FutureLink Reaches Accord With Lender and Receives Commitment for $5.0 Million In New Financing

- Senior Credit Facility with Foothill Capital Modified and Company Now

in Compliance with Loan Covenants

- Pequot Private Equity Invests 3.5 Million in a secured Bridge

Financing and Commits to Fund an Additional $1.5 Million by end of

May 2001

- Strategic Realignment and Additional Cost-Cutting Measures Implemented

- Company on Track for EBITDA Breakeven by end of Q4 2001



Apr 23, 2001, 01:00 ET from FutureLink Corp.

    LAKE FOREST, Calif., April 23 /PRNewswire Interactive News Release/ --
 FutureLink Corp. (Nasdaq:   FTRL), a leading provider of integrated solutions,
 hosted application services and one of the first application infrastructure
 companies to provide software as a service, today announced it has entered
 into an amended agreement with Foothill Capital Corporation, a subsidiary of
 Wells Fargo & Company (NYSE:   WFC).  The covenants in the amended agreement
 have been restructured to reflect the current status of the company, which
 brings FutureLink into compliance with Foothill's loan covenants.  Total
 borrowings are available up to $15 million under the amended loan facility,
 based on a percentage of the company's accounts receivable.  Borrowing under
 this facility includes $2 million for our Canadian subsidiary and $1.7 million
 for our subsidiary in the United Kingdom.  The amendment requires the company
 to raise at least $5 million in additional debt or equity financing by May 31,
 2001 and another $5 million by June 30, 2001.
     Concurrent with the modification of its senior credit facility, Pequot
 Private Equity, the venture capital arm of Pequot Capital Management, Inc.,
 invested $3.5 million in a secured bridge financing and committed to invest an
 additional $1.5 million by the end of May 2001.  This bridge loan will satisfy
 the first $5 million debt or equity infusion obligation required by the
 amendment with Foothill, discussed above.  The bridge loan is convertible, at
 the option of the holder, into units consisting of senior subordinated
 convertible promissory notes and warrants to purchase shares of the company's
 common stock.  The convertible notes are, in turn, convertible into shares of
 either common stock of the company or shares of a new series of preferred
 stock that will be convertible into the common stock of the company.
     The company also announced the consolidation of its three data centers in
 North America and a workforce reduction of approximately five percent.  These
 actions in combination with a carefully monitored expense control plan across
 all divisions of the company are expected to result in savings to the company
 of approximately $7.0 million in 2001.
     Howard Taylor, CEO of FutureLink stated, "The changing market environment
 and economic conditions have required an extensive analysis of FutureLink's
 business infrastructure and strategy.  Accordingly, we have elected to
 consolidate our domestic data centers into our Lake Forest, California
 facility, and streamline our marketing and administrative organizations.  We
 feel confident that these actions will be completed smoothly and seamlessly
 for our customers.
     "Reducing operating costs and increasing working capital are two elements
 of my plan to return the company to financial health.  While the recent
 transactions with Foothill Capital and Pequot Private Equity are important
 steps to address our working capital position, we are continuing our efforts
 to raise additional capital and to reduce expenses consistent with the current
 economic situation.  We feel that these actions keep us on track to reach our
 goal of achieving EBITDA breakeven by the end of Q4 2001," continued Taylor.
     "Finally, we remain committed to delivering the highest quality
 information technology solutions to customers.  FutureLink continues to offer
 strong IT solutions, including professional services consulting, hosted
 applications services, systems integration, application deployment, as well as
 hardware and software integration and support," concluded Taylor.
 
     About FutureLink
     FutureLink Corp. (Nasdaq:   FTRL) is a leading provider of integrated
 solutions, hosted application services and one of the first application
 infrastructure companies to provide software as a service.  One of the largest
 and most experienced application service providers (ASPs) of hosted server-
 based solutions worldwide, the company offers a full range of professional
 services that meet business-critical application and infrastructure needs.
 With FutureLink's offerings, customers can precisely manage IT costs and avoid
 expensive and complicated maintenance and support concerns.
     FutureLink delivers its products and services in partnership with leading
 technology companies worldwide including Microsoft, Citrix Systems, Inc.,
 Compaq, EMC Corporation, Cisco Systems, Great Plains, Onyx and others.  A
 founding member of the ASP Industry Consortium, the company markets its
 offerings through a network of channel partners throughout the United States,
 Canada, and the United Kingdom.  For more information on the company and its
 solutions, contact FutureLink toll-free at (877) 216-6001; e-mail
 sales@futurelink.net or visit the FutureLink website at www.futurelink.net.
 
     About Pequot Private Equity
     Pequot Private Equity is the venture capital arm of Pequot Capital
 Management, Inc., a leading investment firm with more than $10 billion under
 management in 23 funds.  Leveraging Pequot Capital's in-depth global research,
 market access and proven lifecycle investment expertise, Pequot Private Equity
 helps early-stage start-ups and emerging companies build a sustainable
 competitive advantage in fast-moving technology markets.  Pequot Private
 Equity invests in young and growing companies pursuing leadership in such
 dynamic market sectors as telecommunications and network infrastructure,
 eBusiness, and technology-enabled healthcare.  Pequot Capital manages
 investments across all stages of a portfolio company's growth, from start-up
 to maturity.  Pequot Capital is 100% employee-owned and has offices in New
 York, Westport, and San Francisco.  For more information, please visit
 www.pequotcap.com.
 
     Except for historical information contained herein, this release contains
 information about future expectations, plans and prospects that may constitute
 forward-looking statements for purposes of the safe harbor provisions of the
 Private Securities Litigation Reform Act of 1995.  Certain statements are
 forward-looking statements within the meaning of the Reform Act.  All of the
 forward-looking statements are based on estimates and assumptions made by the
 company's management, which although believed to be reasonable, are inherently
 uncertain.  No assurance can be given that any of such estimates will be
 realized and actual results may differ materially from those contemplated by
 such forward-looking statements.  Factors that may cause such differences
 include: (I) the inability of the company to raise additional debt or equity
 capital by June 30, 2001 to meet the conditions of its amended senior credit
 facility; (ii) the inability of the company to continue its realignment
 strategy of re-focusing its business, reducing expenses and reducing operating
 losses; (iii) acceptance by customers of the company's service and product
 offerings; and (iv) economic conditions in the markets in which we compete and
 economic conditions generally.  In addition to the risks discussed above, the
 company's business and results of operations are subject to the risks and
 uncertainties described in registration statements and periodic reports filed
 from time to time by the company with the Securities and Exchange Commission.
 For additional information relating to matters specifically discussed in this
 press release, please read the Current Report on Form 8-K filed with the
 Securities and Exchange Commission by the company on April 23, 2001.
 
     For further information please contact Troy Cleland, Investor Relations of
 FutureLink, 888-464-2768, invrel@futurelink.net; or Lillian Armstrong or David
 Barnard, david@lhai-sf.com, of Lippert/Heilshorn & Associates, Inc.,
 415-433-3777.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X26107738
 
 

SOURCE FutureLink Corp.
    LAKE FOREST, Calif., April 23 /PRNewswire Interactive News Release/ --
 FutureLink Corp. (Nasdaq:   FTRL), a leading provider of integrated solutions,
 hosted application services and one of the first application infrastructure
 companies to provide software as a service, today announced it has entered
 into an amended agreement with Foothill Capital Corporation, a subsidiary of
 Wells Fargo & Company (NYSE:   WFC).  The covenants in the amended agreement
 have been restructured to reflect the current status of the company, which
 brings FutureLink into compliance with Foothill's loan covenants.  Total
 borrowings are available up to $15 million under the amended loan facility,
 based on a percentage of the company's accounts receivable.  Borrowing under
 this facility includes $2 million for our Canadian subsidiary and $1.7 million
 for our subsidiary in the United Kingdom.  The amendment requires the company
 to raise at least $5 million in additional debt or equity financing by May 31,
 2001 and another $5 million by June 30, 2001.
     Concurrent with the modification of its senior credit facility, Pequot
 Private Equity, the venture capital arm of Pequot Capital Management, Inc.,
 invested $3.5 million in a secured bridge financing and committed to invest an
 additional $1.5 million by the end of May 2001.  This bridge loan will satisfy
 the first $5 million debt or equity infusion obligation required by the
 amendment with Foothill, discussed above.  The bridge loan is convertible, at
 the option of the holder, into units consisting of senior subordinated
 convertible promissory notes and warrants to purchase shares of the company's
 common stock.  The convertible notes are, in turn, convertible into shares of
 either common stock of the company or shares of a new series of preferred
 stock that will be convertible into the common stock of the company.
     The company also announced the consolidation of its three data centers in
 North America and a workforce reduction of approximately five percent.  These
 actions in combination with a carefully monitored expense control plan across
 all divisions of the company are expected to result in savings to the company
 of approximately $7.0 million in 2001.
     Howard Taylor, CEO of FutureLink stated, "The changing market environment
 and economic conditions have required an extensive analysis of FutureLink's
 business infrastructure and strategy.  Accordingly, we have elected to
 consolidate our domestic data centers into our Lake Forest, California
 facility, and streamline our marketing and administrative organizations.  We
 feel confident that these actions will be completed smoothly and seamlessly
 for our customers.
     "Reducing operating costs and increasing working capital are two elements
 of my plan to return the company to financial health.  While the recent
 transactions with Foothill Capital and Pequot Private Equity are important
 steps to address our working capital position, we are continuing our efforts
 to raise additional capital and to reduce expenses consistent with the current
 economic situation.  We feel that these actions keep us on track to reach our
 goal of achieving EBITDA breakeven by the end of Q4 2001," continued Taylor.
     "Finally, we remain committed to delivering the highest quality
 information technology solutions to customers.  FutureLink continues to offer
 strong IT solutions, including professional services consulting, hosted
 applications services, systems integration, application deployment, as well as
 hardware and software integration and support," concluded Taylor.
 
     About FutureLink
     FutureLink Corp. (Nasdaq:   FTRL) is a leading provider of integrated
 solutions, hosted application services and one of the first application
 infrastructure companies to provide software as a service.  One of the largest
 and most experienced application service providers (ASPs) of hosted server-
 based solutions worldwide, the company offers a full range of professional
 services that meet business-critical application and infrastructure needs.
 With FutureLink's offerings, customers can precisely manage IT costs and avoid
 expensive and complicated maintenance and support concerns.
     FutureLink delivers its products and services in partnership with leading
 technology companies worldwide including Microsoft, Citrix Systems, Inc.,
 Compaq, EMC Corporation, Cisco Systems, Great Plains, Onyx and others.  A
 founding member of the ASP Industry Consortium, the company markets its
 offerings through a network of channel partners throughout the United States,
 Canada, and the United Kingdom.  For more information on the company and its
 solutions, contact FutureLink toll-free at (877) 216-6001; e-mail
 sales@futurelink.net or visit the FutureLink website at www.futurelink.net.
 
     About Pequot Private Equity
     Pequot Private Equity is the venture capital arm of Pequot Capital
 Management, Inc., a leading investment firm with more than $10 billion under
 management in 23 funds.  Leveraging Pequot Capital's in-depth global research,
 market access and proven lifecycle investment expertise, Pequot Private Equity
 helps early-stage start-ups and emerging companies build a sustainable
 competitive advantage in fast-moving technology markets.  Pequot Private
 Equity invests in young and growing companies pursuing leadership in such
 dynamic market sectors as telecommunications and network infrastructure,
 eBusiness, and technology-enabled healthcare.  Pequot Capital manages
 investments across all stages of a portfolio company's growth, from start-up
 to maturity.  Pequot Capital is 100% employee-owned and has offices in New
 York, Westport, and San Francisco.  For more information, please visit
 www.pequotcap.com.
 
     Except for historical information contained herein, this release contains
 information about future expectations, plans and prospects that may constitute
 forward-looking statements for purposes of the safe harbor provisions of the
 Private Securities Litigation Reform Act of 1995.  Certain statements are
 forward-looking statements within the meaning of the Reform Act.  All of the
 forward-looking statements are based on estimates and assumptions made by the
 company's management, which although believed to be reasonable, are inherently
 uncertain.  No assurance can be given that any of such estimates will be
 realized and actual results may differ materially from those contemplated by
 such forward-looking statements.  Factors that may cause such differences
 include: (I) the inability of the company to raise additional debt or equity
 capital by June 30, 2001 to meet the conditions of its amended senior credit
 facility; (ii) the inability of the company to continue its realignment
 strategy of re-focusing its business, reducing expenses and reducing operating
 losses; (iii) acceptance by customers of the company's service and product
 offerings; and (iv) economic conditions in the markets in which we compete and
 economic conditions generally.  In addition to the risks discussed above, the
 company's business and results of operations are subject to the risks and
 uncertainties described in registration statements and periodic reports filed
 from time to time by the company with the Securities and Exchange Commission.
 For additional information relating to matters specifically discussed in this
 press release, please read the Current Report on Form 8-K filed with the
 Securities and Exchange Commission by the company on April 23, 2001.
 
     For further information please contact Troy Cleland, Investor Relations of
 FutureLink, 888-464-2768, invrel@futurelink.net; or Lillian Armstrong or David
 Barnard, david@lhai-sf.com, of Lippert/Heilshorn & Associates, Inc.,
 415-433-3777.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X26107738
 
 SOURCE  FutureLink Corp.