Akamai Announces Debt Repurchases

Annual Interest Expense Reduced by $8.6 Million After Series of Repurchases

HostReview.com
Tuesday, April 27, 2004; 12:00 AM

CAMBRIDGE, MA, April 27, 2004 - Akamai Technologies, Inc. (NASDAQ: AKAM) today announced that it has repurchased, in several individually negotiated transactions, an additional aggregate $56.4 million in principal amount of its 5 1/2% Convertible Subordinated Notes due 2007 ("the 5 1/2% Notes").

In total, the Company has repurchased $193.2 million in principal amount of its 5 1/2% Notes, leaving an aggregate of $106.8 million in principal amount of the notes outstanding.

The Company used the proceeds from its recent $200 million 1% Senior Convertible Notes ("the 1% Notes") offering to fund the repurchase of almost two-thirds of its original principal balance of the 5 1/2% Notes. As a result of the repurchases, the Company has extended the effective maturity date of approximately two-thirds of its long-term debt from June 2007 to December 2010, and reduced its annualized interest expense by $8.6 million.

"We set out to significantly improve our balance sheet and to reduce our annual interest expense," said Robert Cobuzzi, chief financial officer at Akamai. "We have accomplished our objective through a combination of the extremely favorable terms on our new 1% Notes and our repurchases of the 5 1/2% Notes. Akamai's financial position is now the strongest it has been in years."

Previously, the Company repurchased $37.8 million in principal amount of the 5 1/2% Notes as part of a tender offer, which closed on March 24, 2004, and another $99.0 million in principal amount in individually negotiated transactions prior to the tender offer. To effect the most recent individual repurchases, Akamai paid a total of $58.5 million in cash, including amounts used for payment of accrued interest, to certain institutional investors.

About Akamai
to easily extend their Web operations - with full control - anywhere, anytime, without the cost of building out infrastructure. Headquartered in Cambridge, Massachusetts, Akamai serves hundreds of today's most successful enterprises and government agencies around the globe. Akamai is The Business Internet. For more information, visit www.akamai.com.

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Contacts: Akamai Technologies, Inc. jyoung@akamai.com Sandy Smith Investor Relations Akamai Technologies, Inc. 617-444-2804 ssmith@akamai.com