Predictive Networks/PSINet Announce Agreement

Predictive Networks Inc, a leading provider of highly targeted, personalized content delivery services, announced the completion of a multi-year strategic agreement with PSINet, the Internet Super Carrier.

Under terms of the agreement, PSINet will offer Predictive Networks' intelligent content delivery platform as an additional value-added component of PSINet's Virtual ISP and wholesale service offerings. These combined capabilities will offer more incentive for enterprise organizations or affinity groups to become virtual ISPs (VISPs). Predictive Networks provides this service on a revenue sharing model. PSINet will receive a majority of the revenue generated from this agreement.

Utilizing advanced artificial intelligence technology and adhering to a 100% opt-in policy, Predictive Networks analyzes subscribers' click-stream data to develop a Digital Silhouette - an in-depth understanding of each subscriber's individual interests and characteristics, identifiable only by a random, anonymous ID number. Predictive Networks uses Digital Silhouettes to match Internet content and advertising to appropriate subscriber recipients. Once the click-stream data is analyzed it is discarded. As a result, subscribers receive information that appeals to their current needs and interests, without compromising their privacy.

"With PSINet providing the network services and all the back-end support, and Predictive Networks providing revenue-generating profiling and content serving, we can now turn any organization into a virtual ISP," said Michael Skarzynski, CEO of Predictive Networks. "What's more, PSINet will be extending our services to all of their wholesale customers, enabling them to share in the lucrative e-commerce market."

"PSINet's alliance with Predictive Networks will enhance our VISP and wholesale offerings while giving us an opportunity to explore new revenue streams in our carrier services division," said Harry Lalor, vice president of wholesale and virtual ISP services. "Predictive Networks' technology is also very attractive to us because it addresses important privacy issues -- they do not compromise personal privacy or sell personal information to third parties."

PSINet's wholesale and private label programs provide comprehensive Internet solutions for Internet service providers and other companies seeking to offer carrier-class Internet services. The program enables these companies to offer PSINet's reliable, high quality and high speed Internet products and services under their own labels.

About PSINet

Headquartered in Ashburn, Va., PSINet is an Internet Super Carrier offering global eCommerce infrastructure 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 29 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.

About Predictive Networks

Predictive Networks is a privately-held leading provider of highly targeted, personalized content delivery services. Its patent-pending, artificial intelligence technology and network infrastructure make it possible for advertisers and other content providers to reach their desired audiences with unprecedented levels of precision. In delivering its services, the Company partners with service providers enabling them to generate additional revenue by delivering high-value, high-margin services such as online advertising.

Deployed on April 1, 2000, Predictive Networks has the capacity to accommodate more than two million subscribers. Within twelve months, network capacity will exceed ten million. Predictive Networks' services are available to ISPs, enterprise organizations and content providers including advertising agencies.

Predictive Networks Inc is located at 689 Massachusetts Avenue in Cambridge, Massachusetts. For more information please call 617-367-4700 or visit the company's Web site at www.predictivenetworks.com.

Contact Doug Baj of PSINet Inc, 703-726-1431, bajd@psi.com or Gus Bickford of Predictive Networks Inc, 617-367-4700, gus@predictivenetworks.com.