Equinix Enters into Sale-Leaseback Agreement for L.A. Data Center

Equinix, Inc. (www.equinix.com) a provider of network-neutral data centers and Internet exchange services, today announced that it has entered into a sale-leaseback agreement for the data center property it recently purchased in the Los Angeles area.

Equinix also has entered into a non-binding letter of intent to obtain long-term debt financing on Equinix's recently-purchased Washington, D.C. area data center campus and to amend its ground lease for 39 acres of land in San Jose to allow for early termination of Equinix's obligations under this lease.

In September 2005, Equinix purchased a 107,000 square foot stand-alone data center located in El Segundo, in the Los Angeles area, for $34.7 million, including closing costs.

The Company has now entered into a purchase and sale agreement dated October 24, 2005, to sell this data center for $38.7 million and to lease it back from the purchaser pursuant to a long-term lease. Equinix will realize approximately $15 million in cash savings over the initial term of the lease as opposed to having entered into a direct lease with the previous owner. These savings include a cash benefit on the sale of the center approximating $3.5 million, net of costs.

"The financial strength of Equinix has enabled us to gain financial control over key strategic properties and to better align our real estate assets with our long-term expansion objectives," said Peter Van Camp, CEO of Equinix.
In October, Equinix purchased its flagship Washington, D.C. area data center campus in Ashburn, Virginia for $53.0 million. The Company drew down $30.0 million of its $50.0 million Silicon Valley Bank revolving credit line to fund a portion of the purchase price for this property.

The Company has negotiated a non-binding letter of intent to finance this acquisition with a $60.0 million, 8% mortgage to be amortized over 20 years. Equinix plans to continue expanding its IBX operations on the Ashburn campus and has agreed to invest $40.0 million in the property by the end of 2007.

The Company also announced today that it has entered into a non-binding letter of intent for the early termination of its San Jose ground lease. The ground lease, which covers 39 acres, was entered into in June of 2000 and had a remaining commitment of nearly $100.0 million through 2020.

Equinix is the leading global provider of network-neutral data centers and Internet exchange services for enterprises, content companies, systems integrators and network services providers. Through the company's Internet Business Exchange™ (IBX®) centers in 11 markets in the U.S. and Asia, customers can directly interconnect with every major global network and ISP for their critical peering, transit and traffic exchange requirements.