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Press Release
October 3, 2000

NaviSite and PCCW Announce Strategic Alliance Plans

Companies to offer co-branded managed web
and application hosting services in Hong Kong


ANDOVER, Mass., October 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 Center 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 Powerbase 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 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.

Powerbase currently occupies 300,000 sq. ft. of floor space, housing mission-critical communications equipment and customized solutions in six world-class centers located throughout the territory. Bringing together its local capabilities and extensive regional coverage with existing data centers, Powerbase plans to extend its services to Beijing, Kuala Lumpur, Bangkok and Jakarta. Please visit www.pbase.net or call 852-2883-7628.

About Pacific Century CyberWorks (PCCW)

Pacific Century CyberWorks is the Hong Kong-listed technology flagship of the Pacific Century Group. PCCW is one the largest Internet companies in the world by market capitalization.

Focused on global growth, PCCW is developing a full spectrum of broadband Internet capabilities, and is aiming to become the premiere provider of telecommunications, digital technology and new media services. With the August 2000 Cable & Wireless HKT merger, the Company has developed an innovative 8 X 3 business model that runs eight business units within three operating sectors:

  • Telecommunications Services - Principally comprising telecommunications and other value-added services based on the Company's fibre-optic network in Hong Kong.
  • Global Communications Services - Mobility and global connectivity services
  • Net Enterprises - NOW, B2B business services, Data Center services and CyberWorks Ventures, which invests in synergistic core businesses.
  • Infrastructure Services directly supports all three sectors

This release contains forward-looking statements based on current expectations or beliefs, as well as a number of assumptions about future events, and these statements are subject to important factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The forward-looking statements in this release address a variety of subjects including, for example, the successful negotiation, completion and approval of each company's Board of Directors of definitive agreements between NaviSite and PCCW-HKT Data Center Services and the expected benefits resulting from any such definitive agreements NaviSite may enter into with PCCW-HKT Data Center Services. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: the risk that NaviSite's products and technologies will not successfully combine with those of PCCW-HKT Data Center Services, increased competition and technological changes in the markets in which NaviSite and PCCW-HKT Data Center Services compete and the need to obtain various Hong Kong governmental regulatory and other approvals. For a detailed discussion of these and other cautionary statements, please refer to the filings made by each of NaviSite and CMGI with the Securities and Exchange Commission, including the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q of each of NaviSite and CMGI for the most recently ended fiscal periods.

Media Relations Contacts:

Jay Seaton
NaviSite, Inc.
978.946.8651
jseaton@navisite.com
Joan Wagner
Pacific Century CyberWorks
852.2514.8883
joanwagner@pcg-group.com
Darby Johnson
Beaupre & Co. Public Relations, Inc.
603.559.5809
djohnson@beaupre.com

Investor Relations Contacts:

David Roy
NaviSite, Inc.
978.946.8643
droy@navisite.com
Simon Smith
Pacific Century CyberWorks
852.2883.0858
simon.r.smith@cwhkt.com