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365 MAIN ANNOUNCES NATIONAL PRESENCE WITH
ADDITION OF MAJOR DATA CENTERS IN PHOENIX,
LOS ANGELES AND NORTHERN VIRGINIA

Los Angeles Data Center Opens Today -- All Facilities
Serve Hosting Providers and Enterprise Customers

EL SEGUNDO, Calif., June 28, 2006 — 365 Main Inc., developer and operator of the world’s finest data centers, has added facilities in Phoenix, Los Angeles and northern Virginia to its operations. The company, which leases its modern data centers to dedicated hosting providers and also offers core hosting services to large enterprises such as Charles Schwab, the Oakland Raiders and Sun Microsystems, now has nearly one million square feet of data center real estate under management nationwide.

The announcement was made at today’s opening of the 135,000-square foot Los Angeles facility in El Segundo. The Phoenix (315,000 square feet) facility is also fully operational, and the northern Virginia (145,000 square feet) complex will open on September 1. The company’s flagship data center in San Francisco is 228,000 square feet.

Each data center features essential power, cooling, security and connectivity to fuel increasingly complex and demanding enterprise computing environments. All facilities are available 24 hours a day, seven days a week, 365 days a year and are certified to the highest industry standards and compliance requirements, including SAS70.

Growing market
Industry analysts agree that the data center market is expanding rapidly and that demand is outstripping supply in every market in the United States.

According to Tier 1 Research (May 2006):

Today's high-end U.S. data centers are 70 to 80 percent full, and existing space is filling up faster than new real estate is coming on the market.
Demand for U.S. data center space grew 11 percent in the last 12 months, six percent in last six months alone.
The overall U.S. Internet infrastructure services market will grow to $14.5B in 2007.


According to IDC (February 2006):

The number of U.S. servers will grow by five million to more than 25 million by 2009.
 

"365 Main has come out of nowhere to establish itself as an impressive player in the premium data center market,” said Andrew Schroepfer, president of Tier 1 Research. “The key is the management team's strong experience in data center construction and operations. 365 Main's strategy is to place high quality data center facilities in markets with strong demand. It’s no wonder than they have achieved remarkable success in a short time."

365 Main’s management has more than 50 years of combined modern data center and development experience, having held leading engineering, architecture and construction positions at AboveNet Communications, MCI, Opus, Alfatech Consulting Engineers and Clark Construction.

“We created 365 Main four years ago with the vision of supporting the next wave of technology growth on a national level with a smart, patient and sound growth plan, and today that vision becomes a reality,” said Chris Dolan, 365 Main president and founding partner. “The slow but steady recovery of the tech market, combined with new reporting regulations, physical factors such as natural disasters, and the threat of network attacks, have brought data centers to the spotlight again. And with this carefully executed expansion we are very well-positioned to service any hosting provider or high-end enterprise with a safe, controlled, compliant environment to run and/or protect their business.”

Power is king
In the data center expansion in the 1990s, most data center customers were limited by bandwidth, struggling to attain enough connectivity to run their business over the Internet. Today, with ample fiber optic cabling available to help speed the flow of data, power has become the new center of customer frustration. 365 Main has seen power requirements quadruple in the last three years as dense server deployments now dominate the enterprise. To cater to this growing concern, the company has negotiated discounted power rates with local providers in each region and has also introduced a unique billing system in which it only charges customers for the exact amount of power they use. “Power is the first thing everyone asks about now,” said Dolan. “It’s a major concern, so we developed a billing model that only charges customers for exactly what they use. Most companies charge a flat rate per month in a ‘use it or lose it’ structure, which usually means that the customer loses. But that’s not the way we like to do business, so we came up with a different model that is more fair to the customer.”

Customer service
Amy Trask, CEO of the Oakland Raiders, appreciates 365 Main’s commitment to customer service. “The Raiders required a more stable data center space with a team working to provide us best-of-class service, and that’s exactly what we got the moment we signed up with 365 Main,” she said. “Our organization prides itself on a commitment to excellence, and we only do business with companies like 365 Main that have these same values.”

365 Main’s San Francisco data center has hosted www.raiders.com since 2002. The site has been extremely successful and now features versions in five different languages providing news, streaming video and online merchandising to fans worldwide.

"We chose to work with 365 Main because of the high quality that their facilities provide in multiple locations,” said Bob Smith, chief marketing officer for Internap, a leading provider of network optimization products and services, including high performance IP services, data center services and route control products. “365 Main's secure, fully redundant data center services are an ideal component of our managed IP connectivity solutions in some key locations. Leaving the data center infrastructure to them allows us to focus on our core competency, which is enabling our customers to migrate their business-critical applications to the Internet."

About 365 Incorporated
365 Main Inc. develops and operates the world’s finest data centers. Intelligently designed and expertly managed, the data centers are developed and certified to the highest industry standards and compliance requirements, including SAS70, and feature 24/7/365 power, cooling, security and connectivity and capabilities to ensure mission-critical operations and business continuity for its tenants. Today, hundreds of hosting, telecommunication and Fortune 1000 enterprises rely on 365 Main. The company is privately held and based in San Francisco, Calif. More information is available at 877-365-MAIN (6246) or www.365main.com.

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365 Main is a registered trademark of 365 Main Inc. All other names and trademarks are the property of their respective owners.