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PSINet Reports Strong Earnings 4Q 1997

PSINet Inc. reported it earned $34.8 million in the fourth quarter ended December 31, 1997, an increase of 52% from the revenues reported the same period the prior year of $22 million.

Total earnings for the year were $121.9 million, a 45% increase over the prior year's annual earnings of $84.4 million.

The net loss for the quarter was $14.3 million, or $0.36 per share, compared to $16.8 million, or $0.42 per share, for the same period in 1996. Total net loss for the year was $45.6 million, or $1.14 per share; total net loss for 1996 was $55.1 million, or $1.40 per share.

PSINet also announced an increase of 3,400 customers, or 15%, for the fourth quarter 1997, reaching a total customer growth rate for the year at 48%.

"We're very pleased to have closed 1997 with a succession of important achievements that has put PSINet in a stronger strategic position going into 1998," said William L. Schrader, chairman, president, and chief executive officer.

"These include overwhelming support by our shareholders of PSINet's alliance with IXC Communications Inc.; our acquisition of iSTAR internet inc. in Canada; the acquisition of CalvaCom SA in France; the acquisition of the Swiss ISP Internet Prolink SA; and the funding of $30 million from PSINet's new convertible preferred stock issuance to SBC Warburg Dillon Read Inc., Lehman Brothers Inc., KA Investments, LDC, and Brown Simpson Asset Management, LLC."