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To: Mark Fowler who wrote (117950)	2/16/2001 5:23:49 PM
From: H James Morris	Read Replies (3) \| Respond to of 164684

Mark, this is EXDS's results at the end of last year. This is not what I consider to be a good sign, and this year neither has Wall Street. >For the FY ended 12/31/00, revenues totalled $818.4M, up from $242.1M. Net loss before acct. change totalled $248M, up from $130.3M. Exds reminds me of Amzn. For every 4 twenty dollar bills you give them they'll give a $100 bill in return!

To: Mark Fowler who wrote (117950)	2/16/2001 6:52:43 PM
From: Glenn D. Rudolph	Read Replies (2) \| Respond to of 164684

Mark, I believe EXDS to be top notch too: "Exodus Communications – 6 February 2001 (Continued) 2 EXDS Prices Transaction – Now More Fully Funded Exodus Communications priced an offering yesterday. It consisted of a 13 M common share offering priced at $18.50 and $500 M convertible subordinated notes offering due 2008 with a 5.25% coupon and a conversion price of $22.76. Adjusting our financials for this transaction brings diluted shares outstanding to 579 M. Interest expense of $26 M annually and the new share count bring 2001 EPS from ($0.75) to ($0.74). We believe that this web hosting leader was overly hit by the transaction announcement yesterday. The company trades at 6.2x ‘01E revenue and 5.1x ’04E EBITDA. We expect the financing to bring multiple benefits to Exodus: 1. Strengthen its ability to compete for customers against strong-balance-sheet competitors like IBM and Qwest. 2. Give Exodus expansion flexibility to accelerate construction of data center capacity in the event demand picks up rapidly. 3. Take advantage of strategic opportunities such as acquisition of currently distressed hosting assets. We believe that the raising of additional equity in combination with the convertible debt should allow the company to maintain its current credit rating. Prior to the offering, our projections showed a cash shortfall of approximately $70 M in 2003, so the company faced no short-term funding pressure. With the offering, which took advantage of the current strength in the convertible marketplace, the company has a cash cushion of more than half a billion dollars, giving it unparalleled strategic flexibility over the next 2 years. Highlights From IIS Conference Exodus presented at the Merrill Lynch IIS Conference yesterday. The company highlighted that the integration with the GlobalCenter acquisition is on track. The sales force is fully integrated as are the corporate functions and call center operation. Demand for EXDS’ services remains strong. Capacity constraint issues have been alleviated with the addition of GlobalCenter’s 10 data centers. EXDS now has 40 data centers. In addition, the company indicated it will be raising prices for its hosting services in March 2001."