Wechsler Harwood Announces Class Action Against PSINet, Inc. On Behalf of Former Metamor Shareholders

Wechsler Harwood Halebian & Feffer LLP has been engaged to file a class action lawsuit against PSINet, Inc. and certain other defendants in the United States District Court for the Eastern District of Virginia on behalf of all investors who acquired the common stock of PSINet, Inc. ("PSINet" or the "Company") (NASDAQ: PSIX) through the Company's merger with Metamor Worldwide Inc. ("Metamor") which was consummated on or about June 16, 2000 (the "Merger").

Plaintiffs charge that PSINET and certain other defendants violated Sections 11, 12(a)(2) and 15 of the Securities Act of 1933, by issuing a materially false and misleading registration statement and prospectus in connection with the Merger. Plaintiffs allege that defendants overstated PSINet's results of operations and financial condition for the year ended December 31, 1999. Plaintiffs also allege that defendants failed to disclose the incomparability of the operations of Metamor and the state of the Company's true financial position and liquidity. Finally, plaintiffs allege that defendants misrepresented PSINet's overall revenue growth rate and business prospects particularly in regard to the Company's international web-hosting presence.

On November 2, 2000, PSINet issued a press release announcing the resignation of its president, a planned dramatic restructuring of the Company, and fourth quarter results well below its prior guidance. In response to this announcement the price of PSINet common stock plummeted by more than 55%.

Plaintiff seeks to recover damages on behalf of all investors who acquired PSINet securities in connection with the Merger and who suffered damages as a result. Plaintiffs are represented by Wechsler Harwood Halebian & Feffer LLP, which has extensive experience representing investors in class actions and has successfully recovered hundreds of millions of dollars for defrauded investors. The reputation and expertise of the firm in investor and other class action litigation has been repeatedly recognized by the courts, which have appointed the firm to major positions in complex class actions. For more information about Wechsler Harwood Halebian & Feffer LLP, please visit the firm's Web site at http://www.whhf.com/.

If you are a member of the Class described above, and if you meet certain other legal requirements, you may, no later than January 2, 2001 move the Court to serve as lead plaintiff.

If you would like to discuss this action or have any questions concerning this notice or your rights or interests with respect to this matter, please contact the following:

  Wechsler Harwood Halebian & Feffer LLP
  488 Madison Avenue, New York, New York 10022
  Telephone: 877-935-7400 (toll free)
  Patricia Guiteau , Shareholder Relations Department: pguiteau@whhf.com

SOURCE: Wechsler Harwood Halebian & Feffer LLP

Contact: Patricia Guiteau, Shareholder Relations Department of Wechsler
Harwood Halebian & Feffer LLP, 877-935-7400, pguiteau@whhf.com

Website: http://www.whhf.com/