"Our Data center services segment demonstrated significant growth and expanding margins, however our IP and CDN segments continued a trend of declining revenue and profitability," said Eric Cooney, President and Chief Executive Officer of Internap. "Thus, we implemented the previously announced cost reduction plan as a first step towards reversing this trend. We remain committed to our three business lines, IP, Data center and CDN services and are taking the steps necessary to simplify and focus these units on delivering long-term profitable growth."

First quarter 2009 revenue was $63.9 million; an increase of 3 percent compared with the first quarter of 2008. The year-over-year improvement was supported by a 21.6 percent increase in Data center services revenue as Internap leveraged solid market demand and its ability to deliver high-performance, high-reliability data center services. In the first quarter, Internap deployed 23,000 square feet in company-controlled facilities in Boston and New York, completing a 40,000 square foot data center expansion plan announced in June 2007. IP and CDN services revenue declined 8.1 percent and 17.9 percent, respectively, versus the first quarter of 2008, largely due to competitive pressure and related sales price erosion.

GAAP net loss for the first quarter of 2009 was $(6.6) million, or $(0.13) per diluted share compared with GAAP net income of $0.7 million or $0.01 per diluted share for the first quarter of 2008. First quarter 2009 GAAP net loss included a restructuring charge associated with the previously-announced workforce reduction, which totaled $0.9 million. Normalized net loss1 and normalized net loss per diluted share1, which exclude the impact of this restructuring charge and non-cash, stock-based compensation expense, was $(3.7) million, or $(0.07) per fully-diluted share in the first quarter 2009.

Total segment gross profit1 was $28.3 million, a decrease of 7.9 percent versus the first quarter 2008. Sequentially, segment gross profit1 declined 1.1 percent. Total segment gross margin1 was 44.2 percent in the first quarter of 2009, a decrease of 530 basis points from 49.5 percent in the first quarter of 2008. Compared with the fourth quarter 2008, total segment gross margin1 declined 30 basis points. Per-unit pricing declines in IP and CDN services, as well as lower year-over-year CDN traffic, contributed to the declines.

Adjusted EBITDA1 in the first quarter of 2009 was $4.5 million, a decrease of $5.1 million over the first quarter 2008. Compared with the fourth quarter 2008, adjusted EBITDA1 decreased $4.7 million. Adjusted EBITDA margin1 declined 840 basis points year-over-year to 7 percent. Sequentially, adjusted EBITDA margin1 fell 730 basis points. Higher operating costs and lower total segment margins compressed adjusted EBITDA margins1 compared with both the prior quarter and the first quarter 2008. First quarter 2009 cash operating expense included one-time costs of $1.4 million associated with Internap's CEO transition.

Internap ended the quarter with $55.5 million in cash and short-term investments compared with $54.1 million at the end of the fourth quarter of 2008. Total debt, including capital lease obligations was $23.4 million in the first quarter 2009, approximately flat with the previous quarter's outstanding balance.

In the first quarter 2009, Internap changed its method of counting customers. Under the previous approach, Internap counted customers that were invoiced for at least one full month in the quarter. This method also included customers that purchased only Internap's FCP hardware product, which typically has a large non-recurring component, and new customers in the period that had signed contracts but had not yet been invoiced. Beginning in the first quarter 2009, Internap began to count only recurring-revenue customers that maintain service in the final month of each quarter, thereby excluding customers that were billed in at least one month of the quarter but disconnected prior to the last month of the quarter, new customers that sign contracts in the quarter but are not yet billed, and customers that purchase only FCP. This conversion provides management and investors with a clearer view of per-customer revenue trends. Historical customer count using the new methodology along with additional operational metrics can be found in a supplementary data schedule from Internap's Website at http://ir.internap.com/results.cfm.

Internap had 3,174 customers under contract in the first quarter of 2009, a net decrease of 137 customers compared with the fourth quarter 2008 using the new customer count method. The percentage of customers purchasing more than one service from Internap increased to 45 percent in the first quarter of 2009 from a comparable 42 percent in the fourth quarter 2008.

1 Presentation of non-GAAP information and reconciliations to GAAP information contained in this press release are provided in the tables below entitled "Reconciliation of Net (Loss) Income to Adjusted EBITDA," "Reconciliation of Net (Loss) Income and Basic and Diluted Net (Loss) Income Per Share to Normalized Net (Loss) Income and Basic and Diluted Normalized Net (Loss) Income Per Share" and "Segment Gross Profit and Segment Gross Margin." This information is also available on Internap's Web site under the Investor Services heading.

Conference Call Information:

Internap's first quarter 2009 conference call will be held today at 5:00 p.m. EST. Participants may access the call by dialing 888-230-5495. International callers should dial 913-312-1412. Listeners may also connect to the simultaneous webcast available from the investor relations section of Internap's Website at http://ir.internap.com/events.cfm. A replay of the call will be accessible from Thursday, May 7, 2009 at 8 p.m. EDT through Wednesday, May 13, 2009 at 888-203-1112 using the replay code 4345407. International callers can access the archived event at 719-457-0820 with the same code.

About Internap

Internap is a leading Internet solutions company that provides The Ultimate Online Experience by managing, delivering and distributing applications and content with 100 percent performance and reliability. With a global platform of data centers, managed Internet services and a content delivery network (CDN), Internap frees its customers to innovate their business, improve service levels, and lower the cost of IT operations. More than 3,000 companies across the globe trust Internap to help them achieve their Internet business goals. For more information, visit www.internap.com.

Internap "Safe Harbor" Statement

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Because such statements are not guarantees of future performance and involve risks and uncertainties, there are important factors that could cause Internap's actual results to differ materially from those in the forward-looking statements. These statements include Internap's ability to sustain profitability; its ability to respond successfully to technological change and the severe economic downturn, which has required them to continue to lower the cost of its products; the availability of services from Internet network service providers or network service providers providing network access loops and local loops on favorable terms, or at all; failure of third party suppliers to deliver their products and services on favorable terms, or at all; failures in its network operations centers, data centers, network access points or computer systems; and its ability to protect its intellectual property, as well as other factors discussed in Internap's filings with the Securities and Exchange Commission. Internap undertakes no obligation to revise or update any forward-looking statement for any reason.

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INTERNAP NETWORK SERVICES CORPORATION NON-GAAP (ADJUSTED) FINANCIAL MEASURES

In addition to providing financial measurements based on generally accepted accounting principles in the United States of America (GAAP), Internap has historically provided additional financial measures that are not prepared in accordance with GAAP (non-GAAP), including adjusted EBITDA, normalized net (loss) income, normalized diluted shares, segment gross profit and segment gross margin. The most directly comparable GAAP equivalent to adjusted EBITDA and normalized net (loss) income is net (loss) income. The most directly comparable GAAP equivalent to normalized diluted shares is diluted common shares outstanding. Segment gross profit is disclosed in the notes to our financial statements.

We define non-GAAP measures as follows:

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             ?  Adjusted EBITDA is net (loss) income plus restructuring, stock-based compensation expense, depreciation and amortization, provision (benefit) for income taxes and interest expense (income), net.