Telseon Delivers E-Business-Enabling IP Service to San Diego, Houston and Phoenix Metro Markets.

Business Editors/High-Tech Writers

DENVER--(BUSINESS WIRE)--Dec. 5, 2000

IP Network Provider Extends Fast, Scalable Service to Three Major

Markets; On Track to Reach 20 Cities by Year-End

Telseon, an established provider of fast optical networks, today announced that its scalable, high-bandwidth service is available in Houston, San Diego and Phoenix.

Telseon's Ethernet-based technology offers service providers and data centers in these metros a lightning-fast, more cost-efficient alternative to traditional telecommunication systems.

Telseon, already operational in 14 major metros, views the addition of Houston, San Diego and Phoenix as key to its aggressive deployment strategy. There are more than 850 information technology-based companies, 90 telecommunications companies and over 30 Internet-based companies operating in Houston. As many as 100,000 high tech workers in more than 500 companies contribute to San Diego's growing economy. Phoenix is frequently recognized as a hot spot for entrepreneurs due to its airline hubs, educational institutions, skilled workers and telecommunication infrastructure, and is ranked first in the nation in percentage growth of new employees, and second in the number of new business establishments.

As economic growth in these cities continues to rise, Telseon will enable businesses in each to leverage its IP services for faster data transport at typically half the cost of traditional telecommunications offerings. Telseon provides service providers and data center operators that cater to enterprises, including ASPs, ISPs and BLECs, with the high-bandwidth data network that is essential to support business growth and the development of next generation solutions, such as outsourced storage, real-time Internet trading communities and content distribution.

Telseon meets the demand for high-bandwidth services in Houston, San Diego and Phoenix by enabling local businesses to transmit data at 20,000 times the speed of a dial-up modem and to easily provision their bandwidth from one to 1,000 megabits with the click of a mouse.

"Congested metropolitan networks are impeding the growth of Internet-driven businesses," said John Kane, chief executive officer of Telseon. "What we are doing is offering a faster, simpler alternative to the quagmire of traditional carrier networks, and as a result accelerating the ubiquity of e-business in these fast-growth metros."

Through strategic relationships with leading fiber providers such as Level 3 and MFN, as well as colocation facility providers, including BridgePoint, COLO.COM, Equinix and Switch & Data Facilities Company, Telseon delivers faster, more cost-efficient IP services that relieve network congestion caused by traditional legacy systems. With the combination of a high-speed optical network and instantly scalable web-based provisioning, Telseon accommodates the massive data communication needs of the Internet Economy and puts control in the hands of the customer.

In addition to Houston, San Diego and Phoenix, Telseon's service is now available in the Detroit, Miami, Orlando, Philadelphia, Los Angeles, Denver, Chicago, Cincinnati, St. Louis, Atlanta, Dallas, Seattle, San Francisco Bay Area and Silicon Valley metro markets. The company is on schedule to deploy its services to a total of 20 U.S. metropolitan areas by year-end.

About Telseon

Telseon offers fast data network services to enable service providers and their enterprise customers to break the bandwidth bottlenecks in the metropolitan area. Telseon's high-bandwidth IP services allow customers to extend their network reach to meet their data communications needs. With $86 million in funding from a number of well-respected venture capital and investment firms including Crosspoint Venture Partners, DLJ, The Goldman Sachs Group, Inc., Morgan Stanley Dean Witter, Pivotal Asset Management and Sevin Rosen Funds, Telseon is well positioned to change the way metropolitan bandwidth is acquired and delivered. The company is headquartered in Denver, Colorado, and can be reached at 888/858-8032 or on the web at http://www.telseon.com.