ATLANTA, GA – (February 28, 2008) Internap Network Services Corporation (NASDAQ: INAP), a global provider of fast, reliable, end-to-end Internet business solutions, today reported strong fourth quarter and full year 2007 results, delivering record revenue and the fifth consecutive quarter of adjusted EBITDA margin(1) improvement. GAAP net income for the fourth quarter totaled $6.3 million or $0.13 per fully diluted share. Fourth quarter net income included a benefit as Internap recognized accumulated net operating loss carry-forwards to offset taxable income.

“Internap had a strong 2007, posting significant accomplishments both financially and operationally,” said James P. DeBlasio, chief executive officer of Internap. “Financial highlights included 30 percent annual revenue growth, record fourth quarter and full-year revenue and net income, and sizable margin improvement. Operationally, we entered the CDN business through our acquisition and integration of VitalStream Holdings, sharply increased our customer count and significantly increased the scale of our business by expanding the global capacity of our data centers and IP network. As we enter 2008, Internap’s strategic position in fast-growing markets combined with our unique bundled services approach positions the company for robust growth and increasing levels of margin contribution as we continue our focus on highly profitable growth.”

Revenue for 2007 was $235.9 million, up $54.5 million, or 30.1 percent compared to 2006. Fourth quarter 2007 revenue totaled $63.0 million, an increase of 28.6 percent over the same quarter last year. Year-over-year revenue growth was driven by a substantial increase in Internap’s data center services segment, core managed IP services, and the addition of Internap CDN services through the February 2007 acquisition of VitalStream Holdings, Inc. Strong demand, along with expanding owned-site and partner-site colocation footprints, benefited data center services revenue in 2007. Steady IP traffic growth and slower pricing declines drove IP services revenue in the fourth quarter and over the entire year. Sequential and year-over-year declines in other revenue were attributable to the planned wind-down of resold CDN services and equipment.

For the full-year 2007, net loss was $4.2 million or $0.09 per fully diluted share down from net income of $3.7 million or $0.10 per diluted share relative to the full-year 2006. The net loss for 2007 includes $13.0 million in one-time charges and a $3.1 million net income tax benefit. Fourth quarter 2007 net income was $6.3 million or $0.13 per share and included a net tax benefit of $3.4 million. The tax benefit was recognized in the quarter as the company determined that its UK subsidiary had demonstrated consistent profitability and could therefore begin to use accumulated net operating loss carry-forwards. Normalized net income (1), which excludes the impact of stock compensation expense and items that management considers non-recurring, totaled $17.4 million in 2007, an increase of 75.7 percent over 2006. On a fully-diluted share basis, normalized net income per share (1) was $0.37, an increase of $0.09 or 32.1 percent year over year.

Adjusted EBITDA (1) rose 56.3 percent to $39.1 million in 2007. In the fourth quarter of 2007, adjusted EBITDA (1) was $11.4 million, an increase of 58.8 percent compared to the fourth quarter of 2006. Full-year 2007 adjusted EBITDA margin (1) was 16.6 percent – up 280 basis points compared to last year. Fourth quarter adjusted EBITDA margin (1) was 18.1 percent, up 350 basis points year-over-year and up 210 basis points sequentially, marking the fifth consecutive quarter of adjusted EBITDA margin (1) expansion. Adjusted gross margin (1) for 2007 was 49.8%, an increase of 350 basis points year over year. In the fourth quarter, adjusted gross margin (1) was 51.0%, an increase of 470 basis points relative to the same period a year earlier.

The company added 259 net new customers in the fourth quarter, ending the period with 3,811 customers under contract. New customers this quarter included Sugar Publishing and PC Universe.

Separately, the company announced that it had secured the largest deal in its history to provide Softlayer, a rapidly growing provider of on-demand technology and connectivity, with Internap’s premium suite of Internet services. The deal totals $40 million over five years and is in addition to the five-year, $16 million contract with Softlayer that was announced in November. As part of the agreement, Internap will deliver its full suite of services to Softlayer. “Our customers increasingly demand multiple services over our three core platforms,” said Mr. DeBlasio. “The expansion of the Softlayer relationship is a significant win for Internap and it clearly validates the traction Internap’s end-to-end Internet product set is gaining in the market.”

Internap reaffirms its previously provided full-year 2008 guidance. This guidance along with the company’s forecast for 2008 capital expenditures is as follows:

• Total revenue growth of approximately 25 percent over 2007;
• Adjusted EBITDA (1) of approximately 20 percent of total revenue; and
• Capital expenditures of $45 to $50 million.

Conference Call Information:
Internap's fourth quarter and full-year 2007 conference call will be held today at 5:00 p.m., EST.

Participants may access the call by dialing 877-627-6555. International callers should dial 719-325-4911. Listeners may also connect to the simultaneous webcast available from the investor relations section of the company’s web site at http://ir.internap.com/events.cfm. A replay of the call will be accessible from Thursday, February 28 at 8 p.m. EST through Wednesday, March 5 at 888-203-1112 using the replay code 6298347. International participants can access the archived call at 719-457-0820 with the same code.

(1) Reconciliations between GAAP information and non-GAAP information contained in this press release are provided in the tables below entitled "Reconciliation of Gross Margin to Adjusted Gross Margin," "Reconciliation of Net (Loss) Income to Adjusted EBITDA," and "Reconciliation of Net (Loss) Income and Basic and Diluted Net (Loss) Income Per Share to Normalized Net Income and Basic and Diluted Normalized Net Income Per Share.” This information is also available on our Web site under the Investor Services heading.

About Internap
Internap is a leading Internet solutions company that provides The Ultimate Online Experience™ by managing, delivering and distributing applications and content with unsurpassed performance and reliability. With a global platform of data centers, managed Internet services, a content delivery network (CDN) and content monetization services, Internap frees its customers to innovate their business and create new revenue opportunities. More than 3,000 companies across the globe trust Internap to help them achieve their Internet business goals. For more information, visit www.internap.com.

Internap “Safe Harbor” Statement
Certain information included in this press release constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, including, among others, statements regarding the performance of our products, business strategy, projected levels of growth, and projected costs, are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of Internap and members of our management team, as well as the assumptions on which such statements are based. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that actual results may differ materially from those contemplated by forward-looking statements. Other important factors that may affect Internap's business, products, results of operations and financial condition include, but are not limited to: our ability to sustain profitability; our ability to respond successfully to technological change; the availability of services from Internet network service providers or network service providers providing network access loops and local loops on favorable terms, or at all; failure of third party suppliers to deliver their products and services on favorable terms, or at all; failures in our network operations centers, network access points or computer systems; the ability to successfully integrate the operations of Internap and VitalStream Holdings, Inc.; and our ability to protect our intellectual property.

Our Annual Report on Form 10-K/A, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K and other Securities and Exchange Commission filings discuss the foregoing risks, as well as other important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition. We undertake no obligation to revise or update any forward-looking statement for any reason.