Exodus and GTE Internetworking Agree to Increase Internet Traffic Exchanges. Agreement Adds Interconnections and Increases Throughout Capacity by 50%.

SANTA CLARA, Calif. and DALLAS, Texas, - Exodus Communications, Inc. (NASDAQ: EXDS), and GTE Internetworking, a division of GTE Corp. (NYSE: GTE), today announced that they have reached an agreement to help ensure that their customers continue to receive high-quality Internet performance. Under this agreement, Exodus and GTE Internetworking have agreed to work closely together to increase the traffic volume at the current network interconnection points and expand the number of exchange points between the networks to cover a wider geographic area within the US. Other specific details of the agreement are subject to non-disclosure requirements.

"We applaud Exodus and GTE for reaching an agreement that is in the best interest of all of our customers and the future of the Internet," said Rex Smith, director of operations for Hotmail.

In addition to Hotmail, Exodus hosts popular Web sites such as GeoCities, HotBot, SportsLine USA and Lycos. GTE Internetworking's current customers include America Online, InfoSeek, Los Angeles Times, ZDNet, The Boston Globe and hundreds of thousands of business and consumer customers.

"We are pleased to have reached an agreement with GTE that enables us to exchange even greater network traffic and continue to provide exceptional service to our customers," said Ellen Hancock, president and chief executive officer, Exodus Communications. "As the Internet evolves, we will continue to work with our partners to ensure that each of our customers have the access required for the all their needs."

"By reaching this agreement, both GTE and Exodus can continue to concentrate on maintaining the high-level of performance our customers have come to expect," Chuck Gibney, president business services at GTE Internetworking. "We're pleased to be able to work with Exodus to increase interconnections to meet the growing demands of the Internet."

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About GTE Internetworking

GTE Internetworking, a unit of GTE Corporation (NYSE:GTE), includes the former BBN Corporation, which 29 years ago developed the ARPANET, the forerunner to today's Internet, and GTE Intelligent Network Services, which provides Internet services to consumers and small businesses. With its acquisition of Genuity, Inc. in December 1997, GTE Internetworking now has 12 global data centers and a unique load balancing technology for Web hosting.

GTE Internetworking offers customers, from consumers to Fortune 500 companies, a full spectrum of integrated Internet services using IP networking technologies. GTE Internetworking delivers complete network solutions, including dial-up and dedicated Internet access, high-performance Web hosting, managed Internet security, network management, systems integration, and Web-based application development for integrating the Internet into business operations. GTE Internetworking draws upon BBN's expertise in funded research and development of advanced technologies, including satellites, digital radio, multigigabit routers, security, and speech, and GTE's strong existing telecommunications services, including local and long distance, wireless, paging, video, and Internet.

About Exodus Communications

Exodus Communications is a leading provider of Internet system and network management solutions for enterprises with mission-critical Internet operations. The company manages Internet Web sites and its network infrastructure from Internet Data Centers (IDCs) in the San Francisco(3), Los Angeles, New York, Boston, Washington, D.C. and Seattle metropolitan areas and a server hosting facility in London. An IDC is planned for the Chicago metropolitan area in the first quarter of 1999 and the London metropolitan area in the second quarter of 1999. More information on Exodus can be found at http://www.exodus.net.

Forward Looking Statements

This press release contains forward-looking statements including statements related to the growth in Exodus' business, such as the expectation that businesses' Internet operations will continue to grow and that they will outsource all or a portion of their Internet operations to Exodus; Exodus' being well-positioned to provide expertise and services to operate mission-critical Web sites; and the continued growth of the Internet. Actual results may differ materially due to a number of risks, including: the technological and operational challenges of developing, deploying and delivering Exodus' services; difficulties managing the expansion of the Company's business, and hire additional employees, including senior executives and retain employees; and competition. The matters discussed in this press release also involve risks and uncertainties described from time to time in Exodus' filings with the Securities and Exchange Commission (SEC). In particular, see "Other Factors" in Exodus' quarterly reports filed with the SEC. Exodus does not assume any obligation to update the forward-looking information contained in this press release.

Exodus and Exodus Communications are trademarks of Exodus Communications, Inc. and may be registered in certain jurisdictions. All other trademarks mentioned in this document are the property of their respective owners.