ATLANTA--(November 6, 2007) - Internap Network Services Corporation (NASDAQ: INAP - News), a global provider of fast, reliable, end-to-end Internet business solutions, today posted solid third quarter results, delivering record revenue and the fourth consecutive quarter of Adjusted Gross Margin⁽¹⁾ and Adjusted EBITDA Margin⁽¹⁾ improvement. Results demonstrated strength across IP, Data Center and CDN Services segments.

“Record revenue, increased margins, a return to GAAP profitability, and accelerating new customer growth resulted in a strong third quarter,” said James P. DeBlasio, Internap’s president and chief executive officer. “Our strategy of bundling Internap’s enterprise-class data center services with our proprietary IP route optimization and content delivery products is gaining momentum in the market. Another quarter of expanding margins points to revenue strength, improved operating leverage, ongoing financial discipline, and a focus on profitable growth.”

Total revenues in the third quarter 2007 increased 32.7 percent to $60.9 million, up from $45.9 million in the third quarter of 2006, which was prior to Internap’s February 20, 2007 acquisition of VitalStream Holdings, Inc. Compared to the second quarter of 2007, total revenue increased 4.1 percent. Accelerated growth in core IP Services and continued strength in Data center and CDN Services drove the revenue increase. These results more than offset year-over-year and sequential declines in Other revenue, which was impacted by a decrease in resold services.

GAAP net income for the third quarter of 2007 was $1.8 million, or $0.04 per diluted share, up $1.6 million and $0.03 per diluted share, respectively, from the same quarter last year. Normalized Net Income⁽¹⁾ and Normalized Net Income Per Diluted Share⁽¹⁾, which exclude the impact of stock-based compensation, was $4.1 million, or $0.08 per diluted share for the third quarter of 2007. Normalized Net Income⁽¹⁾ increased 88.6 percent compared to the third quarter of 2006 and was up 77.8 percent sequentially. Normalized Net Income Per Diluted Share⁽¹⁾ grew 33.3 percent year-over-year, and increased 60.0 percent compared to the second quarter of 2007.

Internap’s Adjusted Gross Margin⁽¹⁾ grew to 51.9 percent in the third quarter of 2007, up from 45.0 percent in the third quarter of 2006. Adjusted Gross Margin⁽¹⁾ grew 250 basis points sequentially, an increase from 49.4 percent in the second quarter of 2007. The Company reported Adjusted EBITDA⁽¹⁾ of $10.9 million for the third quarter of 2007, an increase of $4.8 million, or 79.9 percent, from same quarter last year. Sequentially, Adjusted EBITDA⁽¹⁾ increased $2.0 million or 21.8 percent. Adjusted EBITDA Margin⁽¹⁾ expanded to 17.9 percent over last year’s third quarter Adjusted EBITDA Margin⁽¹⁾ of 13.2 percent.

The Company added 149 net new customers in the third quarter, ending the period with 3,552 customers under contract. This quarter’s new customers included FanU, Defender Technologies and 8x8.

Internap's updated 2007 guidance as of September 30, 2007 is as follows:

-- Full year revenue guidance of 30% - 35% over 2006;

-- Full year Adjusted EBITDA⁽¹⁾ in the range of $36 - $40 million;

-- Full year expected Adjusted Gross Margin⁽¹⁾ of approximately 50%; and

-- Full year capital expenditures in the range of $35 - $40 million, which is a decrease from previous capital expenditure guidance of $45 - $55 million. Internap’s previously announced build out of additional data centers is progressing on schedule, however, the Company will shift timing of some of the expenditures from late in the fourth quarter of 2007 to early in the first quarter of 2008.

Conference Call Information:

Internap's third quarter 2007 conference call will be held today at 5:00 p.m., EST. Participants may access the call by dialing 888-256-0990. International callers should dial 913-312-1394. Listeners may also connect to the simultaneous Webcast available from the investor services section of the Company's Web site at http://ir.internap.com/events.cfm. A replay of the call will be available from November 6th at 8:00 p.m., EST, through November 20th at 888-203-1112 using the replay code 8460222. International participants can access the replay 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 Net Income (Loss) to Adjusted EBITDA," "Reconciliation of Net Income (Loss) and Basic and Diluted Net Income (Loss) Per Share to Normalized Net Income and Basic and Diluted Normalized Net Income Per Share" and "Reconciliation of Gross Margin to Adjusted Gross Margin." This information is also available on our Web site under the Investor Services heading.

About Internap

Internap is a leading Internet solutions provider that manages, delivers and distributes applications and content with unsurpassed performance and reliability. With a global platform of data centers, managed IP services, content delivery network, and content monetization services (CDN), Internap frees its customers to drive innovation inside their business and create new revenue opportunities. More than 3,500 companies across the globe trust Internap to help them achieve their Internet business goals. Internap is "Making Innovation Possible." 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 our future financial position, business strategy, projected levels of growth, projected capital expenditures, projected costs, and projected financing needs, 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, and are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "projects," "forecasts," "plans," "intends," "should," or similar expressions. 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, 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; 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. The forward-looking statements in this release and the statements made in the related conference call for analysts and investors speak only as of the date they are made. We undertake no obligation to revise or update any forward-looking statement for any reason.

INTERNAP NETWORK SERVICES CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts)
		Three months ended September 30,								Nine months ended September 30,
		2007				2006				2007				2006
Revenues:
Internet protocol (IP) services		$	30,071			$	27,625			$	88,453			$	81,744
Data center services			21,711				14,817				59,941				40,054
Content delivery network (CDN) services			6,057				—				13,344				—
Other			3,041				3,432				11,170				10,606
Total revenues			60,880				45,874				172,908				132,404
Operating expenses:
Direct cost of network, sales and services, exclusive of depreciation and amortization
shown below:
IP services			10,722				10,156				31,461				29,527
Data center services			14,523				12,532				42,922				33,630
CDN services			1,860				—				4,481				—
Other			2,167				2,548				8,653				7,902
Direct cost of amortization of acquired technology			1,228				137				2,936				412
Direct cost of customer support			4,495				2,930				12,212				8,596
Product development			1,733				1,107				4,735				3,490
Sales and marketing			8,691				6,569				23,222				20,611
General and administrative			8,028				5,618				24,195				15,888
Restructuring and asset impairment			—				319				12,527				319
Acquired in-process research and development			—				—				450				—
Depreciation and amortization			5,903				4,074				16,727				11,717
Gain on disposals of property and equipment			—				—				(5	)			(114	)
Total operating costs and expenses			59,350				45,990				184,516				131,978
Income (loss) from operations			1,530				(116	)			(11,608	)			426
Non-operating (income) expense:
Interest income			(616	)			(619	)			(1,981	)			(1,563	)
Interest expense			206				215				697				698
Other, net			24				—				5				(146	)
Total non-operating income			(386	)			(404	)			(1,279	)			(1,011	)
Income (loss) before income taxes and equity in earnings of unconsolidated subsidiary			1,916				288				(10,329	)			1,437
Provision for income taxes			121				100				277				100
Equity in earnings of equity-method investment, net of taxes			(42	)			(7	)			(66	)			(111	)
Net income (loss)		$	1,837			$	195			$	(10,540	)		$	1,448
Net income (loss) per share:
Basic		$	0.04			$	0.01			$	(0.23	)		$	0.04
Diluted		$	0.04			$	0.01			$	(0.23	)		$	0.04
Weighted average shares used in per share calculations:
Basic			48,761				34,839				46,238				34,537
Diluted			49,709				35,894				46,238				35,343

INTERNAP NETWORK SERVICES CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts)
		September 30, 2007				December 31, 2006
ASSETS
Current assets:
Cash and cash equivalents		$	43,319			$	45,591
Short-term investments in marketable securities			23,126				13,291
Accounts receivable, net of allowance of $2,198 and $888, respectively			33,106				20,282
Inventory			315				474
Prepaid expenses and other assets			7,207				3,818
Total current assets			107,073				83,456
Property and equipment, net of accumulated depreciation of $160,403 and $151,269, respectively			62,858				47,493
Investments			1,006				2,135
Intangible assets, net of accumulated amortization of $22,360 and $18,644, respectively			44,569				1,785
Goodwill			191,100				36,314
Restricted cash			4,612				—