Eschelon Telecom Acquires Advanced TelCom

Eschelon Telecom, Inc. (www.eschelon.com), a provider of voice, data, Internet services and business telephone systems, announced that it has completed its acquisition of Advanced TelCom, Inc., a Competitive Local Exchange Carrier (CLEC).

Advanced TelCom provides services primarily in California, Nevada, Oregon and Washington to more than 18,000 customers that utilize approximately 116,000 access lines.

"With the completion of this acquisition, Eschelon will have a leading market position among CLECs operating in the Pacific Northwest with a revenue run rate in excess of $215 million and over 350,000 access line equivalents in service," stated Richard A. Smith, President and Chief Executive Officer of Eschelon Telecom, Inc.

Eschelon purchased the stock of Advanced TelCom from Advanced TelCom Group, Inc., an affiliate of General Electric Capital Corporation ("GECC"), for $45.5 million in cash. In a related transaction, Eschelon also repurchased 6,780,541 shares of its Series A Preferred Stock from another GECC affiliate.

"Our integration team, made up of senior level management from both organizations, has been working to bring together associates, networks, processes and systems to create the premier CLEC operating in our markets," stated Bob Pickens, Executive Vice President of Marketing and Integration Program Chairman.

Eschelon Telecom, Inc. was founded in 1996 and is a rapidly growing provider of integrated voice, data and Internet services. Headquartered in Minneapolis, Minnesota, the company offers small and medium sized businesses a comprehensive line of telecommunications and Internet products including local lines, long distance, business telephone systems, DSL, Dedicated T-1 access, network solutions and Web hosting.