SOURCE: NaviSite, Inc.

April 09, 2007 09:00 ET

NaviSite Announces Free National Labor Exchange Service to Employers:

Will Assist Federal Contractors in Addressing Compliance Concerns

ANDOVER, MA -- (MARKET WIRE) -- April 9, 2007 -- NaviSite, Inc. (NASDAQ: NAVI), a leading provider of application management, professional services, and secure content delivery solutions, announced today that the site, recently launched as a successor to America's Job Bank (AJB), will provide National Labor Exchange services to employers at no charge for a full year to companies who sign up by June 1, 2007. Previously it was announced that job hunters, states and non-profit organizations could use the site without cost to avoid any interruption of service when AJB ends in July, 2007. The extension of free services to employers is a significant step toward addressing concerns that they would need to implement expensive custom solutions or pay subscription fees to existing job sites to maintain compliance with federal regulations.

NaviSite has operated America's Job Bank since 1995, with funding provided by the U.S. Department of Labor. During this time, NaviSite has developed and supported this service while managing the wealth of data currently on the system -- including over 7,000,000 individuals seeking jobs, along with 475,000 employers, more than 600,000 resumes, and over 2,000,000 positions. Federal contractors would routinely post jobs to the site as means of complying with Federal job posting regulations. NaviSite will continue to provide all of the services currently available on AJB; in addition, NaviSite will increase the functionality of America's Job Exchange, leveraging the years of experience in employment services and job matching.

NaviSite has designed, developed and operated America's Job Bank's website for more than 10 years. AJB was specifically named as a way to meet Federal job posting regulations. "With AJB scheduled to be shut down on July 1 and with the current confusion over what new regulations may be put in place we felt it was important to offer a potential solution at no cost," stated Denis Martin, Executive Vice President of NaviSite, Inc. "We don't know what the new regulations will say but we do know that we intend to comply to the extent that we can. We also feel we are uniquely qualified to do this as we are the company that built and supported the technology that allowed states to upload and download jobs as part of the AJB labor exchange process."

NaviSite has developed an advertising and subscription-based revenue model that is intended to replace the funding from the U.S. Department of Labor. Advertising revenue will be collected from a combination of sponsorships, banners and pay-per-clicks, while subscriptions will be available for non-state employers who sign up with America's Job Exchange after June 1, 2007. The Company anticipates that revenue from these sources will begin in fiscal 2008, after the termination of the America's Job Bank website.

Concluded Martin, "Through, NaviSite will continue to provide the America's Job Bank user community with value-added services -- based upon a flexible, scaleable solution. Our goal in the coming months is to assure current users that they can plan for business as usual, continuing to receive the high levels of service along with increased features and functionality in the near future."

About NaviSite, Inc.

NaviSite is a leading provider of application and technology services for companies who seek to accelerate their business IT performance. With over 950 customers in 14 data centers; offices in the US, UK and India; NaviSite is the partner of choice for many of the fastest growing companies for outsourcing enterprise application and related IT services to drive their IT Efficiency and Effectiveness. NaviSite delivers a unique combination of application implementation, management, and content delivery services to provide full lifecycle support for today's industry leaders. For more information, please visit

This release contains forward-looking statements, which address a variety of subjects including the expected future operating and financial results, including profitability, revenue growth and EBITDA, success and performance of NaviSite's product and service offerings, and NaviSite's strategic business plans for growing its customer base and increasing sales. 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: 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' businesses or NaviSite may be unable to raise the necessary funds to meet its payment obligations to Silver Point Finance 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 would 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.

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