NaviSite Receives Nasdaq Delisting Notification

NaviSite, Inc. (NASDAQ: NAVI) announced today that it received a notification letter from the Nasdaq Listing Qualifications Staff on February 24, 2009, indicating that, unless the Company requests a hearing before a Nasdaq Listing Qualifications Panel (the "Panel”), the Company’s common stock will be delisted because the Company was not in compliance with Nasdaq Marketplace Rule 4310(c) (3) (the "Rule”). The Rule requires the Company to have a minimum of $2,500,000 in stockholders’ equity, $35,000,000 market value of listed securities or $500,000 of net income from continuing operations for the most recently completed fiscal year or two of the three most recently completed fiscal years. The delisting notice has no effect on the listing of the Company’s common stock at this time.

On March 3, 2009, the Company will request a hearing before the Panel to address the deficiency, which will stay any action with respect to the Staff determination until the Panel renders a decision subsequent to the hearing. At the hearing, the Company intends to present a plan to regain compliance with the Rule. There can be no assurance that the Panel will grant the Company’s request for continued listing or that the Company’s actions will prevent the delisting of its common stock from The NASDAQ Capital Market.

The Company previously disclosed that on November 6, 2008, the Company received notice from the Nasdaq Listing Qualifications Staff that the Company was not in compliance with the Rule. The Staff granted the Company an extension until February 19, 2009 to regain compliance with the Rule. The Company did not regain compliance with the Rule on or prior to February 19, 2009 and, accordingly, on February 24, 2009 it received the delisting notice.

About NaviSite

NaviSite is a leading provider of enterprise hosting and application solutions. Customers depend on NaviSite for managed application services, application development, implementation and management on its web infrastructure platforms in 16 state-of-the-art data centers supported by more than 650 professionals. NaviSite provides customized and scalable solutions leveraging its broad range of application development capabilities, packaged software implementation expertise, deep portfolio of best in class technologies and a full suite of web-hosting and internet infrastructure options. For more information, please visit www.navisite.com.

This release contains forward-looking statements, which address a variety of subjects including NaviSite’s ability to maintain its Nasdaq listing. 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; NaviSite’s success, including its ability to improve its gross profit, improve its cash flows, expand its operations and revenue, and reach and sustain profitability, depends on its ability to execute on its business strategy and the continued and increased demand for and market acceptance of its products and services; the possibility that financial forecasts of the Company may not be achieved, including those as to expected EBITDA and revenue, or an inability to realize expected synergies or make expected future investments in NaviSite’ businesses or NaviSite may be unable to raise the necessary funds to meet its payment obligations to its lending group under its senior secured credit facility and other creditors; NaviSite’s management may face strain on managerial and operational resources as they try to oversee the expanded operations; NaviSite may not be able to expand its operations in accordance with its business strategy; NaviSite may experience difficulties integrating technologies, operations and personnel in accordance with its business strategy; NaviSite’s acquisition of companies and businesses may not produce expected cost savings, operational efficiencies or revenue; NaviSite’s products, technologies, and resources may not successfully operate with the technology, resources and/or applications of third parties; NaviSite derives a significant portion of its revenue from a small number of customers and the loss of any of those customers could significantly damage NaviSite’s financial condition and results of operations; and increased competition and technological changes in the markets in which NaviSite’s competes. 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.