NaviSite and PCCW Announce Strategic Alliance Plans; Companies To Offer Co-Branded Managed Web and Application Hosting Services in Hong Kong

Business Wire, Oct 3, 2000

Business/Technology Editors

ANDOVER, Mass.--(BUSINESS WIRE)--Oct. 3, 2000

NaviSite, Inc. (Nasdaq: NAVI) and Pacific Century CyberWorks (PCCW SEHK: 0008) today announced that the companies have signed a Letter Of Intent to enter into a strategic alliance to co-develop and provide co-branded managed application hosting services in Hong Kong and potentially other parts of Asia. PCCW will participate in the strategic alliance through a wholly-owned subsidiary, "PCCW-HKT Data Centre Services."

The two companies plan to work together to deploy and integrate NaviSite's world-class infrastructure, for delivering managed application hosting services, inside PCCW's Hong Kong data center facilities, thereby enabling PCCW's sales force to offer these co-branded services to their enterprise, SME, dotcom and ASP customers in the Hong Kong market.

NaviSite also plans to sell managed application hosting services, deployed in PCCW's Hong Kong data centers, to their U.S. based enterprise, software and Web-centric customers looking to expand into the Hong Kong marketplace. NaviSite customers moving into the Pacific Rim for the first time will be able to leverage PCCW's Powerb@se services to customize, localize and integrate their Web sites and back office services for addressing the needs of the Asian marketplace. In addition, NaviSite plans to support PCCW's North American customers, who have managed application services requirements, out of NaviSite's U.S. based internet data centers.

"The Asian markets are growing at a phenomenal rate and PCCW is poised to meet the rapidly growing demand for a variety of IP-based services," said Joel Rosen, president and CEO of NaviSite, Inc. "NaviSite's managed applications hosting expertise, combined with PCCW's leading position in the Hong Kong market, will enable our customers to offer highly sophisticated, dynamic Web sites to the growing Asian markets." NaviSite is recognized as the leader in managed application hosting services, said Joseph Ma, President of PCCW Data Centre and Hosting Services. "Partnering with NaviSite allows us to provide the Hong Kong market with superior services, while we jointly consider other opportunities in the Asia-Pacific region."

This alliance represents another step in NaviSite's strategic goal of working with world-class partners to provide customers with globally managed application hosting services. This approach will provide customers with access to world-class infrastructure, including high availability bandwidth and network performance, NaviSite's globally managed application hosting services, integrated with the resources to localize and rapidly deploy managed application solutions in local markets.

This relationship also furthers the strategic relationship between NaviSite's parent company, CMGI, and PCCW announced earlier this year to support the expansion of CMGI's operating companies into the Asian market. NaviSite joins fellow CMGI-affiliated companies who have recently announced working alliances with PCCW for the provision of technology products and services in Asia.

About NaviSite, Inc.

NaviSite, Inc., is a leading provider of outsourced Web hosting and application services for companies conducting mission-critical business on the Internet. The Company's goal is to help customers focus on their core competencies by outsourcing the management and hosting of mission critical Web sites and applications. NaviSite is a majority-owned operating company of CMGI, Inc. with minority investment from Microsoft Corporation.

NaviSite's solutions provide secure, reliable, co-location and high-performance hosting services, including high-performance Internet access, and high-availability server management solutions through load balancing, clustering, mirroring and storage services. In addition, NaviSite's enhanced management services, beyond basic co-location and hosting, are designed to meet the expanding needs of businesses as their Web sites and Internet applications become more complex and as their needs for outsourcing all aspects of their online businesses intensify. The Company's application services, which include application hosting, management and rental, provide cost-effective access to, as well as rapid deployment and reliable operation of, business-critical applications, including managed services for streaming media. For more information about NaviSite, please visit www.navisite.com or by phone on the East Coast call 888-298-8222, on the West Coast call 888-755-5525. NaviSite is headquartered at 400 Minuteman Road, Andover, MA 01810.

About Powerb@se

Powerbase is a Data Center service offered by Pacific Century CyberWorks, providing a reliable hosting platform designed to meet a wide range of corporate e-Business needs. It enables corporations to house mission-critical Internet servers/telecommunication equipment off-site, providing better security, connectivity, reliability, and immediate round-the-clock support. In addition, Powerbase supports both web and application hosting. Its infrastructure is managed through a regional network of Internet data centers in Hong Kong, Shanghai, Singapore, Taiwan and Korea.