CABLE & WIRELESS STATEMENT

Thu Jun 7 16:49:00 UTC 2001

CABLE & WIRELESS STATEMENT

As part of the review of our current peering arrangements, last
Saturday (June 2nd), Cable & Wireless disconnected PSINet's peering
connections as they no longer meet our publicly stated peering
requirements (www.cw.com/us/peering).

Over the last few days, discussions have continued between Cable &
Wireless and PSINet to find a resolution to this issue for the benefit
of all parties. On June 5 PSINet agreed, through a letter of intent,
to meet Cable & Wireless' peering policy. PSINet has come forward with
new information that may demonstrate PSINet meets Cable & Wireless'
peering policy. As an expression of good faith, Cable & Wireless has
reestablished the peering connections with PSINet for a period of 60
days while the parties consider PSINet's new information and, if
applicable, negotiate in good faith a new peering agreement.

Peter Jansen
Cable & Wireless