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Switch and Data’s PAIX Internet Exchange is the Fastest Growing Place for International Broadband Networks to Meet Premium U.S. Internet Content

October 13, 2008

Switch and Data (NASDAQ: SDXC), a leading provider of network neutral data center and Internet exchange services, announced today that traffic on its PAIX Internet exchanges grew at about twice the rate of overall Internet traffic in the past year. This growth has been driven by international broadband, “eyeball” networks which are increasingly choosing to peer with leading U.S. Internet content sites in the company’s Palo Alto and New York exchanges. PAIX traffic has grown by 112% in the past year versus a 65% global Internet traffic growth rate.

Switch and Data’s PAIX Palo Alto site was the world’s first commercial Internet exchange and has long been the leading site for Asian networks to peer traffic with U.S. content providers on the west coast of the United States. In the past year the Palo Alto exchange has experienced 67% traffic growth. Switch and Data’s New York PAIX is the fastest growing commercial Internet exchange in the New York/New Jersey metro region. Peak average traffic on the New York exchange has grown by 295% in 2008 versus the next fastest growing New York Internet exchange which has grown by 50%. Switch and Data’s east coast growth has been driven by European networks coming to New York peering traffic with U.S. content companies.

International networks are making the decision to peer in the United States to reduce transit time between countries and accelerate the performance of U.S. and other global websites in their home markets. This is important due to the explosive growth of Web 2.0 with its bandwidth intensive websites for social networking, rich digital content, and business software applications. Exchanging traffic directly between content and end user networks also significantly reduces Internet transit expense which has been a rapidly growing cost for companies as their traffic volumes soar.

“IP traffic volume is growing very quickly due to the increasing penetration of broadband Internet access and the proliferation of new rich media based online applications,” explained Ernie Sampera, Senior Vice President and Chief Marketing Officer for Switch and Data. “We are pleased to provide a neutral, network-dense environment for industry to meet its partners and efficiently scale for growth.”

Switch and Data’s strategic investments in PAIX and customer acquisition momentum have been paying off in increased market share for its exchanges. In the past year the company has an introduced an exclusive relationship with Renesys to provide real time peer analysis tools to all PAIX participants. Switch and Data has also introduced its Web MarketPlace to enable customers to find new peers not currently publicly peering in a specific Switch and Data location. PAIX offers 10 Gig interconnection port speeds in all markets.

About Switch and Data

Switch and Data is a premier provider of network-neutral data centers that house, power, and interconnect the Internet. Leading content companies, enterprises, and communications service providers rely on Switch and Data to connect to customers and exchange Internet traffic. Switch and Data has built a reputation for world-class service, delivered across the broadest colocation footprint and richest network of interconnections in North America. Switch and Data operates 34 sites in the U.S. and Canada, provides one of the highest customer satisfaction scores for technical and engineering support in the industry, and is home to PAIX(R) – the world’s first commercial Internet exchange.

For more information on Switch and Data, please visit www.switchanddata.com.




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