RagingWire Completes SAS 70 Type II Audit to Assure Regulated Companies Meet Compliance Legislation

SACRAMENTO, California
December 5, 2005

RagingWire Enterprise Solutions, Inc. (RES), an IT outsourcing provider of infrastructure, software as a service and on demand solutions, today announced it has successfully completed a service auditor’s review, commonly known as a SAS 70 Type II audit, of its general controls supporting the data center hosting services. The audit was performed by a nationally recognized independent auditing firm.

Widely accepted as the industry standard for service providers performing transactional activities for heavily regulated companies, the SAS 70 Type II audit independently assesses and reports how well a service provider effectively manages the internal controls to support the requirements outlined in the Sarbanes-Oxley legislation, including Control Environment, Physical Security, Environmental Protection, Computer Operations, Information Security, and Data Communications. RES initiated the SAS 70 Type II audit to ensure its Fortune 1000 and Fortune 500 clients that its operational practices and hosting services have met the latest federal requirements.

“As the complexity of federal regulations grows, who a company selects as its service provider could impact the success or failure of its compliance efforts,” said Scott Price, president of auditing and accounting firm, SAS 70 Solutions. “Service providers that have completed the SAS 70 Type II audit provide their clients assurance that the operating effectiveness of key business operations was audited.”

Under the Sarbanes-Oxley compliance, regulated companies are held accountable for assessing and reporting the effectiveness of their internal controls over financial reporting, and the operational controls of outsourced processes, which impact the regulated companies’ financial statements. Furthermore, Section 404 of Sarbanes-Oxley requires CEOs and CFOs of public companies to report these findings in their corporate Securities and Exchange Commission filings. Any problems or weaknesses found in a third-party’s internal controls could adversely affect investors’ confidence levels.

“Providing quality IT services that meet the industry’s highest standards and best practices is the core focus of RES,” said Yatish Mishra, RES’ president and chief technology officer. “Successfully completing the SAS 70 Type II audit affirms RES’ commitment to maintain sufficient and effective internal controls over the business processes entrusted to us by our clients. In doing so, RES provides the assurance they need to meet the changing regulatory environment.”

SAS 70 is an acronym for the American Institute of Certified Public Accountants(AICPA) Statement on Auditing Standard (SAS) No. 70, titled “Reports on the Processing of Transactions by Service Organizations”. SAS No. 70 defines the professional standards used by a service auditor to assess the internal controls of a service organization and issue a service auditor’s report.

About RagingWire

RagingWire Enterprise Solutions (RES) provides highly custom and flexible IT solutions that accommodate the business needs of large, data-intensive enterprise companies. RES operates a reliable and secure Enterprise Data CenterSM facility engineered to provide "five nines" (99.999%) availability and highly scalable power and cooling in conjunction with managed IT solutions that maintain Fortune 1000 and Fortune 500 companies mission-critical back-office IT systems. RES enables its clients to reduce their operating costs, speed time to market, and focus on their core competencies. For more information about RES, access www.ragingwire.com.