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April 7, 2006

First day of Dealings on AIM

IX Europe plc ("IXEurope" or "the Company"), one of Europe's largest and fastest growing independent datacentre outsourcers is pleased to announce the commencement of trading in its shares on AIM (ticker IXE).

IXEurope provides datacentre capacity and service to enterprise, Internet and telecoms customers such as Merrill Lynch, Capgemini, Google (a member of the IXEurope internet exchange in Zurich) and France Telecom. Launched in 1999, IXEurope has achieved rapid customer growth, with annual revenue growth of over 30 per cent. for the past six years. The Company operates ten IXDatacentres in four European countries: the UK, Germany, France and Switzerland. IXEurope provides a range of datacentre services including co-location space, dedicated suites, network services, technical support and business continuity services.

The Company has raised �10 million through an institutional placing at 22p, which values IXEurope at a market capitalisation of approximately �38 million.

The Group intends to use the proceeds of the placing for the repayment of a �5.0 million bridging loan and shareholder loans of �1.9 million. Further proceeds will contribute to the fit out of a further large planned datacentre (London 4) to the West of London. The total cost of London 4 is estimated at approximately �15 million and will be phased in line with customer demand.

Investec, the nominated adviser and broker to IXEurope, has underwritten the Placing and placed all the shares with institutional investors.

Placing Statistics

Placing Price: 22p
Number of ordinary shares in issue on Admission  45,454,546
Proceeds of the Placing receivable by the Company (before expenses)  �10.0 million
Percentage of the enlarged share capital placed  26.3 per cent
Market capitalisation of the Company following the Placing at the Placing Price immediately following Admission  �38.0 million

Guy Willner, Chief Executive Officer, commenting on the Admission, said:

"These funds give us the financial muscle to expand further our datacentre capacity in response to customer demand, whilst improving our balance sheet as we look for further consolidation opportunities in the market. "

"Today's listing represents the next step as we extend our leadership and market share in Europe. We remain confident about our growth prospects, underpinned by strong recurring revenues and organic growth."

For further details:

IXEurope plc
Guy Willner, Chief Executive
Karen Bach, Chief Financial Officer 
020 7689 1400

Investec Investment Banking
Chris Godsmark/Andrew Pinder
020 7597 5000

College Hill
Adrian Duffield/Corinna Dorward
020 7457 2020

Investec Investment Banking, a division of Investec Bank (UK) Limited which is authorised and regulated by the Financial Services Authority, is acting for IX Europe plc in connection with the admission of the Company to trading on AIM, a market operated by the London Stock Exchange plc and is not acting for any person other than IX Europe plc and will not be responsible to any other person than IX Europe plc for providing the protections afforded to its customers or for providing advice to any other person in connection with the proposed admission to trading.

This announcement shall not, and no part of it shall, constitute or form part of any offer for sale or subscription, or any solicitation of any such offer, nor shall it, or any part of it, form the basis of or be relied upon in connection with any contract or commitment whatsoever. Any acquisition of, or application for, shares in IX Europe plc on its admission to trading should be made solely on the basis of information contained in the formal admission document relating to IX Europe plc issued in connection with its admission to trading.

Business Summary


  • IXEurope currently operates ten datacentres in four European countries (the UK, Germany, France and Switzerland). This provides IXEurope with exposure to more than 59 per cent. of the European IT services market and also offers exposure to the different stages of maturity of these markets.
  • IXEurope's customer base comprises over 400 clients in the enterprise, internet and telecoms sectors. Clients include Merrill Lynch, Capgemini, Google (a member of the IXEurope internet exchange in Zurich) and France Telecom.
  • IXEurope offers customers 99.999 per cent. service level agreements, which is equivalent to a maximum of 5 minutes and 23 seconds of ��down-time'', planned or unplanned, in any twelve month period.
  • In 2005 revenue growth continued to be strong, rising by 45 per cent. to �22.5 million. The organic growth rate from existing datacentres was 39 per cent. The Company achieved �1.8m of underlying EBITDA over the same period, its first full year of positive EBITDA.
  • Recurring revenues from long term contracts represented over 85 per cent. of the IXEurope Group's 2005 revenue.
  • Gross profit rose by 59 per cent. in 2005 with gross margins rising to 44 per cent. in 2005, from 41 per cent. in 2004 and 36 per cent in 2003.
  • IXEurope experienced a low churn rate of approximately 3 per cent. of revenues in 2005.
  • As at 31 December 2005, 79 per cent. of the total 16,800 square meters of net fitted out capacity was contracted and the Company has a further 7,900 square meters which can be fitted out within the existing datacentre portfolio.
  • The business has a strong management team, with the two co-founders, Guy Willner and Christophe de Buchet, as Chief Executive Officer and Chief Operating Officer. Many senior managers have also been with the business since shortly after launch in 1999.


Forward Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of IXEurope into Equinix; a failure to receive significant revenue from customers in recently built out data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; the results of any litigation relating to past stock option grants and practices; and other risks described from time to time in Equinix's filings with the Securities and Exchange Commission. In particular, see Equinix's recent quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.

Equinix and IBX are registered trademarks of Equinix, Inc. Internet Business Exchange is a trademark of Equinix, Inc.