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PSINet Purchases Fiber, Three Hong Kong ISPs

PSINet Inc. Tuesday reached an agreement with Metromedia Fiber Network, Inc. to purchase dark fiber in California for additional bandwidth and also acquired three Hong Kong Internet companies.

Today's fiber announcement marks PSINet's sixth acquisition of fiber optic capacity. The dark fiber optic strands are to extend around the San Francisco Bay region and south to Silicon Valley. Cities served will include San Jose, Santa Clara and Hayward. The facility will also serve numerous other cities along its route.

Under the California bandwidth agreement, portions of the acquired capacity will be activated by the end of 1999 with full delivery expected in 2000. The fiber is expected to last around 20 years. The capacity will immediately be applied to anchor growth at existing PSINet service locations and U.S. termination points for Asia/Pacific data transport facilities.

Separately, PSINet acquired Hong Kong ISPs SpiderNet, HugeNet and AsiaNet. PSINet said the additions will further its goal of becoming a major commercial ISP in Hong Kong. All of the companies will be incorporated into an international Internet product line and use PSINet's fiber optic network in the Asia/Pacific region.

The company said combined with its previous acquisitions in Japan, Korea, and Hong Kong, it ranks as No. 1 or No. 2 in commercial market share in each of these countries.

Financial terms of the purchases were not disclosed.

"Our primary growth objectives are advanced by acquisitions of dark fiber capacity Internet and businesses that expand our presence in currently-served top 20 global markets," said William L. Schrader, chairman and chief executive officer of PSINet Inc.

"These network assets and business acquisitions accelerate and reinforce our aggressive growth strategy, build revenue and customer traffic on our network, and contribute to earnings before interest, taxes, depreciation and amortization (EBITDA).

PSINet continues on track to meet our objective of 100 percent revenue growth for 1998 through a mix of organic growth and acquisitions," Schrader said.