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PSINET TO BUY ISTAR

Toronto-based Internet service provider PSINet Inc. has bought iStar internet inc.of Toronto for $35 million, plus a $5 million cash infusion for working capital. The deal will take up to 90 days to close, after which the new company will be called PSINet. Advertising for iStar is done by Young & Rubicam of Toronto. The Saffer Group has been handling advertising for PSINet for a couple of months. Upon integration, Canadian customers will have access to a network of more than 350 access points of presence.

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