Press Release: March 29, 2001

WR Hambrecht + Co Initiates Coverage of Exodus Communications (EXDS) with a Neutral Rating

Industry leader primed for long-term power position in $7 billion market

San Francisco, CA, March 29, 2001—WR Hambrecht + Co today initiated research coverage of Exodus Communications (EXDS) with a neutral rating. WR Hambrecht + Co’s eServices analyst Greg Gore cited several near-term challenges for the web hosting bellwether. Nevertheless, Gore is quite optimistic about the company’s future. WR Hambrecht + Co offers all its research reports free and real-time at www.wrhambrecht.com.

“Exodus owns approximately 15 percent of a $7.0 billion US market this year. The company has several virtues, such as strong brand equity, significant scale, many captive clients, and a broad service offering, all of which put Exodus n a power position over the long-term as Internet infrastructure outsourcing proliferates among corporations across the globe,” Gore said.

Gore projects total revenues will reach $1.8 billion in 2001, and $2.9 billion in 2002, up from $818 million in 2000.

Exodus Communications, Inc. is a provider of complex Internet hosting for enterprises with mission-critical Internet operations.