ESCH Eschelon Telecom (MM)

Eschelon Telecom, Inc., (NASDAQ:ESCH) a leading provider of integrated communications services to small and medium sized businesses in the western United States, today announced the additional Voice Over Internet Protocol (VoIP) product capabilities to its network. The new IP applications will leverage the existing network infrastructure and will be available in addition to existing TDM products. Dan Wigger, Eschelon�s Vice President of Engineering, who led the product development effort said, �Eschelon is not first to market with this kind of product offering and that was a strategic choice. As with any new technology, the hype of VoIP promised more than the initial products could deliver. By waiting, we are now able to deliver a rock-solid product that has been thoroughly tested and will meet our aggressive network performance standards.� The VoIP technology will add a �variable bandwidth� capability to Eschelon�s successful Precision FlexPak product line. This means customers will be able to use the entire 1.5Mb of available bandwidth on their T-1 circuit for dedicated Internet traffic when no voice calls are in progress. �We are offering this capability as an option to FlexPak rather than making VoIP our only delivery method as some carriers have decided to do,� commented Jon Secrest, Eschelon�s Vice President of Marketing. �Some carriers believe that a VoIP-only strategy will eventually lower their network costs but we don�t see it that way. This is a great technology, but it is not the best solution for every customer. By offering both VoIP and TDM-based solutions, we�ll be able to help the customer choose the best solution for their business communication needs � that is key to our product strategy.� �I�m extremely proud of the team of Eschelon Associates who brought this product to market,� added Richard A. Smith, Eschelon�s Chief Executive Officer. �At the beginning of this year we announced an aggressive timeline for the introduction of this product and we beat it! This is a remarkable accomplishment considering we were simultaneously executing multiple integration projects with acquired companies and significantly expanding our network reach into three new markets during the first half of the year. I love the way we have leveraged our high quality TDM network and added a VoIP platform to it � certainly a capital efficient approach.� The VoIP product capability will be initially launched in Minneapolis with subsequent launches scheduled for Denver and Phoenix by the end of the third quarter. About Eschelon Telecom, Inc. Eschelon Telecom, Inc. is a facilities-based competitive communications services provider of voice and data services and business telephone systems in 53 markets in the western United States. Headquartered in Minneapolis, Minnesota, the company currently employs approximately 1,470 telecommunications/Internet professionals, serves over 65,000 business customers and has approximately 655,000 access lines in service throughout its markets in Minnesota, Arizona, Utah, Washington, Oregon, Colorado, Nevada, Montana and California. For more information, please visit our web site at www.eschelon.com Forward Looking Statements This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements are based on Eschelon Telecom�s current intent, belief and expectations. These statements are not guarantees of future performance and are subject to certain risks and uncertainties that are difficult to predict. Actual results may differ materially from these forward-looking statements because of the company�s history of losses, ability to maintain relationships with RBOCs, substantial indebtedness, intense competition, dependence on key management, changes in government regulations, and other risks that may be described in the company�s filings with the Securities and Exchange Commission. In particular, statements regarding the consummation of the merger are subject to risks that the conditions to the transaction will not be satisfied. In addition, our results of operations, financial condition and cash flows also may be adversely impacted by the recent announcement of the proposed transaction, which may impact our ability to attract and retain customers, management and employees. We have incurred and will continue to incur significant advisory fees and other expenses relating to the transaction. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today�s date. Eschelon Telecom undertakes no obligation to update or revise the information contained in this announcement, whether as a result of new information, future events or circumstances or otherwise.