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AboveNet Plans Second Major Expansion in San Jose, California for
Third Co-location Facility and Corporate Offices
SAN JOSE, Calif.--(BUSINESS WIRE)--July 7, 1999--AboveNet Communications Inc. (Nasdaq:ABOV), the architect of a global one-hop network that brings together high-bandwidth content sites, ISPs, and
Application Service Providers in centralized co-location facilities, today announced plans to further expand its presence in downtown San Jose, Calif.
The company has signed a letter of intent to lease 159,000 square feet of space in a new building, of which 115,000 square feet will serve as revenue generating co-location facilities, in downtown San Jose. AboveNet will be the lead tenant in the building, which is adjacent to AboveNet's first and second San Jose Internet Service Exchange (ISX) facilities.
AboveNet will have an equity position of approximately 19.9% in the Limited Liability Company (LLC) which will own the entire 300,000 square foot building. The new building, scheduled for occupancy in
the Fall of 2001, will be developed by Forest City Enterprises (NYSE:FCEA) of Cleveland, Ohio, and Kimball Small Properties, a San Jose, Calif. developer.
"The expansion of our West Coast Campus, with a third facility, will allow us to meet the anticipated demand for AboveNet's superior Internet connectivity and co-location services we are experiencing from companies in the Western U.S. and in the Asia Pacific region," said Warren J. Kaplan, President and Chief Operating Officer of AboveNet.
AboveNet's ISX facilities serve as the international hubs for AboveNet's growing global presence. The West Coast campus, in San Jose, Calif., serves U.S. and Asia Pacific clients. Currently, about 30% of Asian Internet traffic comes through AboveNet's San Jose ISX.
"We are very excited to be working from the ground up with the developers on this project to design a building perfectly suited for our stringent, world-class, co-location facilities," said Stephen Belomy, Executive Vice President of AboveNet. "This project allows us complete control over the design and construction, as well as the timing of the opening of the phases of the project to meet customer
demand for space."
AboveNet's Global "One-Hop" Network AboveNet's network model enables it to offer improved connectivity and network performance to its
clients. At each of AboveNet's ISXs, content and service providers connect to each other in a LAN environment and then directly connect to the rest of the Internet through an extensive network of more
than 257 private and public peering agreements with the leading ISPs and backbone providers worldwide. This architecture can reduce the multiple network hops information often takes to reach its final destination on the Internet, and can allow AboveNet to keep the information on its network intact until it can be delivered as close as possible to its final destination. The resulting "one-hop" network is designed to be highly redundant and to deliver superior network performance.
AboveNet seeks to further ensure the performance of its network by providing its clients access to more than 10.5 Gbps of bandwidth on demand -- the most bandwidth available at any co-location facility. AboveNet guarantees 100% headroom on its network so that its clients will have the bandwidth they need as they grow.
AboveNet's ISO 9002 Certification ISO 9002 certification assures that AboveNet, as well as its suppliers and technology partners, adhere
to the quality management and quality assurance standards set by ISO -- a worldwide federation of national standards bodies from more than 130 countries. The certification is particularly important to the transmission of e-commerce, streaming multimedia, and Internet telephony, for which delays and high error rates can result in unacceptable transmission qualities.
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 above.net.
AboveNet, Internet Service Exchange, ISX and AboveNet Global One-Hop Network are trademarks of AboveNet Communications, Inc. All other company or brand names may be trademarks of the respective companies with which they are associated.
The statements contained in this press release that are not purely historical, such as AboveNet's plans to lease additional co-location space and the anticipated demand for this space, are forward looking statements within the meaning of section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the company's expectations, beliefs, hopes, intention or strategies regarding the future. AboveNet's actual results and the timing of certain events may differ materially from the results discussed in the forward looking statement. Factors that could cause or contribute to such differences include risks related to AboveNet's services, including network scalability and Internet connectivity, the ability to maintain and increase peering relationships, and intense
competition, the ability of the providers of hosted application services to obtain and retain customers and satisfactory levels of service, and other factors and risks discussed in the company's
SEC reports, including it's Quarterly Reports, and form 10-Q for the three months ended March 31,1999.
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