CHI NETWORKS Completes Examination in Conformity with Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls at a Service Organization

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CHI NETWORKS Completes Examination in Conformity with Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls at a Service Organization

CHICAGO, IL, April 14, 2011— Chi Networks, a Chicago-based managed hosting provider, today announced that it has recently completed its examination in conformity with Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls at a Service Organization for the period September 1, 2010 through February 28, 2011 that was performed by an independent accounting and auditing firm. As of June 15, 2011, SSAE 16 replaces the long standing SAS 70 as the U.S. standard for reporting on a business service provider's internal controls. The AICPA permits for early adoption of the standards.

Completion of the SSAE 16 Type II examination indicates that selected Chi Networks processes, procedures and controls have been formally evaluated and tested by an independent accounting and auditing firm. The examination included the company’s controls related to: Information Security, Physical Security, Data Communications, Infrastructure Change Control, Computer Operations - Backup, and Computer Operations - Incident Handling.

SSAE 16 is designated by the U.S. Securities and Exchange Commission (SEC) as an acceptable method for a user entity’s management to obtain assurance about service organization internal controls without conducting additional assessments. In addition, the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 make SSAE 16 reports even more important to the process of reporting on effective internal controls by public companies.

A SSAE 16 examination is widely recognized, because it represents that a service organization has been through an evaluation of their control activities as they relate to an audit of the financial statements of its customers. A Type II report not only includes the service organization's system description, but also includes detailed testing of the design and operating effectiveness of the service organization's controls.