Exodus Communications Inc. today announced the appointment of L. William Krause as chairman and CEO, succeeding Ellen M. Hancock, who has resigned.

"During Ellen's tenure, Exodus enjoyed phenomenal growth and was able to build a world-class data center infrastructure and managed services offerings, benefiting greatly from her technology expertise. The focus now is to implement an operating plan that reflects the realities of a tough economic environment," Krause stated. "We agreed with Ellen that it's time to transition the leadership of the company as it maneuvers through challenging times."

Krause has been a member of the Exodus Board of Directors since June 2000. He retired as chairman of 3Com Corporation in 1993, and is currently president of LWK Ventures, a private investment company in Silicon Valley.

Krause has also served as president, CEO and a director of Storm Technology Inc., a digital imaging company. He previously held various general management and executive positions at Hewlett-Packard Company. Krause currently serves on the board of directors of Pinnacle Systems Inc., Packeteer Inc. and Sybase Inc.

The troubled managed hosting provider recently revealed that it was entertaining the idea of a takeover. That revelation came on the heels of the unexpected departure of three out of ten of the company's board members. During its quarterly earnings reporting July, Exodus reported a loss of $583.4 million, or $1.05 a share, compared with a loss of $51.8 million, or 13 cents a share, a year ago.

Exodus was trading at a 52-week low of $0.74 at midday, down precipitously from a 52-week high of $69.