US LEC Closes on FASTNET Acquisition [17th December 2003]

CHARLOTTE, N.C., Dec 17, 2003 /PRNewswire-FirstCall via Comtex/ -- In a transaction that will add approximately $24 million in annual data revenue, US LEC Corp. (CLEC) , a super-regional telecommunications carrier providing integrated voice, data and Internet services to businesses, announced today that it has completed its acquisition of substantially all of the assets of FASTNET(R) Corporation.

US LEC Corp. acquired the Broadband and Dial-Up Internet Access, Co-location, and Managed Hosting business units of FASTNET, as well as two data centers in eastern Pennsylvania for approximately $8.5 million that included $6 million in cash, $1 million of US LEC common stock, and a $1.5 million note, along with the assumption of certain liabilities. Kaufman Bros., L.P. acted as exclusive financial advisor to US LEC Corp. on this transaction.

"Completing the FASTNET transaction is another step in our efforts to accelerate the growth of our data business and the steady growth of US LEC," said Aaron Cowell, president and CEO for US LEC. "Our network integration will make this transaction immediately EBITDA and cash flow accretive to our company and will boost our T1-level, business class customer base to approximately 17,000."

"US LEC will continue to provide former FASTNET customers with the same high-quality services to which they are accustomed, and in the coming months, US LEC will be able to provide these customers with the full suite of voice, data and Internet service offerings from US LEC," continued Cowell. "In addition, US LEC will add new and improved data and Internet services to our existing product suite, enabling us to further deepen our market penetration in Pennsylvania, New York and New Jersey."

US LEC intends to maintain a significant presence in the greater Lehigh Valley and Philadelphia areas. US LEC will continue to provide dedicated and broadband access to nearly 2,000 customers, as well as shared Web hosting and dial-up Internet services to more than 20,000 additional customers, in the greater Mid-Atlantic region from Northern Virginia to New York. US LEC will also continue to provide Internet security and data backup, VPN design and implementation, managed hosting, dial-up Internet access and co-location services.

About US LEC

Based in Charlotte, NC, US LEC is a super-regional telecommunications carrier providing integrated voice, data and Internet services to approximately 17,000 mid-to-large-sized business customers throughout the southeastern and mid-Atlantic United States. US LEC also provides shared Web hosting and dial-up Internet services to more than 20,000 additional customers.

The US LEC network is supported with 27 digital switching centers operating on Lucent 5ESS(R) AnyMedia(TM) and SanteraOne(TM) digital switches, Lucent CBX500 ATM data switches and Juniper M20(TM) Internet Gateway routers. The US LEC product line includes local calling services, long distance plans featuring toll free and conferencing services, dedicated and dial-up Internet services (US LECnet), Web hosting, and advanced data services such as Frame Relay, ATM and DPL (Digital Private Line) service.

The US LEC local service areas include Alabama, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia and the District of Columbia. US LEC also offers selected voice services in Arkansas, California, Colorado, Connecticut, Delaware, Illinois, Indiana, Iowa, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nevada, New Hampshire, Ohio, Oregon, South Dakota, Texas, Washington, West Virginia and Wisconsin, in addition to data services in these states and others. For more information about US LEC, visit 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, 2002, 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.

CONTACT: Media, Jennifer Sharpe, +1-704-319-1135, or jsharpe@uslec.com, or Investors, James Stawski, +1-704-319-1189, jstawski@uslec.com, both of US LEC Corp.

SOURCE US LEC Corp.

Media, Jennifer Sharpe, +1-704-319-1135, or jsharpe@uslec.com,
or Investors, James Stawski, +1-704-319-1189, jstawski@uslec.com, both of US
LEC Corp.