Cbeyond, Inc. Announces Filing of Registration Statement for Secondary Offering of Common Stock

September 20, 2006; 01:44 AM

Cbeyond, Inc. (NASDAQ: CBEY), a managed services provider that delivers integrated packages of voice, mobile and broadband services to small businesses, announced today that it has filed a registration statement with the Securities and Exchange Commission in anticipation of a proposed public offering of up to 4,112,500 shares (including an over-allotment option of up to 536,413 shares) of its common stock by certain existing stockholders of Cbeyond. There will be no proceeds to Cbeyond from the offering.

J.P. Morgan Securities Inc. and Deutsche Bank Securities Inc. will act as joint book-running managers for the proposed offering.

A copy of the prospectus relating to these securities may be obtained, when available, from J.P. Morgan Securities Inc., Prospectus Department, 4 Chase Metrotech Center, CS Level, Brooklyn, New York 11245 (telephone 718-242-8002) or Deutsche Bank Securities Inc., Prospectus Department, 1251 Avenue of the Americas, 25th Floor, New York, New York 10020 (telephone 800-503-4611).

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

About Cbeyond

Cbeyond (www.cbeyond.net) is an Atlanta-based managed services provider that delivers integrated packages of voice, mobile and broadband services to small businesses in Atlanta, Chicago, Dallas, Denver, Houston and Los Angeles. Cbeyond offers core communications services such as local and long-distance voice, mobile and broadband Internet access along with enhanced applications, including voicemail, email, Web hosting, fax-to-email, data backup, file-sharing, VPN and more. Cbeyond manages these services over a private, 100-percent Voice over Internet Protocol (VoIP) facilities-based network.