InterNAP Network Services Corp. –

SEATTLE – InterNAP Network Services Corp., a provider of Internet connectivity services, went public September 29, offering 9.5 million shares at $20 apiece. The company’s stock priced above its $17 to $19 filing range.

Underwritten by Morgan Stanley Dean Witter, Credit Suisse First Boston, Donaldson, Lufkin & Jenrette and Hambrecht & Quist, the initial public offering left 63 million shares of stock outstanding. There were no selling shareholders.

Venture backers included Morgan Stanley Venture Partners, Hambrecht & Quist California, Oak Investment Partners, Vulcan Ventures Inc. and Fidelity Ventures.

InterNAP provides clients with Internet connectivity services that bypass congested public network access points, resulting in a faster, more reliable, centrally-managed system.

The company plans to use the expected $175.6 million generated from the IPO for capital expenditures, including expansion of the network, and for general corporate purposes. InterNAP may use a portion of the proceeds for acquiring or investing in complementary businesses, technologies or products.

The company has never been profitable, losing $1.6 million in 1997 and $7 million in 1998.

Eugene Eidenberg, a principal at Hambrecht & Quist, joined as a director and chairman of InterNAP in November 1997, and as chairman of the board of directors, in 1998. Kevin Ober, a member of the investment team at Vulcan, joined the company’s board of directors in October 1997. William Harding, a principal at Morgan Stanley, and Fredric Harman, a managing member of the general partners at Oak, both joined the board in January.

InterNAP Network – Selected Financial

(in thousands, except per share data)

May 1, 1996 (inception) Year Ended December 31 Six Months Ended June 30

to December 31, 1996 1997 1998 1998 1999

Total revenue 44 1,045 1,957 731 3,410

Net loss -959 -1,609 -6,973 -1,461 -16,149

Net loss per share -0.29 -0.48 -2.09 -0.44 -4.78