<PAGE>
Prospectus Supplement No. 3 Filed Pursuant To Rule 424(b)(3)
(To Prospectus Dated June 25, 1999) Registration No. 333-79059
$250,000,000
EXODUS COMMUNICATIONS, INC.
5% Convertible Subordinated Notes Due March 15, 2006 and 5,473,150 shares
of Common Stock Issuable Upon Conversion of the Notes
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This prospectus supplement relates to the resale by the holders of 5%
Convertible Subordinated Notes due March 15, 2006 of Exodus Communications,
Inc. and the shares of common stock of Exodus issuable upon the conversion of
the notes.
This prospectus supplement should be read in conjunction with the prospectus
dated June 25, 1999 and the prospectus supplements dated July 6, 1999 and August
5, 1999, which are to be delivered with this prospectus supplement. All
capitalized terms used but not defined in this prospectus supplement shall have
the meanings given them in the prospectus.
The information in the table appearing under the heading "Selling Holders"
in the prospectus is superseded in part by the information appearing in the
table below:
<TABLE>
<CAPTION>
Principal Amount Common Stock Common Stock
of Notes Owned Owned After
Beneficially Owned Prior to the Common Stock Completion of
Name and Offered (1) Offering (1)(2) Offered (2) Offering
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<S> <C> <C> <C> <C>
Deutsche Bank Securities Inc. 20,200,000 442,230 442,230 0
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Family Service Life Insurance 300,000 6,567 6,567 0
Company
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Goldman Sachs and Company 23,123,000 1,271,273(3) 506,222 765,051
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Guardian Life Insurance Company of 7,000,000 153,248 153,248 0
America
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Guardian Pension Trust 200,000 4,378 4,378 0
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Island Holdings 2,000 48 48 0
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Merrill Lynch Pierce Fenner & Smith 130,000 2,846 2,846 0
Inc.
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</TABLE>
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(1) Includes common stock into which the notes are convertible.
(2) Assumes a conversion price of 21.8926 shares per $1,000 principal amount of
(3) Includes an additional number of shares of our common stock held by the
security holder subject to the conversion of our 4 3/4% convertible
subordinated notes due July 15, 2008 in an amount equal to the number set
forth in the column entitled "Common Stock Owned After Completion of the
Offering".
Investing in our Common Stock or our convertible subordinated notes involves
a high degree of risk. Please carefully consider the "Risk Factors" beginning
on Page 4 of this prospectus.
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Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or passed upon the
adequacy or accuracy of this prospectus or this prospectus supplement. Any
representation to the contrary is a criminal offense.
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The date of this prospectus supplement is May 25, 2000.
