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Technology Stocks : Internap Network Services Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Jibacoa who wrote (420)	7/17/2002 9:29:36 AM
From: Jibacoa	Read Replies (1) \| Respond to of 1011

07.17.2002 Company Press Release Internap Names Atlanta for New Headquarters Strategic Realignment Strengthens Long-Term Growth. SEATTLE, WA, July 17, 2002 — Internap Network Services Corporation (NASDAQ: INAP) announced today the next significant step in its continued strategic realignment, the relocation of its corporate headquarters to the company’s flagship facility in Atlanta, Georgia. The strategic realignment, which commenced in early 2001, has been focused on expanding Internap’s product portfolio and increasing cost efficiencies, resulting in five consecutive quarters of decreasing EBITDA losses. Building on this momentum, Internap also reaffirmed its second quarter guidance and its projected EBITDA profitability during the fourth quarter of this year. “During our in-depth analysis of potential new locations, we considered four metropolitan areas each with a strong telecommunications presence. Among other benefits, the overall cost efficiencies of relocating headquarters to a facility with a pre-existing long-term lease, made Atlanta the best choice,” said Greg Peters, President and CEO of Internap Network Services. “With the availability of industry specific professionals as well as a business-friendly environment, Atlanta provides an ideal location for Internap’s continued and long-term growth and development.” Internap will be departing from its Seattle offices near the end of its lease at Two Union Square, and moving to its new headquarters, located at 250 Williams Street in Atlanta. Corporate operations will begin in Atlanta in October, and the transition will be completed by year’s end. Seattle will continue to be a key center of activity for Internap. The Seattle Network Operations Center will remain and serve as a parallel facility to a NOC that will be built in Atlanta. In addition, the Seattle collocation facility and supporting engineers will remain. As part of this realignment, Internap plans to reduce its current full-time equivalents from approximately 465 to approximately 330, resulting in a reduction of 135 positions over the next five months. The company also reiterated its second quarter guidance: Sequential increase in revenues;EBITDA losses in the range of $6.0 to $8.0 million; and Cash use for the second quarter to be in the range of $21.0 to $23.0 million, which includes a previously announced one-time payment as part of the restructured equipment lease agreement, with cash balance to be in excess of $40.0 million going into the third quarter. For more recent news on Internap, please visit www.internap.com/newsroom .