In March, SAVVIS closed on the acquisition of the assets of Cable & Wireless USA, Inc. and Cable & Wireless Internet Services, Inc. (together, with certain of their affiliates, "Cable & Wireless America" or "CWA"). SAVVIS issued $200 million of subordinated debt at that time to fund the purchase price and provide ongoing working capital for the CWA assets.

SAVVIS Chief Financial Officer Jeff Von Deylen commented, "We are delighted to welcome a firm with GI Partners' expertise and track record to the roster of our key financing partners. Their investment is a clear show of confidence in the company's business strategy and growth potential. SAVVIS has attracted top-caliber financing partners, who have consistently supported the company's development of a successful business model and its financial growth. As we continue to integrate the Cable & Wireless business, we remain fully committed to creating value for all of our investors."

According to Rick Magnuson, GI Partners' Executive Managing Director, "The combination of SAVVIS and CWA creates one of the world's largest providers of managed hosting and IP infrastructure services. We are excited about investing in a company so poised for growth in those core sectors of the IT industry."

Von Deylen continued, "As we indicated when announcing record revenues for the first quarter of 2004, SAVVIS expects to achieve annualized revenue of $700 million and annualized cost savings of $100 million by year-end 2004. We continue to forecast positive EBITDA in the third quarter and positive free cash flow by the end of the year."