PSINet Continues Global Expansion in Latin America

PSINet Inc. Monday acquired Argentina On-Line, one of that nation’s largest privately-held Internet providers.

The purchase follows PSINet’s acquisitions of three Brazilian and two
Mexican ISPs earlier this year. The new deal furthers the company’s plans
to play a significant role in providing Internet access to the top twenty
telecommunication markets globally.

Argentina On-Line serves both businesses and consumers with dedicated and
dial-up connectivity as well as Web hosting and e-commerce capabilities.
The company provides local dial-up services from points-of-presence in more than 60 cities throughout the country.

Argentina On-Line currently provides Internet services to a number of
multinational corporations and more than
20 embassies and government agencies nationwide.

Philippe Kuperman, PSINet Latin America president, said the regional market
is ripe for expansion and PSINet is prepared to play a major roll in the

“Internet usage in Argentina is poised for rapid growth. Recent studies
show the number of Spanish-speaking people online worldwide is expected to
double in 1999, from 14 million users to 34 million by the end of the
year. This is an opportune time for us to lay a strong
foundation in this important market.”

Current economic opportunities abound in Argentina as the country continues
to deregulate utilities and privatize railway systems.

Kuperman said the cost of telephone service in Argentina is expected
to decline later this year and that demand for Internet services would
naturally expand as a result of reduced fees.

“With upcoming state telephone deregulation expected in November,
Internet usage will likely grow exponentially as related costs decline. We
intend to bring our full suite of Internet products and services to the
Argentine market.”

PSINet operates an international ATM-based network consisting of over 535
worldwide points-of presence. The company currently offers services in
Argentina, Belgium, Brazil, Canada, France,
Germany, Hong Kong, Italy, Japan, Luxembourg, Mexico, the Netherlands,
Republic of Korea, Switzerland, the United States, and the United Kingdom.

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