FOR IMMEDIATE RELEASE: CONTACT:
July 06, 2000 InterNAP Contacts:
Media Relations
Bill Hankes
InterNAP Network Services
(206) 262-3737
bhankes@internap.com
Investor Relations
Paul Mondschein
InterNAP Network Services
206 504-5487
pmondschein@InterNAP.com
INTERNAP TO ADD VPN TECHNOLOGY EXPERTISE TO ITS RANKS THROUGH THE
PLANNED ACQUISITION OF VPNX.COM
SEATTLE, WA, JULY 06, 2000 - InterNAP Network Services Corporation (NASDAQ:
INAP), the provider of high-performance Internet routing technology, announced
today the signing of a definitive agreement to acquire VPNX.com, Inc., a Redwood
City, CA-based developer of Virtual Private Network (VPN) technology.
Under the terms of the agreement, approximately 2.3 million shares of
InterNAP common stock would be exchanged for all outstanding shares and
rights to acquire shares of VPNX.com's capital stock. The acquisition has
been approved by the boards of directors of both companies and is expected to
close by the end of the third quarter of 2000. This transaction is subject to
certain closing conditions, including approval by VPNX.com's stockholders.
"Our P-NAP platform offers a practical solution for end-to-end quality data
transit over the public Internet, regardless of which major backbones are the
networks of origin or destination," said Tony Naughtin, President and CEO of
InterNAP Network Services. "The acquisition of the VPNX.com team gives us the
talent to develop secure VPN technology for our P-NAP platform, and
complements our strong relationship with Aventail, a leading service provider
for building and managing business partner networks."
"As more corporate communication migrates to the public Internet, fast,
reliable and secure means need to be developed in order to transmit this data
across the networks which make up the Internet," said Tyrone Pike, President,
CEO & Chairman of VPNX.com. "The only major barrier to quality transit over
the public Internet is peering, the process by which one network exchanges
traffic with another. InterNAP is the only company solving this problem, and
for that reason we are teaming with them to realize our vision of end-to-end
quality of service over the public Internet."
According to Morgan Stanley Dean Witter, the still-nascent Virtual Private
Network market will grow significantly from an estimated $1.8 billion this
year to $44 billion by 2009.
InterNAP's patented service routes data to and from businesses across the
Internet in a manner that minimizes data loss by avoiding the Internet's
conventional traffic exchange process known as "peering." Private and public
"peering" arrangements between backbone providers lead not only to congestion
at peering points, but also to routing inefficiencies, two factors that
significantly reduce the speed of data transmission across the Internet.
InterNAP's P-NAP-Registered Trademark- facilities and ASsimilator-TM-
technology orchestrate the routing of mission-critical data in a faster, more
reliable, and more managed fashion than conventional Internet technology.
# # #
ABOUT INTERNAP
Founded in 1996 in Seattle, InterNAP provides Internet connectivity that is
faster and more reliable than conventional Internet service. InterNAP's
patented route management technology provides direct data transmission across
the major Internet backbones through a single connection from a customer's
network to one of InterNAP's P-NAP facilities. InterNAP's customers bypass
congestion points on the Internet,
avoiding packet loss, latency, and other difficulties that can plague
conventional Internet connectivity. InterNAP services are currently available
in numerous key markets throughout the United States including Atlanta,
Chicago, Los Angeles, New York, San Jose, and Seattle. Major companies and
networks served by InterNAP include Amazon.com, Datek Online, Go2Net, ITXC,
MindSpring, The NASDAQ, TheStreet.com, WebTV, and many others.
InterNAP-Registered Trademark- and P-NAP-Registered Trademark- are registered
trademarks of InterNAP. For more information, visit www.InterNAP.com.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995: THIS RELEASE MAY CONTAIN FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS
AND UNCERTAINTIES. THESE STATEMENTS MAY DIFFER MATERIALLY FROM ACTUAL FUTURE
EVENTS OR RESULTS. READERS ARE REFERRED TO THE DOCUMENTS FILED BY INTERNAP
WITH THE SEC, SPECIFICALLY THE MOST RECENT FILINGS OF INTERNAP ON FORM S-1
AND INTERNAP'S PERIODIC REPORTS, WHICH IDENTIFY IMPORTANT RISK FACTORS THAT
COULD CAUSE ACTUAL RESULTS TO DIFFER FROM THOSE CONTAINED IN THE
FORWARD-LOOKING STATEMENTS, INCLUDING, AMONG OTHER THINGS, INTERNAP'S HISTORY
OF OPERATING LOSSES, EXPECTED FUTURE LOSSES, INTERNAP'S LIMITED OPERATING
HISTORY, FLUCTUATIONS IN INTERNAP'S QUARTERLY OPERATING RESULTS, DEPLOYMENT
OF NEW P-NAP FACILITIES AND RAPID TECHNOLOGICAL AND MARKET CHANGE. ADDITIONAL
FACTORS THAT COULD CAUSE OR CONTRIBUTE TO SUCH DIFFERENCES INCLUDE, BUT ARE
NOT LIMITED TO, RISKS RELATING TO THE CONSUMMATION OF THE CONTEMPLATED
ACQUISITION TRANSACTION, INCLUDING THE RISK THAT REQUIRED REGULATORY
CLEARANCES OR STOCKHOLDER APPROVALS MIGHT NOT BE OBTAINED IN A TIMELY MANNER
OR AT ALL. IN ADDITION, STATEMENTS IN THIS PRESS RELEASE RELATING TO THE
EXPECTED BENEFITS OF THE CONTEMPLATED ACQUISITION TRANSACTION ARE SUBJECT TO
RISKS RELATING TO THE TIMING AND SUCCESSFUL INTEGRATION OF THE TECHNOLOGIES
AND FACILITIES OF INTERNAP AND VPNX.COM, UNANTICIPATED EXPENDITURES, CHANGING
RELATIONSHIPS WITH CUSTOMERS, SUPPLIERS AND STRATEGIC PARTNERS AND OTHER SUCH
FACTORS.