Rackspace Catches AboveNet Wave

London, July 13, 2004 – AboveNet Communications UK Ltd, a subsidiary of AboveNet Inc., a leading provider of integrated access services to leading edge enterprises, announced today that it has signed a contract with Rackspace Managed Hosting (Rackspace.com) for two diversely routed 1Gigabit wavelengths and IP Transit in excess of 100Mb.

Managed web-hosting provider Rackspace, who has recently secured a US$25 million revolving line of credit from Comerica Bank, is increasing their network capacity across the City of London to accommodate for its increasing share of the UK's managed hosting market.

The diversely routed 1 Gigabit wavelengths will connect Rackspace from IX Europe's London West facility in Heathrow to Telehouse in the Docklands. The wavelengths, which will be provided over AboveNet's new London DWDM network, will be provisioned across completely separate routes in order to enhance the redundancy, speed and quality of their existing network.

Rackspace will also connect to the AboveNet global IP backbone via Gigabit-Ethernet connectivity, gaining access of up to 1 Gigabit of unconstrained bandwidth capacity. This dedicated supply of IP transit will enable Rackspace to continue to provide the secure and reliable service that its customers have come to expect.

"Rackspace is focusing on meeting the growing demands of its customer base and as such the stability and performance of our network is crucial when providing a high quality, high performance platform for new and existing business. AboveNet's network and technical ability to provide this solution gives us the freedom to concentrate on providing top quality services in this highly competitive managed hosting market," said Dominic Monkhouse, Rackspace's MD.

"Rackspace's exponential growth over the last year and continued growth set for the future commands a network that can scale with the expansion of its business. It gives me great satisfaction that AboveNet is continuing to build on the existing strength of a relationship with a company as well known in the market place as Rackspace," said John Dowbiggin, AboveNet's UK MD.

About Rackspace Managed Hosting

Founded in 1998 with locations in Europe and the USA, Rackspace Managed Hosting provides its award winning managed Web hosting services and unique brand of customer service, Fanatical SupportT, to a broad range of enterprises. Focusing exclusively on managed hosting, Rackspace supplies the necessary infrastructure - servers, software, bandwidth and management - needed to run almost any hosted solution.

The company's philosophy of Fanatical Support has made Rackspace one of the fastest growing companies in the world. 2003 was Rackspace's best year yet, with a turnover growth of 240%, the average revenue per customer going up by 33% and now has more than 1,000 customers.

Rackspace has received numerous industry awards for its Fanatical Supporttm including, most recently, Microsoft's Hosting Solutions Service Provider of the Year Award and the prestigious Learning Organisation Award from the Unisys Customer Service Excellence Awards. For more information, visit www.rackspace.co.uk or call 0800 587 2306

About AboveNet, Inc.
AboveNet, Inc. is a top provider of integrated access services for leading edge enterprises. AboveNet builds and operates an office-to-office, 100-percent optical network enabling customers to create an efficient, cost-effective network that breaks economic and performance barriers imposed in the last mile by complex legacy telecom infrastructures. With one of the most extensive metropolitan optical networks in the world, data centers throughout the US and Europe, top quality managed services and a high-performance IP network, AboveNet is able to offer the most flexible and complete information exchange solutions in the industry.

This news release contains forward-looking statements that involve risks and uncertainties. Factors that could cause or contribute to such risks and uncertainties include, but are not limited to, general economic and business conditions, competition, changes in technology and methods of marketing, and various other factors beyond the Company's control. This also includes such factors as are described from time to time in the SEC reports filed by the Company including the most recently filed Forms S-3, 10-K, 10-Q and 8-K-.