AboveNet And Cisco to Deliver Internet Application Hosting Services; Initiative Will Bring World-Class Enterprise Applications Within Reach for Small Businesses.

SAN JOSE, Calif.--(BUSINESS WIRE)--April 26, 1999--

AboveNet Communications Inc., the architect of a global one-hop network that brings together high-bandwidth content sites and ISPs in centralized co-location facilities, today announced that it has been selected by Cisco Systems, Inc. to participate in Cisco's Hosted Application Initiative.

Together, AboveNet and Cisco can enable the outsourcing of hosted applications over the Internet. Cisco's initiative brings together the many components to deliver hosted applications, from application providers, to service providers, and network infrastructure. AboveNet offers a high performance network designed to deliver the scalable and reliable Internet connectivity that is vital to the successful implementation of hosted applications.

Cisco's Hosted Application Initiative, also announced today, creates the framework that enables the delivery of hosted and outsourced application services to small and medium-size businesses. Cisco's initiative is designed to support the emerging market for hosted applications over the Internet, where customers should be able to "rent" a rich and diverse range of enterprise applications rather than incur the high cost of purchasing, installing and maintaining these applications.

As part of the initiative, Cisco is sponsoring a Hosted Applications development lab for the testing of these solutions. AboveNet will be the connectivity partner for the lab, allowing the application and service providers to test their solutions on a high performance network with global Internet connectivity.

AboveNet's high performance network is designed to enable Application Service Providers to deliver the quality of service that their end-users require. AboveNet's 10.5 Gbps of bandwidth and over 257 peering arrangements can provide the scalable and reliable network performance that ASP's need to deliver their business-critical Internet applications.

"These cornerstones can enable small, fast-growing businesses to focus on their core issues of growing their business, not on the information technology necessary to run the company," said Larry Lang, vice president of service provider marketing for Cisco. "AboveNet's high performance Internet architecture can scale in advance of the Application Service Providers' growing connectivity requirements. Together we aim to deliver enterprise-wide applications and excellent performance without the cost of an enterprise investment."

"We believe that our relationship with Cisco should be a magnet for the Application Service Provider market. Packaged application suppliers and ISPs are looking to combine their strengths to address this growing market," said Van Jepson, vice president of marketing for AboveNet. "We think that small and medium sized businesses desire enterprise applications that can be served seamlessly over the Internet, and rented on a monthly basis."

About AboveNet Communications Inc.

AboveNet Communications, Inc. is a leading provider of Internet connectivity and co-location solutions for high bandwidth and business critical Internet applications. AboveNet is the architect of the Internet Service Exchange(TM)(ISX(TM)) -- 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 improve the Internet experience for 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 offerings visit the company's Web site at http://www.above.net. 800/475-2733.

Note to Editors: 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 statements relating to the emergence of a market for hosted applications and the potential benefits of hosted applications, 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 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 registration statement on form S-1 initially filed with the Securities and Exchange Commission on April 7, 1999 and other reports filed from time to time with the Securities Exchange Commission.