NaviSite Acquires ClearBlue

ANDOVER, Mass. -- NaviSite, Inc. (Nasdaq: NAVI), a provider of Always On Managed Hosting(SM) services, today announced that it has completed the acquisition of ClearBlue Technologies Management, Inc. (CBTM), a provider of managed services and professional services. Under the terms of the transaction, NaviSite has acquired the entire equity stake of CBTM, a wholly-owned subsidiary of ClearBlue Technologies, Inc., (CBT) in exchange for 8,519,676 shares of NaviSite common stock, approximately 4.5% of NaviSite's outstanding shares. CBTM is a leading provider of applications management and integration services to mid-sized to large enterprises and government agencies throughout the US. Customers include: US Department of State, America's Job Bank, Denver Broncos, Johns Hopkins University, Ingersol-Rand Company and others. In a separate transaction, NaviSite has executed an agreement with CBT to operate and manage 10 strategic data centers. Under the terms of the agreement, NaviSite will have the exclusive right to provide managed infrastructure and application services across the expanded data center footprint. The data centers are located in: Chicago, Oakbrook (IL), Dallas, Milwaukee, Los Angeles, San Francisco, Emeryville (CA), Vienna (VA), Las Vegas and New York City. "This acquisition is strategically important and brings a significant amount of applications expertise to NaviSite, accelerating our strategy of being the full service provider of applications management to mid-sized enterprises, government, and business units of Global 2000 companies," said Tricia Gilligan, CEO of NaviSite. "Not to mention, our expanded footprint of 13 data centers, including CBTM's Syracuse facility, extends our presence in key cities." NaviSite