PSINet Inc. today announced that it has signed a letter of intent with an investment group led by Cori Capital Partners, L.P. and consisting of additional investors, including senior members of PSINet's Latin American management team, pursuant to which the investment group has offered to purchase PSINet's Latin American operations and facilities in Argentina, Brazil, Mexico and Uruguay.

The proposed purchase is subject to a number of conditions, including regulatory approval and approval under the bankruptcy proceedings.

PSINet expects that its operations in Argentina, Brazil, Mexico and Uruguay will continue to operate in the normal course of business, providing reliable services to its customers. PSINet's operating subsidiaries in Latin America are not part of the filing under Chapter 11 of the US Bankruptcy Code.

PSINet is considering strategic alternatives for its operations in Chile and is in discussions with a potential purchaser group. No assurance can be given that those discussions will result in a sale of PSINet's Chilean operations.