ATLANTA, GA – (August 5, 2008) Internap Network Services Corporation (NASDAQ: INAP), a global provider of fast and reliable end-to-end Internet business solutions, today reported second quarter financial results, delivering another quarter of record revenues and strong cash flow, and an expanding portfolio of data center facilities. The Company also provided an updated forecast of total revenues and adjusted EBITDA⁽¹⁾ margins for the full-year 2008.

“The operational metrics that underpin our business improved measurably this quarter,” said Jim DeBlasio, president and chief executive officer. “We generated record revenues, our cash flow was strong, and more of our customers bought multiple services. Churn also trended down from first quarter levels as the process changes we implemented in March started to show progress. Internap’s data center business continues to perform well and we are on track to open more than 20,000 additional square feet in the second half of 2008. Although we are encouraged by these improvements and strength we are seeing in colocation, softness in our CDN segment has reduced our revenue and adjusted EBITDA⁽¹⁾ estimates for the full-year 2008.”

The Company revised and narrowed its forecast for the full-year 2008 and now expects to generate revenue growth of between 9 and 13 percent over 2007 and adjusted EBITDA⁽¹⁾ margins of between 11 and 15 percent of total revenues. Capital expenditures are forecasted to remain between $45 and $50 million for 2008.

Internap’s second quarter 2008 revenues totaled $62.3 million, up 6.5 percent compared to the second quarter of 2007. The year-over-year increase was driven by an increased data center footprint, and continued colocation pricing strength. Since the second quarter of last year, Internap has deployed more than 40,000 square feet in partner and Internap-operated data center facilities. Increasing amounts of productive data center square footage also drove a 0.4 percent rise in total revenues compared to the first quarter of 2008. This increase in data center revenue more than offset sequential declines in IP and CDN revenues.

GAAP net loss the second quarter of 2008 was $(3.2) million, or $(0.07) per diluted share compared to a net loss of $1.7 million or $(0.03) per diluted share for the same quarter in 2007. Normalized net loss⁽¹⁾ and normalized net loss per diluted share⁽¹⁾, which exclude the impact of certain non-recurring items and stock-based compensation, was $1.2 million, or $(0.02) per diluted share for the second quarter 2008.

Adjusted gross profit⁽¹⁾ was essentially flat compared to the second quarter of last year. Compared to the first quarter of 2008, adjusted gross profit⁽¹⁾ declined 6 percent. Adjusted gross margin⁽¹⁾ was 46.3 percent in the second quarter of 2008, down 310 basis points compared to the same period last year. Sequentially, adjusted gross margins(1) declined 320 basis points, a decrease from 49.5 percent in the first quarter of 2008. Both the year-over-year and sequential decreases in adjusted gross margin⁽¹⁾ were primarily driven by a decline in data center adjusted gross margins⁽¹⁾ which fell due to the planned roll-out of additional owned capacity during the quarter. IP services and CDN services adjusted gross margins⁽¹⁾ also contributed to the decreases as per-unit pricing declines more than offset higher traffic volume and increased operating leverage.

Adjusted EBITDA for the second quarter of 2008 was $5.5 million, down $4.1 million sequentially and $3.5 million compared to the same period last year. Increased operating costs and lower data center gross margins were the primary drivers of the sequential and year-over-year decreases. Operating expense in the second quarter included a $0.5 million charge for executive severance. In addition, operating expense in the second quarter included a non-cash expense of $3.0 million to increase the allowance for doubtful accounts. As part of our quarterly review of the aged receivables balances and taking into consideration current economic conditions, the Company reserved $3.0 million of our customer receivables, primarily in CDN, that have gone uncollected to date. We believe the ability to collect these valid receivables has become less than probable due to changes in circumstance with these customers. Many of these accounts were customers in 2007 and early 2008 but have since been disconnected from our service. We will continue to strongly focus on our customers' ability to make payment in light of the current economic conditions.

Internap’s balance sheet includes approximately $230.6 million of intangibles, net of amortization, of which approximately $190.7 million is goodwill. The majority of the goodwill is attributable to the Company’s acquisition of VitalStream. In August, Internap began its annual process of assessing its goodwill for impairment, which is done in conjunction with the annual budgeting process. In completing this analysis, Internap will take into consideration the year-to-date performance of each of its business units and its expectations for the business units in future periods. This analysis is expected to be completed in the third quarter of 2008.

Internap had 3,768 customers under contract in the second quarter of 2008, a net increase of 19 customers compared to the first quarter 2008. New accounts this period included WebMD and Viacom Global Interactive. Internap's updated outlook for full-year 2008 financial results includes:

• Full year revenue growth of 9 to 13 percent over 2007;
• Full year adjusted EBITDA⁽¹⁾ in the range of 11 to 15 percent of total revenues; and
• Full year capital expenditures in the range of $45 - $50 million.

⁽¹⁾ Reconciliations between GAAP information and non-GAAP information contained in this press release are provided in the tables below entitled "Reconciliation of Net (Loss) Income to Adjusted EBITDA," "Reconciliation of Net (Loss) Income and Basic and Diluted Net (Loss) Income Per Share to Normalized Net (Loss) Income and Basic and Diluted Normalized Net (Loss) 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 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.

INTERNAP NETWORK SERVICES CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
		Three Months Ended June 30,								Six Months Ended June 30,
		2008				2007(2)				2008				2007(2)
Revenues:
Internet protocol (IP) services		$	30,395			$	29,740			$	61,519			$	59,056
Data center services			26,511				19,856				51,696				37,954
Content delivery network (CDN) services			5,419				5,222				11,163				7,274
Other			—				3,676				—				7,744
Total revenues			62,325				58,494				124,378				112,028
Operating costs expenses:
Direct costs of network, sales and services, exclusive of depreciation and amortization shown below:
IP services			11,401				10,573				22,691				20,912
Data center services			20,028				14,095				38,152				28,400
CDN services			2,055				1,958				4,004				2,621
Other			—				2,991				—				6,312
Direct costs of amortization of acquired technologies			1,229				1,054				2,458				1,708
Direct costs of customer support			4,203				4,330				8,568				7,718
Product development			2,052				1,747				4,343				3,002
Sales and marketing			7,711				8,341				16,540				14,531
General and administrative			8,478				7,896				15,826				15,539
Provision for doubtful accounts and billing adjustments			3,042				437				3,697				626
Restructuring and asset impairment			—				—				—				11,349
Acquired in-process research and development			—				—				—				450
Depreciation and amortization			5,699				5,912				11,080				10,824
Gain on disposals of property and equipment			—				—				(16	)			(4	)
Total operating costs and expenses			65,898				59,334				127,343				123,988
Loss from operations			(3,573	)			(840	)			(2,965	)			(11,960	)
Non-operating (income) expense:
Interest income			(507	)			(671	)			(1,208	)			(1,364	)
Interest expense			180				267				490				490
Write-off of investment			—				1,178				—				1,178
Other, net			22				(20	)			103				(19	)
Total non-operating (income) expense			(305	)			754				(615	)			285
Loss before income taxes and equity in earnings of equity method investment			(3,268	)			(1,594	)			(2,350	)			(12,245	)
Provision for income taxes			46				106				297				156
Equity in earnings of equity-method investment, net of taxes			(77	)			(17	)			(149	)			(24	)
Net loss		$	(3,237	)		$	(1,683	)		$	(2,498	)		$	(12,377	)
Basic and diluted net loss per share		$	(0.07	)		$	(0.03	)		$	(0.05	)		$	(0.28	)
Weighted average shares used in computing basic and diluted net loss per share			49,208				48,515				49,159				44,932
(2) Revenues and direct costs of network, sales and services, exclusive of depreciation and amortization, for the three and six months ended June 30, 2007 have been reclassified to conform to the current presentation.

INTERNAP NETWORK SERVICES CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
		June 30, 2008				December 31, 2007
ASSETS
Current assets:
Cash and cash equivalents		$	54,931			$	52,030
Short-term investments in marketable securities			12,355				19,569
Accounts receivable, net of allowance of $8,827 and $5,470, respectively			29,570				36,429
Inventory			657				304
Prepaid expenses and other assets			9,350				8,464
Deferred tax asset, current portion			406				479
Total current assets			107,269				117,275
Property and equipment, net of accumulated depreciation of $175,787 and $165,543, respectively			74,571				65,491
Investments			8,061				1,138
Intangible assets, net of accumulated amortization of $27,042 and $23,921, respectively			39,887				43,008
Goodwill			190,677				190,677
Restricted cash			1,000				4,120
Deposits and other assets			2,867				2,287
Deferred tax asset, non-current			3,023				3,014
Total assets		$	427,355			$	427,010
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable, current portion		$	4,920			$	2,413
Accounts payable			18,874				19,624
Accrued liabilities			9,844