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Exodus Communications, Inc.
2650 San Tomas Expressway, Santa Clara, CA 95051 * (408) 346-2200

The company is a leading provider of Internet system and network management solutions for enterprises with mission critical Internet operations.

Primary Underwriting Group
ManagerTierPhone
Goldman, Sachs & Co.Lead Manager (212) 902-5959
BT Alex BrownCo-manager (410) 727-1700
Nationsbanc Montgomery Securities, Inc.Co-manager (415) 627-2100

Offering Information
NASNTL:EXDS Internet: SIC 4813
Type of Shares:Common Shares Filing Date:1/16/98
U.S. Shares:4,500,000 Offer Date:3/18/98
Non-U.S. Shares:0 Filing Range:$13.00 - $15.00
Primary Shares:4,500,000 Offer Price:$15.00
Secondary Shares:0 Gross Spread:$1.05
Offering Amount: $63,000,000 Selling:$0.00
Expenses:$1,400,000 Reallowance:$0.10
Post-IPO Shares: -
Employees:220

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Fenwick & West
Bank's Law Firm: Wilson, Sonsini, Goodrich & Rosati
Registrar/Transfer Agent: Boston Equiserve Limited Partnership
Auditor: KPMG Peat Marwick

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
9 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Audited
Income
Balance
Sheet
12/31/96 9/30/97 9/30/96 9/30/97
Revenue:$3.13$7.50$2.02Assets:$24.88
Net Income:-$4.13-$14.57-$2.09Curr Assets:$13.68
EPS:-$0.33-$0.99Liabilities:$15.25
Prior EPS:Curr Liab:$8.87
Cash Flow/Oper:-$3.00-$9.60-$1.51Equity:$9.63
Cash Flow/Fin:$10.17$24.79$3.40Cash:$3.88
Cash Flow/Inv:-$3.62-$15.03-$1.81Working Cap:$4.81

Competition
The market served by the Company is highly competitive. There are few substantial barriers to entry, and the Company expects that it will face additional competition from existing competitors and new market entrants in the future. The principal competitive factors in this market include Internet system engineering expertise, customer service, network capability, reliability, quality of service and scalability, broad geographic presence, brand name, technical expertise and functionality, the variety of services offered, the ability to maintain and expand distribution channels, customer support, price, the timing of introductions of new services, network security, financial resources and conformity with industry standards. There can be no assurance that the Company will have the resources or expertise to compete successfully in the future.

Business Plan
The Company's objective is to become the leading provider of Internet system and network management solutions for enterprises with mission-critical Internet operations. To achieve this objective, the Company's strategy includes the following key elements: (I) Extend Market Leadership, (ii) Focus on Collaborative Management and Internet Technology Services, (iii) Continue Domestic Expansion and Establish Global Presence, (iv) Leverage Expertise to Address New Market Opportunities and (v) Establish Strategic Relationships for Technology and Distribution.

Use of Proceeds
The proceeds from the proposed offering will be used for working capital and general corporate purposes.

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