PSINet Inc. Announces the Commencement of an Exchange Offer for Its 10% Senior Notes Due 2005

HERNDON, Va., May 7 /PRNewswire/ -- PSINet Inc. (Nasdaq: PSIX), a leading global facilities-based provider of Internet services and related products to businesses, today announced that it was commencing effective at 12:01 a.m., Eastern time, on May 8, 1998, an offer to exchange its 10% Senior Notes due 2005, Series B (the "Exchange Notes"), which have been registered under the Securities Act of 1933, as amended (the "Securities Act"), pursuant to, and subject to the conditions set forth in, a Prospectus dated May 7, 1998 (the "Prospectus") and related Letter of Transmittal, for its outstanding 10% Senior Notes due 2000, Series A (the "Initial Notes"), which have not been registered under the Securities Act.

The exchange offer provides that holders of the Initial Notes will receive $1,000 principal amount of Exchange Notes for each $1,000 principal amount of Initial Notes exchanged prior to the expiration date of 5:00 p.m., Eastern time, on June 8, 1998 (unless extended by PSINet in its sole discretion). The Exchange Notes will evidence the same debt as the Initial Notes (which they replace) and will be issued under, and be entitled to the benefits of, the Indenture dated as of April 13, 1998 between PSINet and Wilmington Trust Company, as Trustee, which governs both the Initial Notes and the Exchange Notes.

As of May 7, 1998, $600,000,000 aggregate principal amount of the Initial Notes were outstanding.

A copy of the Prospectus may be obtained without charge by holders of Initial Notes by contacting Kelli Harrington Nemer, Manager, Investor Relations of PSINet, at 510 Huntmar Park Drive, Herndon, Virginia 20170 or at 703-904-4100, ext. 1245, or e-mail, harringtonk@psi.com.

About PSINet

PSINet is a global facilities-based Internet Protocol (IP) data communications carrier focused on the business marketplace. As the first and largest independent commercial Internet service provider in the world, PSINet offers a broad set of high-speed corporate LAN connectivity services supporting managed security and guaranteed Internet, intranet, electronic commerce, Web hosting services, and services for other carriers and ISPs. PSINet operates an international state-of-the-art frame relay-based, IP- optimized network connecting to ISDN, ATM, SMDS, and wireless/satellite systems, serving over 33,000 corporate accounts with over 400 points of presence extending to 10 countries.

Headquartered in Herndon, VA, PSINet has subsidiaries in Canada, Japan, Belgium, France, Germany, Italy, the Netherlands, Switzerland, and the UK. For more information, contact PSINet by telephone at 703-904-4100, by e-mail at info@psi.com, or by accessing the Web site at http://www.psi.net.

SOURCE PSINet Inc.

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/CONTACT: Kelli Harrington Nemer, Manager, Investor Relations, 703-904- 4100, ext. 1245, e-mail, harringtonk@psi.com; Michael P. Binko, APR Manager, Public Relations, 703-904-4285, e-mail, binko@psi.com; both of PSINet/

/Web site: http://www.psi.net/

(PSIX)

CO: PSINet Inc. ST: Virginia IN: CPR SU: OFR

JO -- DCTH060 -- 1050 05/07/98 18:34 EDT http://www.prnewswire.com