NaviSite Granted Extension for Continued Listing on the NASDAQ Capital Market

NaviSite, Inc. (NASDAQ: NAVI), a leading provider of enterprise hosting solutions and application services, today announced that the Nasdaq Listing Qualifications Panel has granted the Company continued listing on the NASDAQ Stock Market subject to the condition that, on or before August 24, 2009, it demonstrates evidence of stockholders’ equity of at least $2.5 million, or compliance with one of the alternative criteria for continued listing. The Panel’s determination follows a hearing held on April 23, 2009 at which the Company presented its plan to regain compliance.

As referenced in NaviSite’s previous earnings announcement and as presented to the Panel, NaviSite is planning to regain compliance of the NASDAQ continued listing rules through execution of a strategic plan that includes potential divestiture of colocation assets, a reduction of its overall debt burden, and an increased focus on the core managed hosting, application management and enterprise cloud solutions. More details of the strategic plan will be discussed during NaviSite’s third quarter, fiscal year 2009 earnings conference call scheduled for Thursday, June 4, 2009 at 5:00 PM EDT. The conference call details will be announced in a separate press release and will also be available at www.navisite.com

About NaviSite

NaviSite is a leading provider of enterprise hosting and application solutions. It provides customized and scalable solutions leveraging its industry leading hosting and enterprise cloud infrastructure, and custom and packaged application life cycle management expertise. Over 1,500 customers depend on NaviSite for managed application services, application development, implementation and management on its web infrastructure platforms in fifteen state-of-the-art data centers supported by approximately 650 professionals. For more information, visit www.navisite.com.

This release contains forward looking statement, which address a variety of subjects including the expected divestiture of certain of its assets. All statements other than statements of historical fact, including without limitation those with respect to NaviSite’s goals, plans and strategies set forth herein, are forward-looking statements. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward looking statements: general economic conditions and changes in economic conditions; the M&A market and the price an acquirer may be willing to pay for the assets NaviSite is considering divesting; potential acquirers’ interest that may exist for the acquisition of these assets; the timing of when a transaction may be completed; the transaction structure and ability to reach agreement with an acquirer; and any closing conditions that may be required to complete a transaction. For a detailed discussion of cautionary statements that may affect NaviSite’s future results of operations and financial results, please refer to NaviSite’s filings with the Securities and Exchange Commission, including NaviSite’s most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Forward-looking statements represent management’s current expectations and are inherently uncertain. We do not undertake any obligation to update forward-looking statements made by us. All logos, company and product names may be trademarks or registered trademarks of their respective owners.

All logos, company and product names may be trademarks or registered trademarks of their respective owners.