Exodus, AT&T Solutions Collaborate for Merrill Lynch Online MLOL; MLOL Now Hosted in the Exodus Internet Data Center Network.

SANTA CLARA, Calif. and BASKING RIDGE, N.J.--(BUSINESS WIRE)-- Oct. 18, 1999--

Exodus Communications(TM), Inc. (NASDAQ:EXDS), a leader in complex Internet hosting and managed services, and AT&T (NYSE:T) today announced that Merrill Lynch & Co., Inc., one of the world's leading financial management and advisory companies, has chosen Exodus(TM) and AT&T Solutions to provide state-of-the art hosting facilities and professional and network management services for Merrill Lynch's Web-based investment offerings.

Merrill Lynch's Web offerings can be accessed through the firm's home page at http://www.ml.com and currently include Merrill Lynch OnLine (MLOL), a financial resource site for clients and the investing public, and askmerrill.com, which showcases the firm's global research capabilities.

Merrill Lynch has selected Exodus to design, host and manage the complex array of Internet servers needed to support a comprehensive suite of services, such as process order entry for all products, sophisticated financial and "scenario" planning and tracking tools, and extensive market information. Exodus is working together with AT&T Solutions, the AT&T networking professional services subsidiary, which already provides and manages Merrill Lynch's standard global networking capabilities.

"Exodus' experience, resources and skills will enable Merrill Lynch to focus on aggressively developing our MLOL offering without worrying about the reliability of our Internet platform," said John McKinley, Merrill Lynch senior vice president and chief technology officer. "Exodus' professional expertise in hosting extensive Internet operations and the e-business networking prowess of AT&T Solutions are significant advantages that will support our mission-critical Internet operations."

According to Forrester Research, 9.7 million households will be trading online by 2003, and will have $3 trillion in Internet brokerage accounts, or approximately one fifth of all retail investment assets.(1)

"Merrill Lynch is a significant addition to Exodus' roster of blue-chip customers, which number over 1,300 enterprise and Internet companies," said Ellen M. Hancock, president and CEO of Exodus. "We are pleased to be working with AT&T Solutions in support of Merrill Lynch as it launches a new era in online investing. It is our goal to deliver reliability and scalability to MLOL, both of which are vital to accommodate the growth of its online community."

Exodus provides premier professional and managed services to ensure optimal performance for customers' Web sites and other functions. Designed for 24 x 7 operations, Exodus Internet Data Centers (IDCs) are a virtual extension of the corporate enterprise. The IDCs enable companies to reduce ongoing network operating costs and take control to ensure availability of mission-critical Internet systems management expertise, which is crucial for providing reliable Internet services and quickly expanding Internet capabilities. Exodus' international network offers Internet backbone performance and best-of-breed Internet services at significant cost savings.

"We are a virtual extension of the Merrill Lynch team, providing design, engineering, implementation and management of their global networking capabilities," said Rick Roscitt, president and CEO of AT&T Solutions. "Merrill Lynch's evolution to e-business, and our collaboration with Exodus, is a natural extension of our relationship."

AT&T Solutions provides seamless solutions that maximize the competitive advantage of networking-based electronic commerce applications for global clients such as Merrill Lynch. It uses state-of-the-art tools and processes to operate and manage voice, data, VPNs, video and Internet/intranet services, including local and wide area networks, PBXs, voice-processing systems, and voice and data terminals.

About Merrill Lynch

Merrill Lynch is one of the world's leading financial management and advisory companies with offices in 43 countries and total client assets exceeding $1.5 trillion. Merrill Lynch's model for personal financial services combines its world-class advisory and research capabilities with a powerful technology platform. The result is the broadest range of choices and price options for accessing information, advice and guidance, financial planning, cash management, investment, asset and liability management, and eCommerce services. As an investment bank, it is the top global underwriter and market maker of debt and equity securities and a leading strategic advisor to corporations, governments, institutions, and individuals worldwide. Through Merrill Lynch Asset Management and Mercury Asset Management the company is one of the world's largest managers of financial assets. For more information, visit Merrill Lynch's web site at http://www.ml.com.

About AT&T / AT&T Solutions Group

AT&T (www.att.com) is among the world's premier voice and data communications company, serving more than 80 million customers, including consumers, businesses and government. With annual revenues of more than $53 billion and 151,000 employees, AT&T provides services to customers worldwide. Backed by the research and development capabilities of AT&T Labs, the company runs the world's largest, most sophisticated communications network and has the largest digital wireless network in North America. The company is a leading supplier of data and Internet services for businesses and offers outsourcing, consulting and networking-integration to large businesses. It is also the nation's largest direct Internet access service for consumers. Through its recent cable acquisitions, AT&T will bring its bundle of broadband video, voice and data services to customers throughout the United States. Internationally, the AT&T/BT Global Venture - recently named Concert - will serve the communications needs of multinational companies and international carriers worldwide.

The AT&T Solutions Group (www.attsolutions.com) includes AT&T Global Network Services, which AT&T is in the process of acquiring, plus the existing AT&T Solutions outsourcing and professional services business, including AT&T's internal information technology and communications capabilities around the world.

About Exodus Communications

Exodus Communications is a leading provider of Internet system, network management solutions and technology professional services for enterprises with mission-critical Internet operations. Exodus manages Internet Web sites and its network infrastructure from 15 Internet Data Centers (IDCs) located in the United States and Europe. Exodus currently has IDCs located in the Boston, Chicago, London, Los Angeles (2), New York (2), Seattle (2), Silicon Valley (4) and Washington, D.C. (2) metropolitan areas. Exodus has announced the planned addition of four additional IDCs and three international server hosting sites by the end of 1999, bringing the total number of Exodus sites to 22 worldwide. More information on Exodus can be found at www.exodus.net.

Forward Looking Statements

Statements made in this press release that state Exodus' intentions, beliefs, expectations, or predictions for the future are forward-looking statements. It is important to note that Exodus' actual results could differ materially from those projected in such forward-looking statements. Information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in Exodus' filings with the U.S. Securities and Exchange Commission (SEC). Copies of these filings may be obtained by contacting Exodus or the SEC.

Note to Editors: Exodus Communications and Exodus are trademarks for Exodus Communications, Inc., and may be registered in certain jurisdictions. All other trademarks set forth in this document are the property of their respective owners.

(1) St. Louis Post-Dispatch July 4, 1999