PSINet Completes Spin-Off of Inter.net Consumer Subsidiary
New Management Team to Concentrate on Emerging Internet Markets
ASHBURN, Va., Mar 2, 2001 (BUSINESS WIRE) -- PSINet Inc. (NASDAQ: PSIX chart, msgs) today announced it has completed the spin-off of Inter.net Global Ltd., a global consumer Internet Service Provider, to the Inter.net management team led by Kurt Baumann and David Browning. The transaction encompasses consumer and small business access and content activities in more than 15 countries. Terms of the transaction were not disclosed.
Inter.net was created by joining together all of PSINet's consumer Internet and portal businesses and is the only global consumer Internet Service Provider. PSINet will retain a minority ownership position in Inter.net Global. Baumann and Browning will co-head Inter.net Global combining Baumann's extensive Internet experience of the past 15 years and Browning's proven international management track record.
"PSINet is the leading global Internet service provider focusing on the needs of the corporate market. The transaction announced today completes our previously announced strategy to spin-off Inter.net, and allows us to focus our energies on PSINet's corporate customer base," said William L. Schrader, chairman and CEO of PSINet. "Kurt and David have demonstrated that they have the ability to make a success of this business. We wish them well and hope for their success."
Baumann and Browning initiated the spin-off of PSINet's consumer Internet activities over a year ago and were joined in the initiative by Gaige Paulsen, CTO of Inter.net and Jorge Forgues, CFO of Inter.net. Over the past nine months, these four Internet veterans have assembled a team of Internet entrepreneurs to lead each local operation. Many of these entrepreneurs sold their original Internet companies to PSINet and have now become part of the Inter.net global team.
"We believe the true strength of the Internet is its ability to connect people of similar interests regardless of where they are geographically, culturally, or otherwise," says Baumann. "We intend to focus on this as a theme, avoiding the `in your face' commercialism that has become so prevalent the past 5 years."
Inter.net Global has a business model founded on monthly subscriptions for quality access, ease of use, integrated tools (email, chat, instant messaging, etc.) and localized content via country specific portals.
"Our greatest market opportunities will be on maintaining or establishing leadership positions in the emerging Internet markets of Eastern Europe, Latin America, and South Asia," says Browning. "However, having our successful businesses in Japan, North America and Europe provides us with product and services experience very helpful in the emerging markets."
Headquartered in Ashburn, Va., PSINet Inc. is a leading provider of Internet and IT solutions offering flex hosting solutions, global eCommerce infrastructure, end-to-end IT solutions and a full suite of retail and wholesale Internet services through wholly-owned PSINet subsidiaries. Services are provided on PSINet-owned and operated fiber, web hosting and switching facilities currently providing direct access in more than 900 metropolitan areas in 27 countries on five continents. PSINet information can be obtained by e-mail at info@psi.com, by accessing the web site at www.psinet.com or by calling in the U.S. 800/799-0676.
Inter.net makes a difference in how people experience the Internet. Its customers place a high-value on their Internet service and choose Inter.net for its reliability, quality of service and the ability to deliver immediately on the promise of the Internet. Inter.net will continue delivering on this promise through the development of new dial-up and broadband access options across multiple platforms and devices. Inter.net will continue to innovate by investing our resources in appropriate Internet technology companies and service providers. For more information and to visit the world of Inter.net, please visit www.inter.net.
This release contains information about management's view of PSINet's future expectations, plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements, as a result of a variety of factors including, but not limited to, competitive developments, risks associated with PSINet's growth, the development of the Internet market, regulatory risks and other factors that are discussed in PSINet's Annual Report on Form 10-K and other documents periodically filed with the SEC.
Contact:
PSINet Inc.
Doug Baj, 703/726-1431
bajd@psi.com
or
Inter.net
Ivan Wong, 703/456-7526
ivan@team.inter.net
or
Planet Pitch
Debi Lichorowic, 540/687-8337
debi@planetpitch.com
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