US
LEC to Acquire StarNet [November 11, 2004]
CHARLOTTE,
N.C., Nov 11, 2004 /PRNewswire-FirstCall via COMTEX/
-- US LEC Corp. (CLEC), a telecommunications carrier
serving businesses and enterprise organizations throughout
the Eastern United States, announced today that it will
acquire the assets of StarNet, Inc., a nationwide provider
of dial-up Internet access and telephony services to
Internet Service Providers (ISPs). In a sale order signed
on November 10, 2004, the United States Bankruptcy Court
for the Northern District of Illinois approved the purchase
of StarNet's assets, including its popular MegaPOP ISP
service.
"We are pleased to add StarNet
and its MegaPOP offering to our data services portfolio,
and we know that StarNet's customers will immediately
begin enjoying the stability and improvements that US
LEC provides," said Aaron Cowell, president and
CEO for US LEC. "As one of StarNet's largest vendors,
we will leverage our familiarity with their organization,
in addition to our experience assimilating Fastnet's
data assets, to make this an ideal integration opportunity.
The resulting combination will raise the quality of
these Internet services to standards that competitors
will be hard pressed to meet."
Cowell continued, "The StarNet
acquisition expands our commitment to growing our data
capabilities, and it strengthens US LEC's business model.
The transaction is expected to be almost immediately
accretive to US LEC's bottom line, adding nearly 400
new customers and more than seven million dollars in
annual revenue. We anticipate positive impacts on US
LEC's revenue and EBITDA results."
StarNet currently supplies its wholesale
MegaPOP Internet service to nearly 400 ISPs across the
United States. With the acquisition complete, US LEC
will provide local dial-up Internet access across one
seamless network covering all 50 states, as well as
assume ownership and management of more than 50 StarNet
Points of Presence (POPs), StarNet's servers, equipment
and Network Operations Center (NOC) in Palatine, Ill.
US LEC will retain the majority of StarNet's current
staff to ensure uninterrupted technical and support
operations.
"The StarNet team is excited to
move forward in our relationship with US LEC. StarNet
has always strived for a high level of customer satisfaction,
and now we have the opportunity to show customers what
we can do with the support and commitment of US LEC
behind our network and MegaPOP services," said
Russ Intravartolo, the former CEO of StarNet, who will
manage StarNet's nationwide ISP service for US LEC.
"Knowing US LEC's reputation as a leading competitive
carrier, it's easy to see that our current customers
will recognize an even greater commitment to excellence."
About US LEC
Based in Charlotte, NC, US LEC is a
leading telecommunications carrier providing integrated
voice, data and Internet services to medium and large
businesses and enterprise organizations throughout 15
Eastern states and the District of Columbia. US LEC
services include local and long distance calling services,
Voice over Internet Protocol (VoIP) service, advanced
data services such as Frame Relay, Multi-Link Frame
Relay and ATM, dedicated and dial-up Internet services,
managed data solutions, data center services and Web
hosting. US LEC also provides selected voice services
in 27 additional states and selected data services nationwide.
For more information about US LEC, visit http://www.uslec.com
.
Except for the historical information
contained herein, this report contains forward-looking
statements, subject to uncertainties and risks, including
the demand for US LEC's services, the ability of the
Company to introduce additional products, the ability
of the Company to successfully attract and retain personnel,
competition in existing and potential additional markets,
uncertainties regarding its dealings with ILECs and
other telecommunications carriers and facilities providers,
regulatory uncertainties, the possibility of adverse
decisions related to reciprocal compensation and access
charges owing to the Company, as well as the Company's
ability to begin operations in additional markets. These
and other applicable risks are summarized in the "Forward-Looking
Statements and Risk Factors" section and elsewhere
in the Company's Annual Report on Form 10-K for the
period ended December 31, 2003, and in subsequent reports,
which are on file with the Securities and Exchange Commission.
US LEC is a registered service mark
of US LEC Corp. US LEC and Design (R) is a registered
service mark and trademark of US LEC Corp.
Media Contact, Jennifer Sharpe, 704-319-1135,
or jsharpe@uslec.com , or Investor Contact, James Stawski,
704-319-1189, or jstawski@uslec.com
SOURCE US LEC Corp. |
