Results of Operations

Fourth Quarter

Total revenues for the fourth quarter ended December 31, 2009 increased to $55.4 million from $45.8 million in the comparable period in 2008, an increase of 21%. Recurring revenues, which consist of colocation and interconnection services, were $50.6 million in the fourth quarter 2009, an increase of 18% over the same period in the prior year. Non-recurring revenues in the fourth quarter 2009, representing one time installation fees and services, were $4.8 million compared to $2.8 million in the comparable period in 2008. Billed cabinets increased from 8,110 in the third quarter 2009 to 8,588 in the fourth quarter. This was the largest sequential growth in billed cabinets in over three years.

Cost of revenues, excluding depreciation and amortization, for the fourth quarter 2009 was $28.4 million as compared to $24.4 million for the fourth quarter 2008. As a percentage of revenues, cost of revenues improved to 51% in the fourth quarter of 2009 from 53% in the same period of the prior year.

Sales and marketing costs for the fourth quarter 2009 were $5.6 million as compared to $5.0 million in the comparable quarter in 2008. General and administrative expenses were $4.8 million for the fourth quarter as compared to $4.6 million for the fourth quarter 2008.

Other expenses were $2.6 million for the fourth quarter 2009 as compared to $0.1 million in the comparable quarter 2008. These expenses were primarily from the pending acquisition of Switch and Data by Equinix, Inc.

Operating income increased 183% to $5.3 million in the fourth quarter of 2009 as compared to $1.9 million in the comparable period in 2008.

Adjusted EBITDA increased to $19.9 million in the fourth quarter of 2009 as compared to $15.8 million in the comparable period in 2008, an increase of 26%. Adjusted EBITDA margins increased to 36% in the fourth quarter, from 35% in the comparable period in 2008. See "Adjusted EBITDA Reconciliation" for further discussion.

Net loss for the for the fourth quarter of 2009 was $2.1 million, including acquisition related expenses of $2.6 million, or $0.06 per basic and diluted common share as compared to a net loss of $8.5 million or $0.25 per basic and diluted common share in the comparable period in 2008.

Full Year 2009

For the year ended December 31, 2009, total revenues increased to $205.4 million from $171.5 million for the year ended December 31, 2008, an increase of 20%. Recurring revenues were $191.3 million, an increase of 18% over 2008. For the year ended December 31, 2009, non-recurring revenues were $14.2 million, an increase of 44% over the prior year.

For the year ended December 31, 2009, cost of revenues, excluding depreciation and amortization, was $103.1 million, up from $90.1 million for the year ended December 31, 2008. As a percentage of revenues, cost of revenues was 50% in 2009 as compared to 53% in the same period of the prior year.

For the year ended December 31, 2009, sales and marketing costs were $20.7 million as compared to $19.7 million for the same period in 2008. For the year ended December 31, 2009, general and administrative expenses were $19.0 million as compared to $17.7 million for the year ended December 31, 2008.

Other expenses were $3.1 million for the year ended December 31, 2009, as compare to $0.8 million for the year ended December 31, 2008. These expenses were primarily from the pending acquisition of Switch and Data by Equinix, Inc.

For the year ended December 31, 2009, Adjusted EBITDA increased to $76.3 million from $56.5 million in 2008, an increase of 35%.

Net income for the year was $0.4 million, including acquisition related expenses of $2.6 million, or $0.01 per basic and diluted common share as compared to a net loss of $7.0 million or $0.20 per basic and diluted common share in 2008.

Balance Sheet and Cash Flows

Switch and Data had cash and cash equivalents of $28.5 million on December 31, 2009. Bank debt outstanding on December 31, 2009 was $142.5 million. Capital expenditures in the quarter were $8.1 million and $62.5 million for the full year.

Merger with Equinix

On October 21, 2009, Switch and Data and Equinix, Inc. (Nasdaq: EQIX) entered into a definitive agreement for Equinix to acquire Switch and Data in a transaction valued at approximately $689 million in cash and stock, based on Switch and Data's October 20th market closing price. On January 29, 2010, Switch and Data stockholders voted to approve Switch and Data's merger with and into Sundance Acquisition Corporation, a wholly-owned subsidiary of Equinix. Completion of the merger remains subject to the expiration or termination of the waiting period imposed by the Hart-Scott-Rodino Antitrust Improvement Act of 1976, as amended, and the satisfaction or waiver of the other closing conditions specified in the merger agreement between Equinix and Switch and Data. The merger is expected to close in the second quarter of 2010. There can be no assurances that the proposed merger will be consummated.

The merger agreement is attached as Exhibit 2.1 to the Current Report on Form 8-K that Switch and Data filed with the Securities and Exchange Commission (the "SEC") on October 22, 2009.

Switch and Data will not host an investor call.

About Switch and Data

Switch and Data is a premier provider of network-neutral data centers that house, power, and interconnect the Internet. Leading content companies, enterprises, and communications service providers rely on Switch and Data to connect to customers and exchange Internet traffic. Switch and Data has built a reputation for world-class service, delivered across the broadest colocation footprint and richest network of interconnections in North America. Switch and Data operates 34 sites in the U.S. and Canada, provides one of the highest customer satisfaction scores for technical and engineering support in the industry, and is home to PAIX(R) - the world's first commercial Internet exchange.

Important information about Switch and Data is routinely posted to the investor relations section of the website http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.switchanddata.com&esheet=6181417&lan=en_US&anchor=www.switchanddata.com&index=1&md5=a9f2fb2fcaf2f9e2d1661cf55cd6b980. For copies of all Switch and Data press releases and SEC filings, please visit the website. To automatically receive Switch and Data financial news by email, please visit the website and subscribe to Email Alerts. Investors are encouraged to check Switch and Data's website frequently to access the most up-to-date information.

Forward-Looking Statements

Certain statements herein, particularly in those sections titled "Balance Sheet and Cash Flows" and "Merger with Equinix" are "forward-looking statements."Such forward-looking statements are not historical facts but instead reflect Switch and Data's current expectations or beliefs concerning future events and results of operations, many of which, by their nature, are inherently uncertain and outside of Switch and Data's control. Words such as expects, believes, estimates, anticipates and similar language indicates forward-looking statements.It is possible that actual results may differ, possibly materially, from those anticipated in these forward-looking statements.Factors that might cause such differences include, but are not limited to, the failure of a condition to closing of the transaction to be satisfied; and the risk that a regulatory approval that may be required for the transaction is not obtained or is obtained subject to conditions that are not anticipated.Further information concerning Switch and Data and its business, including factors that potentially could materially affect Switch and Data's financial results and conditions, as well as its other achievements, are contained in Switch and Data's filings with the SEC.Switch and Data does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

*Recurring revenues represent new service agreements entered into by new and existing customers during the given quarter. Revenues from these agreements will recur monthly over the life of the agreement.

**Non-recurring revenues represent the one-time installation fees associated with new service agreements. These one-time fees are billed to customers upon completion of the installation service and such revenues are recognized on a straight-line basis over the life of the agreement.

Adjusted EBITDA Reconciliation

The following is a reconciliation of Switch and Data's operating income (loss) to Adjusted EBITDA for the periods ended December 31, 2008 and December 31, 2009. This reconciliation can also be found on Switch and Data's website in the Investor Relations section.

Switch and Data defines "Adjusted EBITDA" as operating income from continuing operations, plus depreciation and amortization, stock-based compensation expense and other non-cash items such as deferred rent. Switch and Data calculates Adjusted EBITDA margin as Adjusted EBITDA divided by total revenues.

Switch and Data uses Adjusted EBITDA as follows:

• As a measurement of operating performance because they assist management in comparing the results on a consistent basis as Adjusted EBITDA removes the impact of items not directly resulting from operations;
• For planning purposes, including the preparation of the internal annual operating budget;
• To establish targets for certain management compensation; and
• To evaluate its capacity to incur and service debt, fund capital expenditures and expand the business.

Adjusted EBITDA as calculated by the Switch and Data is not necessarily comparable to similarly titled measures used by other companies. In addition, Adjusted EBITDA: (a) does not represent net income or cash flows from operating activities as defined by GAAP; (b) is not necessarily indicative of cash available to fund Switch and Data's cash flow needs; and (c) should not be considered as an alternative to net income, operating income, cash flows from operating activities or other financial information as determined under GAAP.

Switch and Data prepares Adjusted EBITDA by adjusting EBITDA to eliminate the impact of a number of items that it does not consider indicative of its core operating performance. Investors are encouraged to evaluate each adjustment and the reasons Switch and Data considers them appropriate. As an analytical tool, Adjusted EBITDA is subject to all of the limitations applicable to EBITDA. In addition, in evaluating Adjusted EBITDA, investors should be aware that in the future Switch and Data may incur expenses similar to the adjustments in this presentation. Switch and Data's presentation of Adjusted EBITDA should not be construed as an implication that its future results will be unaffected by unusual or non-recurring items.

Footnotes:

(1) Loss (gain) on disposal of fixed assets is a non-cash component of Adjusted EBITDA. These expenses may be included in both the General and administrative and Cost of revenues line items of the Statement of Operations.

(2) Stock-based compensation expense is a non-cash expense to Switch and Data that can be found on the Statement of Cash Flows.

(3) Switch and Data has incurred legal expenses for lawsuits brought by several landlords for breach of lease agreements. These expenses are included in the General and administrative line item of the Statement of Operations.

SOURCE: Switch & Data Facilities Company, Inc.

Switch & Data Facilities Company, Inc.
Investor Relations
Seth Potter, 646-277-1230
or
Idalia Rodriguez, 203-682-8264
ir@switchanddata.com