ASHBURN, Va., Nov 16, 2000 (BUSINESS WIRE) -- PSINet Inc. (NASDAQ:PSIX), the
Internet Super Carrier, today announced that its board of directors has engaged
the investment banking firm of Goldman Sachs & Co. as its financial advisor.
 
PSINet has retained Goldman Sachs to assist PSINet in analyzing and considering
various financial alternatives available to it as well as exploring other
strategic considerations for improving shareholder value, which could include,
among other things, a strategic alliance or the possible sale of all or a
portion of PSINet.
 
PSINet announced also that its board of directors has formed a special committee
chaired by an independent director, Ralph J. Swett, to review and consider these
alternatives and to coordinate the engagement of Goldman Sachs.
 
"PSINet is pleased to retain Goldman Sachs as its financial advisor," said
William L. Schrader, chairman and chief executive officer of PSINet. "We have
taken a number of steps to position the company as the Internet Super Carrier.
With our valuable fiber and hosting center assets, our newly organized
management team, and the assistance of Goldman Sachs in helping us through our
current financial challenges, we believe that we are well positioned to move
forward in executing on our business plan. We remain committed to maximizing
shareholder value and believe that a review of all our options as we move
forward is appropriate."
 
Headquartered in Ashburn, VA, PSINet is the Internet Super Carrier offering
global e-commerce 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, satellite, web hosting
and switching facilities, providing direct access in more than 900 metropolitan
areas in 28 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.
 
This release contains information about management's view of the Company'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 the Company's
growth, the development of the Internet market, regulatory risks and other
factors that are discussed in the Company's Annual Report on Form 10-K and other
documents periodically filed with the SEC.
 
 
 CONTACT:          PSINet Inc.
                   Media Contact:
                   Robert Leahy, 703/726-1063
                   leahyr@psi.com
                   or
                   Doug Baj, 703/726-1431
                   or
                   Analyst Contact:
                   Kevin Libby, 877/990-PSIX
                   libbyk@psi.com