On September 26, Exodus® filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States. The filing included the company's domestic operations headquartered in Santa Clara, Calif. and certain other domestic subsidiaries. In conjunction, the company received a commitment for up to $200 million in debtor-in-possession (DIP) financing from GE Capital that will be used to fund post-petition operating expenses and supplier and employee obligations.

Today, Exodus announced it is liquidating four non-operational facilities, one each in Munich and Amsterdam, and two in Dublin. None of the facilities is functioning currently, and no customers or employees are affected by the liquidations.

Today, Exodus also has filed for reorganization of its entity in Amsterdam, which will provide protection from creditors and allow for uninterrupted operations as the company provides service to customers and meets its obligations to customers and employees.

"Exodus remains committed to serving the global marketplace," said L. William Krause, Exodus Chairman and Chief Executive Officer. "Our restructuring actions, both in the U.S. and internationally, are designed to ensure that we have the wherewithal to do that. In assessing our international operations, cost structure and potential for profitable growth, it became clear that we were over-invested in non-operational or under-utilized facilities in certain markets. To continue these entities, or to fail to provide adequate protection to help ensure uninterrupted service to our customers, would be inconsistent with our restructuring plans, and with managing Exodus to profitability."

Exodus has international operations in Frankfurt, London, Paris, Melbourne, Sydney, Hong Kong, Tokyo and Toronto. These operations are unaffected by the plans announced today and continue business as usual.

Focus on Long-Term Profitable Growth

Exodus, as a market leader in complex Web hosting and Internet operations outsourcing services, enjoyed first-mover status in its category, building one of the world's largest privately-managed data networks and locating dozens of state-of-the-art Internet Data Centers (IDCs) in more high-demand locations than any other hosting service provider.

"In the past, we sacrificed profitability in exchange for growth and market share, over-expanding in some areas in advance of demand, and not anticipating the decline as the dot.com bubble burst and the economy weakened," Krause said. "Our top priority now is to serve our existing customers, better than ever, so they entrust us with more of their business. Our goal is to run a profitable business without sacrificing any of the unique value we bring to customers and the marketplace."