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Exodus and Nomura Research Institute, Inc. Intend to Team to Offer Internet Hosting Solutions to the Japanese
Market

SANTA CLARA, Calif., Jan 18, 2000 (BUSINESS WIRE) --


Planned Alliance Positions Exodus to Meet
Increasing Customer Demand for Web Hosting Services in Japan

Exodus Communications(TM), Inc. (NASDAQ: EXDS), a leader in complex Internet hosting and managed
services, today announced that Exodus Communications, K.K., formerly Global OnLine Japan, K.K. and a
wholly-owned subsidiary of Exodus(R), intends to enter into an alliance with Nomura Research
Institute, Ltd. (NRI), one of Japan`s leading system integrators. Under the agreement contemplated by
a letter of intent entered into by the parties, Exodus and NRI intend to work together to provide
customers with NRI`s Internet consulting services and Exodus` Web hosting, network connectivity and
related managed services. In addition, the proposed alliance will enable Exodus to expand its Tokyo
Internet Data Center (IDC).

Industry Leaders Cooperate in Strategic Alliance

Under the proposed alliance, Exodus and NRI plan to offer Internet solutions to support customers`
mission-critical Internet operations, including consulting, Web site architecture and development,
implementation support and Web hosting services in Exodus` state-of-the-art IDCs. NRI offers
expertise in a range of Internet consulting services, including application development, Intranet
development, installation support and security. The two companies intend to cooperate in joint
marketing efforts and NRI plans to resell Exodus` services. "It is a great pleasure to work with NRI
to expand our presence in Japan and offer services to ensure optimal performance and reliability of
our customers` mission-critical Internet operations," said Ellen M. Hancock, President and CEO of
Exodus. "NRI`s talented staff and Internet consulting expertise will enhance Exodus` entry into the
Japanese market." "The Internet hosting market is of utmost importance to the development of the
Internet in Japan," said Mr. Shozo Hashimoto, President and CEO of NRI. "When we were searching for a
partner to assist our clients with entry into this technology area, we selected the leader and we are
very enthusiastic about the prospects of working with Exodus to enhance the Internet in Japan."

Tokyo Internet Data Center

To support growing customer demand for Internet hosting services, Exodus Communications, K.K. plans
to purchase a 157,000 square foot building in Tokyo. The new facility will house Exodus` Internet
Data Center (IDC), as well as the Company`s Japanese corporate headquarters. Exodus plans to merge
its current facility in Tokyo into the new IDC, which it plans to occupy by the first half of 2000.
The new site is part of the continued expansion of Exodus` network of world-class Web hosting
facilities in major metropolitan areas to support complex Internet hosting worldwide. "Exodus
Communications, K.K. intends to be the leading provider of Internet hosting solutions in Japan," said
Roger Boisvert, President and Representative Director of Exodus Communications, K.K. "The proposed
alliance with NRI should position Exodus to support the growing needs of the Japanese market for
comprehensive Internet hosting services." Exodus Communications, K.K. has an extensive network within
Japan that currently includes network exchange points with 38 Japanese ISPs.

Exodus Announces Rapid Deployment Initiative Partners in Japan

In addition to the alliance with NRI, Exodus Communications, K.K. today also announced it is
extending its Rapid Deployment Initiative (RDI) to Japan. The Exodus RDI is designed to enable
companies to quickly initiate, manage and expand their Web operations and global businesses through a
single source -- Exodus. Through this initiative, Exodus and its partners intend to provide customers
with the platforms, hardware, software, applications and services they need to quickly build and
maintain their Internet operations. In Japan, Compaq Computer Corporation, Hewlett Packard Japan
Ltd., and Sun Microsystems, K.K. plan to provide the equivalent service of Exodus` RDI in the US, in
conjunction with NRI`s system implementation.

About Nomura Research Institute

Nomura Research Institute, Ltd. (NRI) is the leading Think Tank and System Integrator in Japan.
Established in 1965 as Japan`s first private think tank, NRI currently operates nine offices
worldwide with approximately 2,900 employees and sales of more than US $1,500,000,000 (US$1=JPY 100).
NRI employs a global information network, detailed research and analysis, and overall judgement to
observe economic, industrial and social change and offer its customers "Best Solutions" to optimize
their business development strategies. More information on NRI can be found at www.nri.co.jp

About Exodus Communications

Exodus Communications(TM) 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(R) 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 www.exodus.net.

Forward Looking Statements

This press release contains forward-looking statements. Actual results may differ materially due to a
number of risks, including the risk that Exodus and NRI may not finalize definitive agreements and
enter into the proposed alliance and the risk that Exodus may not be able to purchase the building it
intends to use as an Internet Data Center. 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. Note to Editors: Exodus Communications and Exodus are trademarks of
Exodus Communications, Inc., and Service Metrics is a trademark of Service Metrics, Inc. and may be
registered in certain jurisdictions. All other trademarks in this document are the property of their
respective owners.

Copyright (C) 2000 Business Wire. All rights reserved.

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