Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or
Standard; Transfer of Listing.
On December 12, 2008, NaviSite, Inc. (the "Company") received notice from the Nasdaq Listing Qualifications Staff (the "Staff") granting the Company an extension to February 19, 2009 to regain compliance with Nasdaq Marketplace Rule 4310(c)(3) (the "Rule").
As the Company previously disclosed, on November 6, 2008, the Company received notice from the Staff that the Company was not in compliance with the Rule, which 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. On November 21, 2008, the Company submitted to the Staff a specific plan to achieve and sustain compliance with all Nasdaq Capital Market listing requirements.
Under the terms of the extension, on or before February 19, 2009, the Company must furnish to the Securities and Exchange Commission and Nasdaq a publicly available filing evidencing its compliance with the Rule.
In the event that the Company receives notice that its common stock is being delisted from the Nasdaq Stock Market, Nasdaq rules permit the Company to appeal any delisting determination by the Staff to a Nasdaq Listings Qualifications Panel.

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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

NaviSite, Inc.

Date: December 16, 2008

By: /s/ James W. Pluntze James W. Pluntze Chief Financial Officer