QUESTAR ANNOUNCES NEW COMPANY TO MANAGE
E-BUSINESS SERVICES AND DATA CENTERS

Acquisitions and contribution of Questar data center facilities create Consonus, Inc., a premium provider of end-to-end Web e-business application services

SALT LAKE CITY — Questar Corp. today announced the creation of a new electronic-business subsidiary, Consonus, Inc., following the acquisition of a Portland, Ore., company with the same name.

On June 1, 2000, Questar acquired Consonus of Portland, a premier provider of e-business consulting, application development and managed hosting services.  On the same day, Consonus merged resources with several smaller e-business companies recently acquired by Questar and assumed ownership of Questar's ultrasecure e-Business Data Centers (EDCs).  Consonus will provide e-business networking, develop Web systems, and operate EDCs that deliver associated Web hosting and network services.

"We retained the name Consonus for the new company because it already has an excellent reputation for quality and service in the Web application services provider (ASP) industry," said Clyde Heiner, president and CEO of Consonus, and former senior vice president of Questar. "The creation of Consonus supports Questar's strategy to expand its activities in the fastgrowing e-business services and ASP markets.  The merged Consonus organization provides enterprise, middlemarket and ‘dotcom' companies with solutions for building and operating Web e-business systems in Class A, ultrasecure IT facilities." 

"The acquisition of Consonus of Oregon achieves a key milestone in Questar's strategy to expand in the ASP market," said R. Don Cash, chairman, president and chief executive officer of Questar Corp. "With its innovative model for delivering tailored, highquality ebusiness services and its impressive list of clients and partners, Consonus provides us with an immediate presence in this fastpaced and highgrowth market." 

Heiner said a competitive advantage for the new organization is the premium quality of its EDCs. Questar built its flagship EDC three years ago in Salt Lake City.  The 22,000-square-foot building is designed to absorb the seismic energy that would be delivered by a 7.5magnitude earthquake.  This Class A data center has redundant broadband connectivity, uninterruptible backup power supplies, state-of-the-art fire suppression systems, multiple security systems, and 24/7 application monitoring and support services.  Consonus is now building a second EDC south of Salt Lake City, to be open for business later this year.  The strategic plan includes construction of additional EDCs in underserved markets throughout the United States.

"We will aggressively expand data center infrastructure and client services through Questar's investment in Consonus," said Steven Eror, chief financial officer of Consonus, Inc.  "In addition, we are focusing on rapidly developing relationships with strategic business partners and financial investors who see this business as a very attractive opportunity."

Ron Melnyk, Consonus of Oregon cofounder and senior vice president of ASP services for the new company, said the new organization is equipped to provide clients with services that address every aspect of an ebusiness initiative. "Consonus of Oregon is very excited about the prospects for growth afforded by Questar's acquisition of our company," said Melnyk.  "At Consonus, we've always emphasized the importance of a comprehensive ebusiness solution, from strategic consulting to application development to the infrastructure and expertise supporting it all.  With the backing of Questar, we not only operate that ebusiness infrastructure, but own the highest quality data centers. We now have the unquestionable resources to expand our capacity to maintain superior levels of service, accessibility, and response to our clients."

Consonus is distinguished by its unique Application Care@ approach to managed ebusiness hosting, with 24hour technical support staff.  The staff provides software application diagnostics and issue resolution in addition to supporting the hardware and systems software of a Web site.  The company offers a facilitiesbased onestop solution for organizations seeking e-business services.

Questar's acquisition of Consonus builds on a strategic partnership established in 1999.  At that time, Consonus expanded its data center operations to include services from Questar's EDC in Salt Lake City. Other recent acquisitions by Questar that are merging resources and service offerings into the new company also have prior relationships with the EDC or directly with Consonus of Oregon for network consulting, network integration, and systems procurement. Questar Corp.'s decision to create the new Consonus ebusiness application services company reflects the success of these underlying relationships and recognition of the synergy of functions that each organization contributes to the newly formed business unit. 

The new company's management team consists of Clyde Heiner, president and chief executive officer; Steve Eror, chief financial officer; Darwin Melnyk, chief technology officer; R. Donn Hilton, vice president and general counsel; John Wehmann, senior vice president of corporate development; Ron Melnyk, senior vice president ASP services; Brian Bacigalupo, senior vice president marketing and sales; John Tanner, vice president networking and network operating center services; Craig Bacigalupo, vice president data center services; Ron Manseth, vice president solution services; David Fawson, vice president of acquisitions; Bryan Boam, general manager data center operations and John White, division controller.

Conifer Investments, LLC acted as financial advisor to Questar Corp. in this transaction.

About Questar
Questar Corp. (NYSE:STR) is a diversified energy services company with $2.3 billion in assets distributed between regulated and nonregulated activities. Through subsidiaries, it engages in energy development and production; gas gathering and processing; wholesale gas, electricity and liquids trading; interstate gas transmission and storage; retail gas distribution and energy services; and information systems and technologies.

About Consonus, Inc.
Consonus, headquartered in Salt Lake City, provides integrated services that enable middlemarket to enterpriselevel companies to manage the life cycles of their strategic e-business initiatives.  Consonus helps its clients overcome the complexity of conducting business online with a consultative approach and e-business application suite used to develop rapidlydeployed, highperformance e-business systems.  In addition to ebusiness application development, Consonus service offerings include: comprehensive managed hosting services in secure data centers with firsttier Internet backbone connectivity and total Application Care@ ; monitoring and maintenance; Web cluster hardware and software design and implementation; and engineering services for complete integration of voice, video and data networks. 

This news release contains some forwardlooking statements about the future operations and expectations of Questar Corp. and its subsidiaries. These statements were made in good faith, and the corporation believes they are reasonable representations of the company's expected performance at this time. Actual results may vary from stated expectations due to a variety of factors.

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