FOR IMMEDIATE RELEASE

Media Contact:
Salah Yamout
Tel: ++961-1-799996 ext. 130
yamouts@psi.com

PSINet Lebanon and Al Mawarid Bank to Issue MasterCard Prepaid Internet Card

Beirut, Lebanon, June 29, 2000 - PSINet Lebanon, a wholly owned subsidiary of PSINet Inc. (NASDAQ: PSIX), the Internet Super Carrier, today announced an agreement with Al Mawarid Bank (AMB) to jointly issue a MasterCard Prepaid Internet Card. The card will allow AMB credit card customers to securely execute transactions and check account balances online. The cards are prepaid thereby minimizing any fraud abuse.

Under the agreement, PSINet will provide dial-up Internet access over its global network to AMB credit card customers. AMB plans to launch the new prepaid Internet card, entitled "NetShopper" in July 2000 to more than 10,000 of its credit card holders and 40,000 bank account holders.

"The agreement with AMB is important to PSINet because it gives us a strong alliance with a major credit card institution, which is also a pioneer in Internet banking in Lebanon," said Imad Tarabay, vice president of sales and marketing for PSINet Middle East and North Africa. "With the additions of Transaction Solutions and PSINet Consulting Solutions, PSINet is leading the way in developing the e-banking infrastructure in the Middle East and Africa region."

"Our alliance with PSINet will enable us to offer our clients the ability to access their balance statements through the Web, whenever and wherever they want," said Marwan Kheireddinne, deputy general manager of AMB. "Prospects will have an opportunity to apply on-line for this service, and will benefit from having world-class Internet access provided by PSINet/LYNX Internet. This is the first step to providing other e-banking solutions, and we hope to work jointly with PSINet in the future."

PSINet Lebanon will also develop ABM's web page, on-line access of card and bank account statements, and in the future, develop a complete e-banking solution. The terms of the agreement were not disclosed.

"We are pleased to announce the jointly issued MasterCard "NetShopper" prepaid Internet card with Al Mawarid bank," said Raed H. Rayes, general manager of PSINet Lebanon. "This deal with Bank Al Mawarid proves again our commitment to developing IT solutions in Lebanon and in the Middle East, especially in the fields of e-commerce and e-banking, which PSINet has abundant expertise"

Headquartered in Ashburn, Va., PSINet is an Internet Super Carrier offering global eCommerce infrastructure and a full suite of retail and wholesale Internet services through wholly-owned PSINet subsidiaries. Services are provided on PSINet-owned and operated fiber, satellite, web hosting and switching facilities providing direct access in more than 900 metropolitan areas in 29 countries on five continents. PSINet information can be obtained by e-mail at info@psi.com, by accessing the web site at www.psinet.com or by calling in the U.S. (800) 799-0676. Additional information about PSINet Lebanon can be obtained by accessing the Web site at www.psinetlebanon.com or by calling ++961-1-799996.

Headquartered in Beirut with a total of ten branches distributed throughout the Lebanese territories, Al-Mawarid Bank SAL is a commercial bank with strong emphasis on retail operations. With a young and dynamic team, the bank is well equipped to face competition and implement strategies. Operating on the retail-friendly information and electronic processing system-Kapiti, Al-Mawarid Bank SAL is launching a variety of new retail/consumer banking products. Additional information about Al-Mawarid Bank can be obtained by calling ++961-1-746745 or by accessing the web site at www.almawarid.com or by e-mail at mail@almawarid.com .