HP And PSINet Announce Global Strategic Alliance to Deliver Integrated Solutions and Internet Reliability for Mission-critical Applications.

PALO ALTO, Calif., and HERNDON, Va.--(BUSINESS WIRE)-- June 23, 1998--

PSINet's Dedicated Hosting Services to Utilize on HP Servers, Management Solutions and Mission-critical Technologies

Hewlett-Packard Company and PSINet today announced a long-term, global, strategic alliance to provide businesses using the Internet with an integrated package of software, hardware and network-management services to support dedicated hosting of mission-critical applications. PSINet's newest PSIWeb Dedicated Hosting services are standardized on HP servers, management solutions and mission-critical technologies. The alliance, while not an exclusive relationship, is the first of this magnitude for both companies in this market.

This new alliance is being forged to meet the growing demand for higher performance, predictability and reliability by enterprise business customers who need to outsource the management of their critical Internet applications.

Because businesses increasingly rely on the Internet and hosting solutions for their critical applications, any downtime, unexpected delays and service failures cut into the bottom line. The new alliance is a major step in the companies' shared initiative to solve the problem of reliability associated with hosting critical applications on the Internet and to establish the Internet as a secure information utility for businesses to expand operations, reduce overall costs and increase profitability.

Initially the alliance will offer PSINet's family of new, dedicated-hosting services on HP-UX(1) and Windows NT(R) system servers, the HP OpenView management system and HP's mission-critical technologies. The HP and PSINet service package is available immediately in the United States. It is expected to be available in international markets as PSINet completes an expansion program of global data-center facilities in key markets, such as Toronto, London and Amsterdam.

The alliance combines the expertise of two leaders in Internet services and technology to offer a standardized global solution. PSINet's Herndon, Va.-based data center currently is being expanded to be outfitted with several classes of dedicated UNIX(R) system HP 9000 Enterprise Servers and dedicated Windows NT-based HP NetServer systems to offer customers a choice of service levels. HP system servers offer a high level of scalability to meet explosive growth of demand on the Web and unmatched reliability to reduce service downtime. In addition, PSINet believes that HP's Web Quality of Service (QoS) technologies may be integrated to help establish a robust and reliable infrastructure that will further enhance PSINet's service offerings with peak-user management, user-class prioritizing and service-class prioritizing solutions.

"We are very excited to be working closely with one of the world's largest and most respected ISPs," said Nigel Ball, general manager for HP's Internet and Application Systems Division. "The alliance with PSINet is a major step in our efforts to make the Internet a more reliable and predictable utility for critical applications that will allow businesses to expand their operations."

During the last six months, HP and PSINet have been working closely with several PSINet customers to test and refine a variety of new dedicated-hosting services on HP servers. Among these customers is ICQ, a division of Israel-based Mirabilis, whose Web site currently ranks as the fourth-most-popular site in the world, with approximately 13 million users.

"HP brings unique value and expertise to our alliance," said Michael Mael, PSINet vice president for Applications and Web Services. "HP is committed to providing superior solutions and is willing to work with us to develop technologies to meet customer needs in this rapidly evolving market."

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 about PSINet and its PSIWeb Dedicated Hosting products, contact PSINet by telephone at 703-904-4100, by e-mail at [e-mail], or by accessing the Web site at http://www.psi.net.

ABOUT HP

HP is the official information-technology hardware and maintenance supplier to the 1998 World Cup soccer tournament.

Hewlett-Packard Company is a leading global provider of computing, Internet and intranet solutions, services, communications products and measurement solutions, all of which are recognized for excellence in quality and support. HP has 125,300 employees and had revenue of $42.9 billion in its 1997 fiscal year.

Information about HP and its products can be found on the World Wide Web at http://www.hp.com.

(1) HP-UX Release 10.20 and later and HP-UX Release 11.00 and later (in both 32 and 64-bit configurations) on all HP 9000 computers are Open Group UNIX 95 branded products.

UNIX is a registered trademark of The Open Group.

Windows NT is a U.S. registered trademark of Microsoft Corp.

    CONTACT: Cunningham Communication for HP
              Linda Horiuchi, 650/858-3743
              [e-mail]
                   or
              PSINet
              Mike Binko, 703/904-4285
              [e-mail]