Tierzero Signs $3.3 Million Contract With Mpower Communications for Private Line Network Services

Tierzero Signs $3.3 Million Contract With Mpower Communications for Private Line Network Services

ROCHESTER, N.Y., Jan. 5 /PRNewswire-FirstCall/ -- Mpower Communications Corp. (AMEX:MPE), a leading provider of broadband Internet access, private line and voice services, today announced that Tierzero, a California regional Internet Service Provider, has signed a $3.3 million agreement to purchase private network access services from Mpower over the next 2-1/2 years.

Mpower is providing Tierzero with a turnkey private line network including a dedicated OC-48 fiber ring to deliver high quality and high-speed T1 Internet access to its customers. By leveraging the capacity and reach of the California statewide SONET-based fiber network recently purchased from ICG, and its extensive collocation and switching infrastructure, Mpower is uniquely positioned to offer Tierzero the capacity, quality, reliability and flexibility necessary to support its ISP business for a fraction of the cost of building its own network.

"The opportunity to support a business plan such as Tierzero's plays to our strengths as a facilities-based CLEC with a deep and dense network footprint," said Mpower Communications Chairman and Chief Executive Officer Rolla P. Huff. "Given the current regulatory and economic environment, growth-oriented businesses such as Tierzero don't need the hassle of working with the large monopolistic phone companies for network capacity. With an extensive facilities-based CLEC network in California, ISPs, IXCs and other CLECs can rely on Mpower for the network reach, quality and cost structure to support their businesses. Our agreement with Tierzero is a perfect example of how competitive providers can work together to fill network capacity and generate additional revenue off existing networks."

Utilizing Mpower's secure and innovative network solution, Tierzero is free to accelerate its focus on providing unsurpassed Internet services and support to its customers. Tierzero will begin provisioning new customers on dedicated 1.54 megabits per second Internet connections on the Mpower private line network immediately and will convert its existing base of customers onto the Mpower network over the coming months.

"After obtaining CLEC approval we began the initial stages of our own network build-out only to find strong resistance at every turn from the ILECs. That coupled with the uncertainty of the recent FCC TRO ruling led us to seek other alternatives," explained John Carter, Chief Executive Officer of Tierzero. "Mpower not only demonstrated a unique willingness to support us from a cost and network standpoint, they also showed us that they truly wanted to do business with us, which in the end made all the difference. "

About Tierzero

Founded in 1997, Tierzero is a regional Internet Service Provider specializing in T1, T3 and Colocation services for businesses in Southern California. More information can be found at http://www.tierzero.net/.

About Mpower Holding Corporation

Mpower Holding Corporation (AMEX:MPE) is the parent company of Mpower Communications, a leading facilities-based broadband communications provider offering a full range of private line, data, telephony, Internet access and Web hosting services for business customers and carriers. Further information about the company can be found at http://www.mpowercom.com/.

Forward-Looking Statements

Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, certain statements contained in this press release regarding our and/or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. These forward-looking statements are not historical facts and are only estimates or predictions. Actual results may differ materially from those projected as a result of risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information, or otherwise.


Source: Mpower Communications Corp.

CONTACT: Investor Contact, Gregg Clevenger, Chief Financial Officer,
+1-585-218-6547, invest@mpowercom.com, or Media Contact, Michele Sadwick, Vice
President, +1-585-218-6542, msadwick@mpowercom.com, both of Mpower
Communications; Jim Gurol, Vice President of Operations, Tierzero,
+1-213-284-0536, jim.gurol@tierzero.net

Web site: http://www.mpowercom.com/
http://www.tierzero.net/


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