PSINet Inc. (OTC BB: PSIXE) today announced that it has signed a definitive share purchase agreement with an investment group led by iLatin Holdings and consisting of additional investors, including Chilean businessman, Jose Cox, pursuant to which the investment group has agreed to purchase PSINet's operations and facilities in Chile. The proposed purchase is subject to a number of conditions, including approval under the U.S. bankruptcy proceedings.

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

Headquartered in Ashburn, Va., PSINet Inc. is a leading provider of Internet and IT solutions offering flex hosting solutions, global eCommerce infrastructure, end-to-end IT solutions and a full suite of retail and wholesale Internet services through wholly-owned PSINet subsidiaries. Services are provided on PSINet-owned and operated fiber, web hosting and switching facilities, currently providing direct access in more than 900 metropolitan areas in 20 countries on five continents.

iLatin Holdings (iLH) is the leading operator and developer of e-business ventures throughout Latin America, with a rapidly growing international presence. iLH provides financing, e-Consulting and e-Building services to over 12 individual operating companies and continually evaluates and develop new projects, both internally and on behalf of its clients. Founded in 1999, its business is grouped into three fundamental Internet sectors: B2C and B2B businesses, Professional Services and Enabling Technologies.

This release contains information about management's view of PSINet's future expectations, plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995.

Actual results may differ materially from those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, the doubt as to PSINet's ability to continue as a going concern, risks associated with efforts to restructure the obligations of PSINet and Metamor, risks associated with proceedings commenced by PSINet and its subsidiaries under the U.S. Bankruptcy Code, competitive developments, risks associated with PSINet's growth, the development of the Internet market, regulatory risks, and other factors that are discussed in the Company's Form 10-K and other documents filed with the SEC.