Palo Alto Internet Exchange Doubles Capacity

Business Wire, June 21, 1999

PALO ALTO, Calif.--(BUSINESS WIRE)--June 21, 1999--

PAIX, the first neutral commercial Internet Exchange, today announced it has completed the expansion of its Palo Alto facility. The Palo Alto expansion, which doubles the capacity of PAIX's original facility, is already pre-sold to capacity.

In a related release today, AboveNet Communications, Inc. (Nasdaq:ABOV) announced that the acquisition of PAIX has been completed, which will enable PAIX to expand its highly successful business model domestically and globally, and ensure it will remain a separate entity to guarantee its neutrality policies.

"The expansion in Palo Alto enables us to give more service providers access to potential peering partners, among other advantages," said Laura Z. Hendriksen, General Manager of PAIX. "Some service providers have been waiting as long as three years to be part of our facility. The Palo Alto expansion is truly our first step toward expanding our business model domestically and globally. We look forward to growing our vision of neutrality on the Internet, offering ISPs choice in our non-competitive environment."

PAIX was started in 1996 and quickly became the most popular Internet Exchange point because of its open business model and neutral policies. As a result of this popularity, the first PAIX facility in Palo Alto quickly filled to capacity and a wait list was established. The fact that the newly opened expansion in Palo Alto is pre-sold is a tribute to PAIX's business model.

PAIX is the only major commercial Internet Exchange (IX) not owned by a telecommunications carrier. ISPs at the PAIX facility can establish peering relationships with other ISPs to route traffic via public or private inter-connects, thereby avoiding congestion on the Internet and providing optimal service. In addition, PAIX is the only major commercial IX to offer ISPs a choice of telecommunications carriers from whom to buy transit for their traffic. This choice gives ISPs the freedom to negotiate the best price for their transit, and to enhance the reliability of their service by using multiple carriers.

About The Palo Alto Internet Exchange

The Palo Alto Internet Exchange, PAIX, was conceived and built by the Network System Laboratory of Digital Equipment Corporation's research group, formerly part of Compaq Computer Corporation, and began operations in July 1996. As a vital part of the Internet infrastructure, PAIX offers high-speed, scalable, reliable co-location, and it serves as a packet switching center for Internet Service Providers. Its facilities are secure, with fault-tolerant power, cooling, fire protection and earthquake resistance. They are accessible 24 hours, seven days a week, 365 days a year, and offer "remote hands" service. PAIX is unique among Internet Exchange (IX) points. It is the only major commercial IX that is neutral and not owned by a telecommunications carrier. This neutrality enables ISPs at PAIX to form public and private peering relationships with each other, and it allows PAIX to offer its customers access to telecommunications services from multiple carriers for zero-mile local loop provisioning. PAIX is owned by AboveNet Communications, Inc. To ensure its neutrality, it is managed as a separate entity with its own management, board of directors and advisory board. PAIX is located in Palo Alto, Calif. For additional information about PAIX, call 650/688-1306

About AboveNet Communications, Inc.

AboveNet Communications, Inc. is a leading provider of Internet connectivity and co-location solutions for high bandwidth and business-critical applications. AboveNet, headquartered in San Jose, Calif., is the architect of the Internet Service Exchange (ISX) -- a world class network that provides co-location services and Internet connectivity for Content Providers, ISPs, and Application Service Providers (ASPs). The AboveNet Global One-Hop Network is designed to deliver fast, scalable and reliable connections to the Internet and improves the Internet experience for all end-users. With its Tier 1 status and ISO 9002 certification, AboveNet is seeking to serve the global community of the Internet.

For more information on AboveNet and its service offering call 800/475-2733 or visit the company's Web site at http://www.above.net