Endonucleases are a group of enzymes that catalyze the cleavage of the phosphodiester bond that is found within the polynucleotide chain. On the other hand, exonucleases are a group of enzymes that break or cleave nucleotides or DNA sequences present in a polynucleotide chain, usually at position 5 or 3 of the polynucleotide chain.
Unlike endonucleases that cleave nucleotides from the middle of the of a polynucleotide chain, exonucleases cleave nucleotides from the ends of a polynucleotide. Both types of enzymes do not have a lag period before they start their work. However, some endonucleases suffer from this; they are called restriction endonucleases.
The reason is that they need enough time to recognize their specific sites. After the cleavage of polynucleotides by endonucleases, the compounds formed are known as oligonucleotides. On the other hand, after the cleavage of polynucleotides by exonucleases, the compounds formed are known as nucleosides or nucleotides.