PSINet: Internet Super Carrier / E-Commerce Hosting Centers in 15 Countries on Four Continents Connected by a 3.2 Terabit Network

NEW YORK (PROTEXT) - PSINet Inc. (Nasdaq: PSIX), the first andlargest independent facilities based commercial Internet ServiceProvider (ISP), today outlined its strategic direction for the21st century and announced major new agreements that position thecompany as an Internet Super Carrier (ISC). Elements of an ISCinclude: * E-Commerce Web Hosting Centers -- 20 centers with 1.5million square feet of revenue producing space in key financialand business centers including New York, Los Angeles, London,Paris, Frankfurt, Toronto, Tokyo, Sao Paolo, Hong Kong. * Extensive global distribution supported by 1,000 salespersonnel, 2,500 value added resellers (VARs), systemsintegrators and Web design professionals. * One global brand name recognized for the services andapplications important to customers, supported by local languagesales, provisioning and service. * Worldwide fiber networks and optronic equipment, companyowned and operated, capable of three terabits per second speedsand above. "In 2000 and beyond, an ISC will combine all of these elementsand more to achieve high customer retention rates and strongmargins in a non-regulated, non-monopolized Internet era," saidPSINet chairman and CEO William L. Schrader. "The series ofannouncements being made here today serves as a fundamentalcomponent of our strategy to construct a leading global InternetSuper Carrier, with the optimal infrastructure for E-Commercetransactions supported by PSINet owned and operated fiber,hosting centers, and expert staff, covering nearly 80% of theworld's economic base. The plan involves a multi-year, multi-billion dollar expansion of our infrastructure, setting thestandard for 21st century telecommunications, which itself maybecome the largest sector of the global economy." Investment Disclosures: * Reaffirming an earlier commitment, PSINet will build arecord 21+ global hosting centers worldwide by the end of 2000,with plans for more than 60. As part of this plan, Schraderdisclosed the opening of a new state-of-the-art hosting center at33 Whitehall St. in lower Manhattan. The center houses a POP onPSINet's fiber, customer web hosting and collocation facilities,and a network operations center. * To support New York traffic, PSINet noted it has signed anagreement, subject to regulatory approval, for a major Manhattansupplier to provide, among other services, Symmetrical DigitalSubscriber Loop (SDSL) high speed, local transmission services inNew York City. The service will be provided on a PSINet-dedicatedand controlled network connecting company customers to the 33Whitehall St. POP. The local loop network will consist of an 11node OC-48 SONET ring in Manhattan covering multiple centraloffices serving prime New York business customers. Approval isanticipated in the fourth quarter of 1999. * An agreement was also announced in which PSINet acquired 16dark fibers across the U.S. from IXC Communications (Nasdaq:IIXC). The initial deployment of optronic equipment to light 4dark fibers, which are currently available, begins immediatelyand is expected to be completed late in 2000. The first 4-fibersystem covers 13,900 route miles and the entire continental U.S.Concurrent with this transaction, a significant partnershipagreement was also disclosed for the purchase of optronics fromNortel Networks (NYSE: NT) -- to light the fiber with Dense WaveDivision Multiplexing technology, providing over a terabit persecond of capacity on each pair. * Schrader additionally announced the proposed purchase of twodiversely routed fiber pairs on the FA-1 transatlantic cablesystem with a design capacity of at least 800 Gigabits persecond, with the initial lighting at 40 Gigabits. The route iscomposed of ten segments connecting New York, Paris and London.FA-1 is scheduled for activation in the first quarter of 2001.PSINet's US and European dark fiber networks, connected by theAtlantic fiber, are the largest such infrastructure deploymentsdedicated to IP services on their respective continents. * PSINet further revealed it has completed an agreement withLoral Orion, Inc., a Loral Space & Communications Company (NYSE:LOR), under which it has purchased satellite transponder andearth station equipment for implementation of PSINet's facilitiesbased Latin American network. This transaction permits PSINet tolink its operations in Brazil, Latin America's Southern Cone and,in the future, South Africa, directly into PSINet's existingfiber network. The agreement also includes portability rightsallowing PSINet to re-allocate capacity to other regions such asEastern Europe, India, the Middle East and Africa as PSINetdevelops these markets. * PSINet also disclosed that it has filed for a license inHong Kong for the right to terminate a 320 Gigabit per secondsubmarine cable system connecting Hong Kong and Japan. PSINetowns a 20% interest in the submarine cable consortium withactivation expected in the second quarter of 2001. The companyplans to interconnect this system with its

previously announced ownership in the Japan-U.S. cable systemconnecting Japan and the United States. * PSINet also unveiled today a new Internet universal transitproduct that connects all countries' IP traffic with each otherfor a single price. It has global routing characteristics, asignificant technological advantage over competitors such as MCIWorldCom, Cable and Wireless and Sprint. "The operational features and infrastructure for tomorrow'scommunications networks are being determined now," Schraderadded. "The model put forth today will set the pace for all othercommunications providers to follow under what is clearly a globalIP protocol." More information on IXC can be found at www.ixc-comm.com;Nortel at www.nortelnetworks.com; FA-1 at www.flagatlantic.com;and Loral Orion at www.loralorion.com. Headquartered in Herndon, VA, PSINet is an Internet SuperCarrier offering global E-commerce infrastructure and a fullsuite of retail and wholesale Internet services through wholly-owned PSINet subsidiaries. Services are provided on PSINet-ownedand operated fiber, satellite, Web hosting and switchingfacilities providing direct access in more than 800 metropolitanareas in 21 countries on five continents. PSINet information canbe obtained by e-mail at info@psi.com, by accessing the Web siteat http://www.psinet.com or by calling in the U.S. 800-799-0676.ots Original Text Service: PSINet Inc. Internet:http://www.newsaktuell.de Contact: media, Bob Leahy, 703-375-1063, leahyr@psi.com or Reid Walker, 703-375-1103,rwalker@psi.com; or analyst, David Lerch, 703-375-1245,lerchd@psi.com, all of PSINet Inc. Web site: http://www.ixc-comm.com Web site: http://www.nortelnetworks.com Web site:http://www.flagatlantic.com Web site: http://www.loralorion.comWeb site: http://www.psinet.com

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