12 June 2006
Equinix Announces Review Relating to Stock Options
Foster City, CA — June 12, 2006 — Equinix, Inc. (Nasdaq: EQIX) today announced the Company has initiated an independent review by the audit committee of the Board of Directors to review the Company's historical stock option practices and related accounting. The Company requested the internal review following the release of a third party report regarding the timing and pricing of stock option grants at a large number of public companies. Independent counsel and advisors are assisting the audit committee with this review.
The Company also announced that subsequent to the initiation of this review, it received an informal inquiry from the Securities and Exchange Commission relating to stock option grants and practices. The letter from the SEC states that the inquiry should not be construed as an indication by the SEC or its staff that any violation of law has occurred, or as an adverse reflection upon any person, entity or security. The Company intends to cooperate fully with the SEC.
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.