Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : AboveNet Communications, Inc. (ABOV) -- Ignore unavailable to you. Want to Upgrade?

To: Richard D. Brennan who wrote (642)	5/24/1999 6:50:00 AM
From: AugustWest	Read Replies (1) \| Respond to of 835

AboveNet Communications Acquires Palo Alto Internet Exchange (PAIX) SAN JOSE, Calif.--(BUSINESS WIRE)--May 24, 1999--AboveNet Communications, Inc. (Nasdaq:ABOV - news), a company dedicated to improving the Internet experience for end-users, Internet Service Providers (ISPs) and content providers, today announced it signed a definitive agreement to acquire the assets and liabilities of the Palo Alto Internet Exchange (PAIX) from Compaq Computer Corporation for approximately $75 million, consisting of $70 million in cash plus an agreement to provide certain ongoing services to Compaq. The closing of the transaction is subject to customary conditions, including the receipt of certain regulatory approvals. The performance and reliability problems that are increasingly present on the Internet are a result of the facilities, business policies and connectivity at the major Internet Exchange (IX) points. The IXs are where Internet Service Providers (ISPs) come to exchange Internet traffic with other ISPs. There are many IXs throughout the world, with the better known ones being the Metropolitan Area Exchanges (MAEs) East and West, and the Network Access Points. The majority of the IXs are owned by telecommunications companies (telcos) and are operated with closed business policies which require the ISPs buy lines only from the telco that owns the IX and also discourages the use direct connections between ISPs within the IX. These closed business policies are a result of the telco's primary motivation of selling lines and not improving the performance and reliability of the Internet. The Palo Alto Internet Exchange (PAIX) is the only commercial IX not owned by a telco, and that operates with an open business policy that offers a choice of carriers as well as encourages direct connections between ISPs within the IX. Since its inception, PAIX has been known as the best place for ISPs to exchange Internet traffic because of its neutral policies and superior facilities and services. PAIX will be operated as a separate corporation, retain its current management team and have its own board of directors. PAIX will invite reputable industry leaders to be on an advisory board that oversees the continuation of PAIX's policies of neutrality. These policies of neutrality were designed to ensure PAIX's reputation of providing the best facilities and services on the Internet. ''Neutrality means that we can offer ISPs a wide choice of carriers, that we encourage direct connections between ISPs and that we do not offer services that would compete with our customers,'' said Laura Z. Hendriksen, General Manager of PAIX. ''By offering the best facilities and facility management services to all ISPs, PAIX will be improving the performance and reliability of the Internet. The ultimate benefactor of this acquisition is the Internet and the multitude of users and businesses wanting to take advantage of the fastest growing medium in our history for communication and commerce''. ''PAIX is unique among the major U.S. Internet Exchange points in that it is the first and only one to have open business policies and neutral peering policies. The new meaning of PAIX will be the -- Public Access Internet Exchange,'' stated Sherman Tuan, Chairman and Chief Executive Officer at AboveNet. ''The open business policies of PAIX are designed to ensure its adaptability to meet the ever changing needs of the ISPs.'' About PAIX PAIX was conceived and built by the Network System Laboratory of Digital Equipment Corporation's research group, now part of Compaq, and began operations in July 1996. 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, California, is the architect of the Internet Service Exchange (ISX) -- a world class network that provides co-location services and Internet connectivity for Content Providers and ISPs. The AboveNet Global One-Hop Network(TM) 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 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. Factors that could cause or contribute to such differences include risks related to integration of the PAIX acquisition, the Company's services, including network scalability and Internet connectivity, the ability to maintain and increase peering relationships, intense competition, and other factors and risks discussed in the company's registration statement on form S-1, filed with the Securities and Exchange Commission on April 7, 1999 and other reports filed from time to time with the Securities Exchange Commission.