NaviSite Signs Commitment Letter for $70 Million Term Loan Facility and $3 Million Revolving Credit Facility; NaviSite Also Files Request to Withdraw S-2 Registration Statement

NaviSite plans to use the net proceeds from the term loan facilityto refinance its Silicon Valley Bank line of credit, the Surebridgeconvertible promissory notes and other short-term debt and to paytransaction fees and expenses. The net proceeds from the revolvingcredit facility are expected to be used for general corporate andworking capital purposes. The term loan facility and revolving creditfacility will mature five years after the closing date. The creditfacilities are expected to include customary representations andwarranties, covenants and defaults.

The closings of the credit facilities are subject to therestructuring of NaviSite's promissory note in favor of AtlanticInvestors, LLC, NaviSite's majority stockholder, and customaryconditions, including completion of any remaining legal and tax duediligence review by Silver Point, the negotiation and execution ofdefinitive loan agreements and NaviSite's meeting certain liquidityrequirements as of the closing. These transactions are expected toclose prior to April 30, 2006.

In addition, NaviSite has filed a request with the Securities andExchange Commission to withdraw its registration statement on Form S-2relating to the proposed public offering of NaviSite's common stock.

About NaviSite, Inc.

NaviSite provides IT hosting, outsourcing and professionalservices for mid- to large-sized organizations. Leveraging a provenset of technologies and extensive subject matter expertise, we delivercost-effective, flexible solutions that provide responsive andpredictable levels of service for our clients' business. Over 900companies across a variety of industries rely on NaviSite to build,implement and manage their mission-critical systems and applications.NaviSite is a trusted advisor committed to ensuring the long-termsuccess of our customers' business applications and technologystrategy. NaviSite has 14 state-of-the-art data centers and 8 majoroffice locations across the U.S., U.K. and India. For moreinformation, please visit www.navisite.com or call 978.682.8300.

The statements contained in this press release that are nothistorical statements are forward-looking, including, withoutlimitation, NaviSite's ability to execute definitive loan documentsand obtain financing from Silver Point. If the conditions to close thetransaction are not satisfied, NaviSite will not enter into definitiveagreements with Silver Point and Silver Point will not have anyobligation to provide financing to NaviSite. Silver Point has noobligation to provide any financing to NaviSite until definitivecontracts have been prepared, negotiated and executed. In addition,the terms of the financing are not final and are subject to theexecution of definitive agreements. Although NaviSite believes it willobtain the financing described in this press release, it cannotguarantee that the transaction will be completed or that it will beable to borrow amounts contemplated thereunder. NaviSite's success isalso dependent on its ability to achieve and maintain profitability;obtain and maintain sufficient working capital; general economicconditions; the loss of customers due to the shutdown of theirbusinesses; decreased or delayed purchase patterns of prospective orcurrent customers or loss of current customers and marketconsolidation; the decreased renewal rate of our customers; increasedcompetition and technological changes in the markets in which NaviSitecompetes; the effects of any future acquisitions of businesses ortechnologies; changes in the uses of the Internet; and possiblefailure of systems or internal infrastructure. For a detaileddiscussion of these and other cautionary statements, please refer tothe filings made by NaviSite with the Securities and ExchangeCommission, including NaviSite's most recent Quarterly Report on Form10-Q. We do not undertake any obligation to update forward-lookingstatements made by us.

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