Barrack Rodos Files Class Action Lawsuit Against PSINet, Inc.

Business Editors/Legal Writers

PHILADELPHIA--(BUSINESS WIRE)--Dec. 14, 2000

Counsel for Class Plaintiff, Barrack, Rodos & Bacine, today issued the following:

A class action has been commenced in the United States District Court for the Eastern District of Virginia on behalf of all persons who purchased the common stock of PSINet, Inc. (NASDAQ:PSIX) ("PSINet" or the "Company") between May 9, 2000 and November 2, 2000, inclusive (the "Class Period").

To sign up online: http://www.barrack.com/NewCases/NewCases.htm.

The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between May 9, 2000, and November 2, 2000. For example, as alleged in the complaint, on August 8, 2000, PSINet issued a press release announcing a 125% revenue growth in the Company's second quarter of 2000 over the comparable 1999 quarter, and boasted of the Company's growing international web-hosting presence.

On September 15, 2000, PSINet publicly advised the investing community that (among other things) its revenue for the second half of 2000 will triple from the same period in 1999, and that the Company will attain profitability. The Company also noted that its guidance took into account expected softness and slower growth in some of its market segments. The statements are alleged to have been materially false and misleading because the Company was experiencing severe operational difficulties in executing its strategy, and because their statements of growth were lacking in any reasonable basis when made.

On November 2, 2000, PSINet issued a press release announcing the resignation of its president, a planned dramatic restructuring of the Company, and fourth quarter results well below its prior guidance. In response to this announcement the price of PSINet common stock plummeted by more than 55%.

The plaintiff seeks to recover damages on behalf of all purchasers of PSINet common stock during the Class Period. He is represented by the law firm of Barrack, Rodos & Bacine, which has extensive experience in prosecuting investor class actions involving financial fraud. Barrack, Rodos & Bacine has prosecuted securities, antitrust and consumer class actions for over 20 years. The firm has offices in Philadelphia, San Diego, New York, Boston and New Jersey and has been designated lead counsel by federal and state courts across the country in large, complex cases. For more information about Barrack, Rodos & Bacine, please visit their website at www.barrack.com.

If you are a member of the Class described above, you may, no later than January 2, 2001, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.

If you wish to discuss this action or have any questions concerning this case or your rights or interests, please contact Maxine S. Goldman, Shareholder Relations Manager, at Barrack, Rodos & Bacine, 3300 Two Commerce Square, 2001 Market Street, Philadelphia, PA 19103, at 800/417-7305 or 215/963-0600, fax number 888/417-7306 or 215/963-0838 or by e-mail at [e-mail].