Troubled PSINet Inc. has named Harry G. Hobbs as its new president and chief operating officer, and it has entered into negotiations to sell yet another one of its subsidiaries. Last week, the financially strapped Internet service provider divested itself of three subsidiaries and a Web hosting center

Reporting directly to William L. Schrader, PSINet's chairman and chief executive officer, Hobbs will oversee all global operations for the Ashburn, Va.-based company. Previously, he served as Executive Vice President and divisional President of the Company's International Operations with responsibility for Latin America, Europe and the Asia Pacific region.

PSINet also announced that it had engaged Dresdner Kleinwort Wasserstein as a financial advisor to explore alternatives to restructure the company's obligations to its bondholders and other creditors. As a priority in that undertaking, Dresdner Kleinwort Wasserstein will initiate conversations with the company's bondholders.

Dresdner Kleinwort Wasserstein's activities will be undertaken in conjunction with the on-going activities of Goldman, Sachs & Co. which, since it was retained in November, have been directed at identifying strategic alternatives including divestitures of non-core businesses as well as the possible sale or merger of the entire company.

A company statement stressed that "there is no assurance that the company will be successful in restructuring its obligations or completing one of these strategic alternatives. Even if PSINet is successful in one or both of these efforts, it is likely that the common stock of the company will have no value, and the indebtedness of the company will be worth significantly less than face value."

In its ongoing efforts to shred its non-core subsidiaries, the company also said that its wholly owned subsidiary, Metamor Holdings (France), has entered into a definitive agreement with Getronics International BV for the sale of Metamor Holdings (France)'s entire ownership interest in Decan Groupe, a provider of information communications and technology solutions.

Metamor Holdings (France) owns over 98 percent of the outstanding ordinary shares of Decan Groupe and more than 99 percent of its outstanding convertible bonds. Decan Groupe is listed on the Paris stock exchange. The aggregate purchase price is approximately Euro 58.5 million; however, due to adjustments and an escrow, proceeds at closing are expected to be approximately Euro 33.5 million.

PSINet maintains a Web site at http://www.psi.com.

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