PSINet, the first commercial Internet service provider, today announced
significant expansion of its operations in Europe. PSINet continues to
demonstrate its commitment to European business customers by establishing
European headquarters, local sales offices, and regional customer support
facilities.

Said Volker Kleinn, president of the PSINet European operations, “The Internet
marketplace in Europe is developing much faster than it did in North America
and is less homogeneous. Meeting this exploding demand requires both agility
and willingness to commit significant resources to meet a broader range of
customer needs. PSINet is positioning itself to take best advantage of the
steep growth in this market.”

Headquarters for the PSINet Europe operations have been established near
Geneva, Switzerland, where administrative, marketing, and corporate functions
are conducted. From this location, overall European activities will be
co-ordinated, as will initial operations for recently established subsidiaries
in France and Italy.

Plans are underway to establish a European technical support centre that will
accommodate up to 200 staff in over 3000 square meters during the next two to
five years. In addition, capacity to public Internet peering points has been
upgraded by the addition o one, two, and 10 megabit-per-second communication
links.

Assistance from the canton of Neuchatel will enable more rapid expansion of
local support operations than would otherwise be possible.

To address the Internet market in Germany and Austria, PSINet Germany GmbH has
been established under the supervision of Helmut Blank, Managing Director. With
headquarters in Munich, Blank has assembled a local sales and marketing team
that will serve customers in major metropolitan areas.

Network operations in the PSINet Germany area have been extended to include
Frankfurt, Munich, and other major cities in Germany and Austria.

Moos Bulder, Vice President of the PSINet European operations, is responsible
for PSINet activities throughout the Benelux region and also serves as Managing
Director for both PSINet Belgium SPRL and PSINet Netherlands BV.

The Benelux PSINet team serves customers in the Netherlands, Belgium, and
Luxembourg from offices established initially in Amsterdam and Brussels.
Regional network facilities are interconnected and architecturally compatible
with PSINet’s global network infrastructure. In this way, local customers have
access to the same service quality and features enjoyed by PSINet customers
worldwide.

Said Bulder, “Services and technology that are global in scope are especially
important to the growing number of companies whose marketplace is worldwide. At
the same time, we have found that strong local presence and expertise are
critical to understanding and meeting our customers’ expectations.”

Partnerships with systems integrators will allow local PSINet teams to provide
customers with complete solutions. Citing LAN integration and security as areas
in which PSINet partnership programs would drive success, Bulder added, “The
team and facilities we are building, both here and throughout Europe, reflect a
combination of global strength with local commitment.”

About PSINet

PSINet is a leading provider of turn-key corporate Internet and intranet
access, managed security services, electronic commerce solutions and Web
hosting services throughout the United States and abroad.

PSINet manages one of the world’s largest and most advanced fast-packet
networks, which provides state-of-the-art, high speed Internet access ranging
from dedicated high-speed circuits to ISDN to high-speed modem dial-up. PSINet
backs up its state-of-the-art network with the industry’s original service
guarantee, employing automatic back-up systems and crediting for service
outages.

Headquartered in Herndon, Virginia, PSINet has offices throughout the U.S. and
subsidiaries in Canada, Japan and Europe, including Belgium, Germany and the
U.K.