Microsoft and Exodus Team to Accelerate Deployment Of Customers’ Mission-Critical Internet Operations

SANTA CLARA, Calif., and REDMOND, Wash., April 17, 2000 — Exodus Communications TM Inc. (Nasdaq
) and Microsoft Corp. (Nasdaq
“MSFT” ) today announced they are working together to help speed the deployment of customers’ mission-critical Internet operations. This effort between Exodus® and Microsoft is part of a shared vision to provide e-commerce companies with the core network infrastructure and resources they need for acceleration, scalability and growth of new online services.

“Exodus’ skills in providing Web hosting solutions, integrated tightly with Microsoft’s products and the Microsoft® Windows® DNA 2000 platform, creates a powerful combination of expertise and technologies,”
said Thomas Koll, vice president of the Network Solutions Group at Microsoft.
“It is this kind of integrated infrastructure that will enable businesses to quickly and easily deploy end-to-end Web-hosting solutions that fully leverage the capabilities of Microsoft’s leading applications and e-business platform.”

“Together, Microsoft and Exodus offer the right combination of leading e-business platforms and world-class Web-hosting services to help companies quickly launch their Internet operations with a minimum of risk,”
said Ellen M. Hancock, president and CEO of Exodus.
“Moving forward, our relationship with Microsoft will be key in our efforts to meet growing customer demand for Microsoft platforms and provide customers with a one-stop source for the infrastructure, technology and expertise they need to quickly build a presence on the Web.”

Microsoft Windows DNA 2000, with Windows NT® and Windows 2000 at the core, is an e-business platform of choice for top companies. According to Netcraft (November 1999), approximately 40 percent of the Fortune 500 run their sites on Microsoft’s platform.

Exodus, with more than 2,200 customers including more than 40 percent of the top Web sites on the Internet today, has the largest global network of Internet Data Centers (IDCs) and provides premier professional and managed services to ensure optimal performance for customers’ Web sites. Customers using Exodus and Microsoft solutions include BUY.COM Inc., DoubleClick Inc., MSNBC, Inc. and uBid Inc.

Microsoft and Exodus to Collaborate on Rapid Deployment Initiative

Exodus and Microsoft have aligned to commit the technology, products, services and resources required for companies to successfully do business on the Internet. As one of the first joint initiatives, Microsoft will work with Exodus on a Rapid Deployment Initiative (RDI), enabling companies to deploy their e-commerce sites through a single source.

The combination of Exodus’ strategic technology partners and its managed and professional service offerings enable Exodus to assist its customers in deploying Microsoft solutions. Exodus will provide the network infrastructure for preconfigured equipment in multiple IDCs worldwide, along with managed and professional services, and will architect, develop and manage applications on the Windows DNA 2000 platform. Microsoft will provide the platform and applications, including Microsoft Windows NT 4.0 or Windows 2000, as well as Microsoft Cluster Server for Windows NT Enterprise Edition and Windows 2000 Advanced Server.

Microsoft and Exodus will work together to showcase Microsoft platform capabilities in Exodus facilities and speed deployment of sites by working together with key hardware vendors on preconfigured servers. In addition to the RDI, Microsoft and Exodus plan to collaborate on a number of joint marketing programs throughout the next year.

Exodus and Microsoft Spell Success for uBid

uBid, a leading Internet-based business-to-consumer auction site, has already benefited from working with Exodus and Microsoft to ensure high availability, performance and scalability for its site. With a combination of Exodus Web hosting services and Microsoft technology – including Microsoft Windows NT Server, Internet Information Server 5.0 and Microsoft Site Server 3.0 – uBid’s site has easily scaled to support its rapid growth from 25,000 to more than 800,000 users. With more than 3,000 auctions running concurrently around the clock, uBid’s Web servers often serve between 1.2 million and 1.7 million Web pages per day.

“Microsoft and Exodus offered the expertise, technology solutions and support to ensure 24×7 availability for our customers,”
said Adeel Ali, senior manager of Web site architecture for uBid.
“We selected Microsoft’s e-business platform and Exodus’ Web hosting services because together they provide the scalability and performance levels we need to ensure that our site keeps pace with our incredible growth.”

About Exodus Communications

Exodus Communications is a leading provider of complex Internet hosting for enterprises with mission-critical Internet operations. The Company offers sophisticated system and network management solutions, along with technology professional services to provide optimal performance for customers’ Web sites. Through its subsidiary, Service Metrics TM , Exodus is a leading source of Web site performance monitoring and measurement services. Exodus manages its network infrastructure via a worldwide network of Internet Data Centers (IDCs) located in the United States, Europe and Asia Pacific. More information on Exodus can be found at .

About Microsoft

Founded in 1975, Microsoft is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software – any time, any place and on any device.

This press release contains forward-looking statements. Actual results may differ materially due to a number of risks, including the risk that Exodus and Microsoft may not finalize definitive agreements and enter into the proposed alliance. The matters discussed in this press release also involve risks and uncertainties described from time to time in Exodus’ filings with the Securities and Exchange Commission (SEC). In particular, see Other Factors in Exodus’ quarterly and annual reports filed with the SEC. Exodus does not assume any obligation to update the forward-looking information contained in this press release.

Exodus Communications, Exodus and Service Metrics are trademarks for Exodus Communications Inc. and may be registered in certain jurisdictions.

Microsoft, Windows and Windows NT are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

Note to editors: For more information about the Microsoft and Exodus relationship, please visit or . If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web site at on Microsoft’s corporate information pages.

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