NaviSite Renews and Expands Four-Year Relationship with Sterngold; 107

    Business Editors/Technology Editors

    ANDOVER, Mass.--(BUSINESS WIRE)--April 13, 2005--NaviSite, Inc. (NASDAQ SC: NAVI), a leading provider of IT Outsourcing and Software On Demand enablement services for middle-market organizations, announced today that Sterngold Dental, a world-renowned leader in dental alloys, attachments, implants and restorative systems, has renewed and expanded its contract with NaviSite, extending Sterngold's four-year relationship with the company. Under the new contract, NaviSite will replace Sterngold's existing eCommerce application, OneSoft, and will implement and manage an eCommerce solution from Microsoft Commerce Server. NaviSite will add advanced functionality that will enhance Sterngold's customers' shopping experiences and will reduce the monthly costs of Sterngold's existing eCommerce environment.
    Sterngold first partnered with NaviSite in 2001 to create an eCommerce Web site to reach its widespread customer base. That Web site required capabilities to handle a vast number of products, frequent order requests and demands for same-day shipping. Outsourcing its Web site hosting to NaviSite has cut Sterngold's deployment time in half and allowed the company to realize a quick return on investment. Currently, Sterngold conducts more than $1.2 million a year in business on its Web site.
    Stemming from the success of this project, Sterngold has recently tasked NaviSite with transitioning its existing eCommerce application, OneSoft, to Microsoft Commerce Server. While NaviSite had been supporting the OneSoft package, the company took extra steps to ensure that the new Microsoft Commerce Server application would be the right fit, including interviewing several key stakeholders on the project and delving into Sterngold's business to ensure that the new application would enhance the user experience of Sterngold's customers'. NaviSite expects the implementation to take six months.
    "We chose to extend our long-standing relationship with NaviSite based on its strong track record and its proven ability as a trusted partner and advisor to us. NaviSite understands our business requirements and provides us with cost savings and quick deployment," said Gordon Craig, Vice President of Business Development, Sterngold. "We are a manufacturing company, not a technology company, and by outsourcing to NaviSite, we are able to remain focused on our core business and leverage enterprise-level applications at a fraction of the cost of implementing this solution in-house."
    "Four years ago, Sterngold found a partner in us that it could rely on, and we're proud to continue that relationship," said Stephen Pace, Senior Vice President, Sales and Marketing, NaviSite. "The fact that Sterngold has committed to another three-year contract proves the viability still inherent in the outsourcing model and the value we deliver as a company to our customers. Outsourcing to NaviSite allows Sterngold to remain competitive without having to focus on the technology."
    NaviSite has expertise across Microsoft Business Solutions' entire product suite and has tailored solutions for Microsoft CRM, Great Plains, Solomon and Navision, as well as Microsoft Commerce Server and Microsoft Exchange. Through a number of complementary application partnerships, NaviSite is able to meet the unique requirements of virtually any organization seeking to modernize its front or back-office solution and offers implementation, integration, upgrade, training, optimization and outsourcing services.
    "The partnership between NaviSite and Sterngold Dental demonstrates the immediate advantages for our customers throughout North America," says Brian Neirby, New England General Manager of Small and Midmarket Solutions and Partners for Microsoft Corp. "By leveraging Microsoft Commerce Server to better address the eCommerce needs of mid-market manufacturing companies, NaviSite supports Microsoft's desire to help solve customer business problems. We congratulate NaviSite and Sterngold Dental on their success."
    In addition, NaviSite offers a full range of services, including application deployment for applications such as PeopleSoft, Microsoft Business Solutions, Siebel and Lotus Domino. NaviSite also provides management of infrastructure and applications, including hosted or managed applications in its data centers, performance management, server/OS management and network and security management, as well as the ability to enable applications as software as a service (SaaS) through its ISV partnerships.

    About Sterngold Dental

    Sterngold Dental, LLC is the union of two strong companies with impressive dental histories: APM-Sterngold and ImplaMed. Sterngold was founded in 1897 as a fabricator of precious alloys and is credited as among the first to produce consistently formulated and alloyed dental casting golds. ImplaMed was created by a company specializing in the micro-machining of sophisticated implantable devices for medical and dental products manufacturers.
    Today, Sterngold Dental, LLC continues to build upon a rewarding century-old relationship with restorative dentistry, and is a world renowned leader in alloys, attachments, implants and restorative systems. Examples are the Stern ERA family of resilient dental attachments and the Natural Profile Abutment System for aesthetic restoration of osseointegrated implants.
    Sterngold Dental, LLC ensures that their products and services meet or exceed the requirements of the Quality System guided by ISO 13485:1996 under the Canadian Medical Device Regulations, MDD 93/42/EEC and the Food and Drug Administration's Quality System Regulations and Current Good Manufacturing Practices.

    About NaviSite

    NaviSite, Inc. (NASDAQ SC: NAVI) deploys, manages and enables software applications and infrastructure for middle-market organizations, which include mid-sized companies, divisions of large multi-national companies and government agencies.
    The Company offers a full range of services, including design, implementation, optimization, upgrade, application development, fully-hosted and remote-application management, managed services, content delivery, collocation and Software as a Service enablement.
    NaviSite is a Microsoft Gold Certified Partner, PeopleSoft Distributor and Silver Services Partner, and a Siebel Reseller Partner. The Company offers vertical expertise in the manufacturing/distribution, financial services, healthcare/pharmaceutical, services, publishing/media & communications and public sector industries.
    NaviSite was founded in 1997 and is headquartered in Andover, Massachusetts, with offices and data centers across the United States and in the UK and India. The Company has approximately 480 employees servicing approximately 1,100 customers world-wide. For more information, please visit www.navisite.com or call 978.682.8300.

    This release contains forward-looking statements that address a variety of subjects, including the success and performance of NaviSite's service offerings and the success and benefits of the relationship between NaviSite and Sterngold. 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 is dependent on its ability to achieve and maintain profitability; NaviSite's success is dependent upon its ability to integrate the companies and assets it recently acquired; NaviSite's recent acquisitions may not produce expected cost savings, operational efficiencies or revenues; NaviSite's products, technologies and resources may not successfully interoperate with the technology, resources and/or applications of third parties; NaviSite's success, including its ability to decrease its cash burn rate, improve its cash position, and grow its business and revenues to reach profitability, depends on its ability to execute on its business strategy and the continued and increased demand for NaviSite's services and the Internet in general; NaviSite's business may be adversely affected by further slow down in general economic conditions; the loss of customers due to the shutdown of their businesses; decreased or delayed purchase patterns of prospective or current customers or loss of current customers and market consolidation; the decreased renewal rate of our customers; increased competition and technological changes in the markets in which NaviSite competes; the effects of recent combinations involving affiliated entities of ClearBlue Technologies, Inc. and the effects of the recent acquisition of Surebridge; the effects of any future acquisitions of businesses or technologies; changes in the uses of the Internet; and possible failure of systems or internal infrastructure. For a detailed discussion of these and other cautionary statements, please refer to the filings made by NaviSite with the Securities and Exchange Commission, including the most recent Quarterly Report on Form 10-Q of NaviSite. We do not undertake any obligation to update forward-looking statements made by us.

    All logos, company and product names my be trademarks of their respective owners

    Microsoft, Great Plains, Solomon, Navision are either registered trademarks or trademarks of Microsoft Corporation, Great Plains Software, Inc., or Microsoft Business Solutions ApS or their affiliates in the United States and/or other countries. Great Plains Software, Inc., and Microsoft Business Solutions ApS are subsidiaries of Microsoft Corporation. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

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CONTACT: NaviSite, Inc. Bernd Leger, 978-946-8729 bleger@navisite.com or Lois Paul & Partners Darlene Doyle, 781-782-5868 darlene_doyle@lpp.com

KEYWORD: MASSACHUSETTS INDUSTRY KEYWORD: MEDICAL RETAIL SOFTWARE NETWORKING MARKETING AGREEMENTS SOURCE: NaviSite, Inc.

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