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FOR IMMEDIATE RELEASE

CONTACT:

           
Jon Boroshok
Poppe Tyson
201-539-0300
jborosho@nj.poppe.com
jb@pipeline.com

PIPELINE OFFERS VIRTUAL NEIGHBORHOODS THROUGHOUT THE US

HERNDON, VA, October 3, 1995--Pipeline, a Performance Systems International (PSINet), Inc. (NASDAQ: PSIX) company, today announced plans to develop "virtual neighborhoods" across the U.S. featuring local content and discussion groups focused on major metropolitan areas.

The newly-created local content and online communities will be incorporated into the award-winning national Internet online service. This ambitious strategy makes Pipeline the first service to establish a local online presence in multiple cities nationwide.

The model for the local content service is Pipeline\NY, which since 1993 has offered subscribers ground-breaking Internet access software and has fostered a vibrant online community with news, information and discussion about New York. PSINet purchased Pipeline\NY last February and launched it as a nationwide service in July.

Pipeline is committed to launch the local service in four cities by the end of the year. Boston, Atlanta, Dallas, Washington, D.C., Los Angeles, Chicago and San Francisco will be among the cities targeted. Additional areas with a high concentration of Internet or online users will be considered for the service in the future.

"Until now, there's been no broad national effort to offer true local content or to cultivate the sense of local community people appreciate," said Kurt Baumann, vice president of consumer services for PSINet. "Instant access to worldwide information has become a way of life for millions of people, but everyone still wants local scores, local event listings and a sense that they have a home on the Internet-that is what we will provide."

Pipeline will offer subscribers in the designated metropolitan areas online content consisting of original local information and news. The service will also introduce thought-provoking newsgroup discussions facilitated by Pipeline moderators, with special appearances by newsmakers and celebrities. In creating this content, Pipeline will draw on the experiences of Pipeline\NY, the largest New York City-based Internet access provider.

"We're not taking a national online service and trying to turn it into a collection of local content areas," said Edward Nadeau, General Manager of Pipeline\NY. "We want to build online communities from the ground up just like we have here in New York. Our service reflects the culture and character of the tri-state metropolitan area and we hope to replicate this atmosphere for customers in other cities."

Virtual neighborhood editors will eventually be located in the major cities served by Pipeline providing an important local presence and a physical, as well as creative, connection to that city.

In New York, the local content currently includes discussion groups that range from politics, the arts and lifestyles to food, business and whimsical gossip. Pipeline\NY also provides a variety of entertainment, restaurant, employment, government and sports listings as well as wire services that focus on news about New York and custom applications enabling subscribers to take online classes at the New School For Social Research.

Last August, Pipeline\NY joined forces with the Authors Guild, one of the nation's largest organizations representing writers, to host a discussion group for the New York area's many writers. The online chats feature appearances by members of The Authors Guild, whose board of directors includes such well-known authors as Mary Pope Osborne, Scott F. Turow, Michael Crichton and Mary Higgins Clark.

Pipeline's current local content will be expanded to include information on local cultural institutions, concerts, sports teams, employment listings, real estate listings, online town halls, and online curriculum from local educational institutions. The local content service will seek suggestions for additional content from online communities.

The local content service will be available at no extra charge above the current flat monthly fee of $19.95.

"Other online services charge by the hour for Internet access and proprietary information," Baumann said. "The Internet offers far more information than any commercial service can. Pipeline will offer original content, yet we will still maintain a flat rate for unlimited, unrestricted full Internet access."

Pipeline recently announced that Winsock compliance and a personal home page authoring tool will be added to the service later this month. These two additions will allow subscribers to select additional Internet applications including popular web browsers and create their own personal home pages. Headquartered in Herndon, VA, with an office in New York City, Pipeline is the nation's first Internet online services that offers unlimited Internet access 24 hours a day, 7 days a week at a flat rate ($19.95 per month). Pipeline software is available free by calling 1-800-453-PIPE (7473). Pipeline was recently awarded the "Editors' Choice" by PC Magazine as an excellent package for new users.

PSINet has defined industry standards and is a leader in technological innovation and new service development. The company has its headquarters in Herndon, Va., with sales and service offices across the U.S., Cambridge, England and Tokyo, Japan. PSINet is a publicly-held company trading under the PSIX symbol on the NASDAQ exchange. Further product availability and pricing information can be obtained by calling 703/904-4100; through PSINet's Web site at http://www.psi.net; or by sending an e-mail request to info@psi.com.

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