2009-06-23 20:12:04 -

NaviSite, Inc. (NASDAQ:NAVI), a leading provider of Enterprise Cloud Services, Hosting Solutions and Application Management, announced today that The NASDAQ Stock Market has informed the Company that it has regained compliance with NASDAQ listing rules.

Today the Company received a letter from The NASDAQ Stock Market confirming that it has demonstrated a market value of listed securities over the required minimum

of $35 million for 10 consecutive trading days, for continued listing on The NASDAQ Capital Market under Listing Rule 5550(b) (formerly known as Nasdaq Marketplace Rule 4310(c)(3)), and that the NASDAQ Hearings Panel has determined to continue the listing of the Company's securities on The NASDAQ Stock Market.

The Company previously announced that its plan to regain compliance with the listing rules through execution of a strategic plan that includes the potential divestiture of colocation assets, a reduction of its overall debt burden, and an increased focus on the core managed hosting, application management and enterprise cloud solutions. The Company continues to pursue its strategic plan in order to improve the Company’s balance sheet by reducing its debt obligations and focus on its core businesses for growth and performance, although its completion is no longer required in order for the Company to comply with the NASDAQ continued listing rules.



About NaviSite

NaviSite is a leading provider of enterprise cloud services, hosting solutions and application management. It provides customized and scalable solutions leveraging its industry leading hosting and enterprise cloud infrastructure, and application life cycle management expertise. Over 1,500 customers depend on NaviSite for managed application services, application development, implementation and management on its web infrastructure platforms in fifteen state-of-the-art data centers supported by approximately 650 professionals. For more information, visit www.navisite.com : .

This release contains forward looking statements, which address a variety of subjects including NaviSite’s plan to divest its colocation business and de-lever its balance sheet. All statements other than statements of historical fact, including without limitation those with respect to NaviSite’s goals, plans and strategies set forth herein, are forward-looking statements. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward looking statements.
general economic conditions and changes in economic conditions; NaviSite’s success, including its ability to improve its gross profit, improve its cash flows, expand its operations and revenue, and reach and sustain profitability, depends on its ability to execute on its business strategy and the continued and increased demand for and market acceptance of its products and services; the possibility that financial forecasts of the Company may not be achieved, including those as to expected EBITDA and revenue, or an inability to realize expected synergies or make expected future investments in NaviSite’s businesses or NaviSite may be unable to raise the necessary funds to meet its payment obligations to its lending group under its senior secured credit facility and other creditors; NaviSite’s management may face strain on managerial and operational resources as they try to oversee the expanded operations; NaviSite may not be able to expand its operations in accordance with its business strategy; NaviSite may experience difficulties integrating technologies, operations and personnel in accordance with its business strategy; NaviSite’s acquisition of companies and businesses may not produce expected cost savings, operational efficiencies or revenue; NaviSite’s products, technologies, and resources may not successfully operate with the technology, resources and/or applications of third parties; NaviSite derives a significant portion of its revenue from a small number of customers and the loss of any of those customers could significantly damage NaviSite’s financial condition and results of operations; and increased competition and technological changes in the markets in which NaviSite’s competes.

For a detailed discussion of cautionary statements that may affect NaviSite’s future results of operations and financial results, please refer to NaviSite’s filings with the Securities and Exchange Commission, including NaviSite’s most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Forward-looking statements represent management’s current expectations and are inherently uncertain. We do not undertake any obligation to update forward-looking statements made by us. All logos, company and product names may be trademarks or registered trademarks of their respective owners.


NaviSite, Inc.Jim Pluntze, 978-946-8615 sbyers@navisite.com : mailto:sbyers@navisite.com