Exodus Takes $637 Million Stake in Content Distributor

In a move to enhance performance for content-driven Web sites, Exodus Communications, Inc. Wednesday
invested $637.5 million in Mirror
Image Internet Inc.
, a provider of content distribution services.

Mirror Image, a subsidiary of Xcelera.com
Inc.
(XLA),
offers distribution of content to Internet service providers, content
providers, enterprises, and end-users. It will have its Content Access Point
architecture deployed throughout Exodus’ network. The two companies will also combine their resources to create
instaContent Global Distribution Service, designed to deliver content
reliably and securely.

“The combination of Exodus’ network, services and Internet Data Centers, and
Mirror Image’s technology is intended to create the fastest, most scalable
and reliable platform for global distribution of Internet content,” said
Ellen M. Hancock, Exodus president and chief executive officer.
“Customers will be able to benefit from a distinctive performance advantage
that is not
available elsewhere.”

Exodus has been investing its capital into a variety of companies recently
in an attempt to broaden its services. In February, the company purchased
the professional services division of Network-1 Security Solutions Inc. to
beef up its security offerings. Also, its Japanese subsidiary, teamed up
with Nomura Research Institute Ltd. to
amplify its Web hosting services in Japan.

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