The acquired assets include all of the ownership rights to over 3,200 Web site templates that were jointly owned by Hostopia and GFL. Other assets include exclusive rights to 1,600 additional Web site templates, over 30,000 digital images and a retail and channel software distribution system for templates currently powering the template distribution site Template Rover. Hostopia's purchase price for the assets was CAD $247,000.

"Web site design is increasingly demanded by small- and medium-sized businesses endeavoring to establish an online presence or to improve their existing Web sites," says Paul Engels, chief marketing officer of Hostopia. "Our purchase of Web site template business assets from GFL gives us one of the world's largest inventories of Web site templates and images available to communications service providers for sublicense to their customers. The powerful search and distribution software is an added bonus that will help us distribute Web site templates both to service providers and their SMB customers."

Hostopia recently released its financial results and performance for its fourth quarter and fiscal year-end 2007.