PSINet Continues Global Expansion

PSINet Inc. announced Tuesday it has acquired 50,000 new subscribers in Puerto Rico and the greater Boston region.

The Internet provider Tuesday announced the acquisition
of privately-held Caribbean Internet
services. Based in San Juan, Puerto Rico, the deal will make PSINet Puerto Rico’s second-largest ISP. The deal is
PSINet’s first acquisition in the Caribbean region.

Caribbean Internet serves approximately 14,000 businesses and consumers
with dedicated and dial-up connectivity as well as Web hosting services.

Caribbean Internet serves approximately 30 percent of Internet users in
Puerto Rico. According to PSINet, approximately 494,000 of homes in Puerto
Rico currently have personal computers, although not all of the PCs have
Internet access.

John F. Kraft, president of PSINet’s U.S. Northeast region said Puerto
Rico’s strong economy gives it tremendous growth potential.

“PSINet’s global network, combined with the technology and customer service
expertise of Caribbean Internet will serve this market well,” said Carlo
Marazzi, president of Caribbean Internet. “We intend to grow significantly throughout Puerto Rico.”

PSINet also announced the acquisition of The Internet Access Company, a regional
ISP serving the Northeast. According to the company, TIAC is one of the ten
largest providers of direct Internet service to both organizations and
individuals in the U.S.

TIAC serves approximately 33,000 businesses and consumers with dedicated
and dial-up connectivity and web hosting services. The privately-held
access provider maintains 50 points-of-presence throughout Massachusetts, New Hampshire, Connecticut, Rhode Island, New York and New Jersey.

“The acquisition of TIAC builds upon PSINet’s existing customer and revenue
base while further strengthening U.S. regional and national market share,” Kraft said.

“While the majority of our recent acquisitions have occurred
outside the U.S., additional domestic purchases are planned consistent with
our ongoing strategy to achieve and reinforce premier positioning in the
world’s top 20 markets.”

Terms of both acquisitions were not disclosed.

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