SOURCE: NaviSite, Inc.

March 26, 2007 09:00 ET

NaviSite Launches National Labor Exchange Site:

Will Provide Seamless and Uninterrupted Services to America's Job Bank Users

ANDOVER, MA -- (MARKET WIRE) -- March 26, 2007 -- NaviSite, Inc. (NASDAQ: NAVI), a leading provider of application management, professional services, and secure content delivery solutions, announced today that the Company has launched as a successor to America's Job Bank (AJB). America's Job Exchange will provide National Labor Exchange services to employers, job hunters and organizations without any interruption when AJB ends in July 2007. The launch of America's Job Exchange marks the beginning of this transition, and the Company is committed to providing unmatched employment assistance through this new portal.

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. With a deep understanding of this space, including the extensive compliance and reporting requirements, NaviSite will continue to provide all of the services currently available on AJB. In addition, NaviSite will increase the functionality of, 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 -- we know the system inside and out. We have the unique combination of infrastructure resources and expertise to enhance the current system and effectively grow the employment services component of our business," stated Denis Martin, Executive Vice President of Navisite, Inc. "NaviSite understands the specific needs of state government -- including data exchange, compliance and reporting requirements -- that we've worked hand-in-hand with these organizations to design and build. We plan to offer states, employers, and other organizations the ability to customize and integrate this platform with their own systems, an approach that was previously difficult to accomplish within the constraints of the government's processes and procedures."

NaviSite has developed an advertising and subscription-based revenue model that is intended to replace the funding from the U.S. Department of Labor, such that will provide services to states and individual users at no cost. Advertising revenue will be collected from a combination of sponsorships, banners and pay-per-clicks, while subscriptions will be available for non-state employers. The Company anticipates that revenue from these sources will be realized 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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