PSINet and Sallie Mae Solutions Announce Agreement to Deliver ASP Program to Higher Education Institutions

Business Wire, Oct 9, 2000

Business Editors/High-Tech and Education Writers

ASHBURN & RESTON, Va.--(BUSINESS WIRE)--Oct. 9, 2000

PSINet (NASDAQ: PSIX), the Internet Super Carrier, and Sallie Mae Solutions, a business processing and software systems division of Sallie Mae (NYSE: SLM), today announced that they have formed a business partnership to deliver an application service provider (ASP) program to schools and universities nationwide.

The ASP program is a complete enterprise resource planning (ERP) solution for an institution's financial, human resources and student administrative functions. Colleges using the program will have access to Sallie Mae Solutions' Exeter Student Suite, as well as Oracle's (NASDAQ: ORCL) Human Resources/Payroll and Financial Systems. Additional software solutions are expected to be added in the near future. Schools can choose to receive the full selection of services or selected administrative modules through the ASP offering.

Under terms of the agreement, PSINet will host Sallie Mae Solutions' new ASP technology, which supports a school's many business functions, including payroll, human resources, student services, financial accounting and other administrative processes. The new service will be hosted at PSINet's state-of-the-art facilities around the country, where PSINet will manage Sallie Mae Solutions' ASP servers, data base storage, 24x7 security, and uninterruptible power supply to the web site. PSINet also will connect the ASP service to the Internet through its fiber optic backbone.

"We are delighted to partner with PSINet, the premier provider of hosted ASP services. Our research has shown that many schools are beginning to look to the new ASP model of delivering technology in a "rent" vs. "buy" model," said Thomas A. Green, president of Sallie Mae Solutions. "Schools recognize the opportunity to manage technology costs, deliver first-rate technology solutions, and remain competitive while focusing on their core business of education, research and community service."

Sallie Mae Solutions was created to provide software systems and business-processing solutions for colleges and universities. The company has already begun delivering electronic bill presentment and payment solutions to higher education customers, and will extend these ASP offerings with PSINet.

"PSINet welcomes this partnership with Sallie Mae to help the higher education community streamline its administrative operations," said John Kraft, president of PSINet's U.S. Northeast Region. "The Internet is the perfect venue for the outsourced ASP model that Sallie Mae is offering higher education institutions. Customers expect reliability and security, and we are prepared to deliver just that to colleges and universities with hardened web hosting facilities and technical ASP expertise."

About Sallie Mae

Sallie Mae, founded 27 years ago, provides funds for educational loans, primarily federally guaranteed student loans originated under the Federal Family Education Loan Program (FFELP). The company currently owns and manages student loans for 5.3 million borrowers and also provides parents, students and educators with comprehensive information on the financial aid process. Through its specialized subsidiaries and divisions, Sallie Mae also provides an array of consumer credit loans, including those for lifelong learning and K-12 education, and business and technical outsourcing services for colleges and universities nationwide. USA Education Inc. and its subsidiaries other than the Student Loan Marketing Association are not sponsored by or agencies of the United States. More information about Sallie Mae is available at http://www.salliemae.com.

About PSINet

Headquartered in Ashburn, Va., PSINet is an Internet Super Carrier offering global e-commerce 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, satellite, web hosting and switching facilities, providing direct access in more than 900 metropolitan areas in 28 countries on five continents. PSINet information can be obtained by e-mail at info@psi.com, by accessing the web site at www.psinet.com, or by calling in the U.S. (800) 799-0676.