first substantially cut the cost of secure high speed connectivity.  The typical cost of a conventional DS-3 45 Mb/s connection from our client's offices to the Quadrant data center ranges from $3,000 to $8,000/mo.  For most virtual applications, the higher speed DS-3 connection (compared to a T1 line at 1.54 Mb/s costing upwards of $1000/mo in some areas) is necessary for enhanced productivity.  The target price for our integrated package which includes high speed connectivity at DS-3 speeds will range between $1,500 and $2,500 per month for a typical client.  The important consideration here is that the price of our service includes much more than just the high speed connection, but also a powerful virtual server environment with Quadrant's superior technical management and 24x7 supervision as well."

The HyperBackbone service is an integrated business solution which, along with the direct physical connection, provides a highly secure managed virtual LAN (Local Area Network) connection between the client and the data center as if the data center was actually part of and connected to the client's own private network.  Effectively, HyperBackbone is a dedicated point-to-point (private) high speed connection between the business and a virtual server in Quadrant's data center.

Scott Webber, CEO of Encompass, added, "Quadrant expects to increase monthly recurring revenue by at least $60k/mo within the first year of deployment.  Stated another way, this new revenue stream alone has the potential to significantly increase Quadrant's annual revenue over the next year and will continue to grow month over month. Quadrant (working with current and other potential joint venture partners) has created a faster, more economical, highly secure (not internet connectivity dependent), integrated business computing service sure to increase Encompass shareholder value."

The Encompass Holdings, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6962

Forward-looking statements in this news release are made under the ``Safe Harbor'' provisions of the Private Securities Litigation Reform Act of 1995.  Certain important factors could cause results to differ materially from those anticipated by the forward-looking statements, including the impact of changed economic or business conditions, competition, the success of existing and new product releases and other risk factors inherent in product development and other factors discussed from time to time in reports filed by the company with the Securities and Exchange Commission.

CONTACT:  Encompass Holdings, Inc.
          J. Scott Webber
          [e-mail]
         
          Quadrant Data Systems Inc
          Joseph Berardi
          866-966-9109
          [e-mail]