1&1 offers four shared hosting packages including the Beginner, Home, Business and Developer packages. The Home package, for example, will now be $45 for one year with no extra costs for up to two personal domains. The Business package includes three domains for $90 for a full year term.

"This is a tremendous offer especially for a small or medium sized business," says Andreas Gauger, chairman of 1&1 Internet. "So many businesses think that they can't afford a world-class Web site. We're here to show them that it's possible, inexpensive and will enable any business to compete in their marketplace."

The discount is only valid for the first year, and beginning with the second year of subscription, normal fees will be charged. The offer is good from July 31 until September 30.