Advanced Radio Telecom Reports 2000 First Quarter Results and Announces Market Deployment Milestones.

Business/Hi-Tech Editors

BELLEVUE, Wash.--(BUSINESS WIRE)--May 11, 2000

New ISP Customers Signed in San Jose; Second Quarter Market Launches

Planned for Houston, Los Angeles, Seattle and Washington D.C.;

Nationwide Spectrum Coverage Increased

Advanced Radio Telecom Corp. (ART)(Nasdaq:ARTT) today announced 2000 first quarter results and the achievement of a number of milestones in connection with its planned market rollout.

"We have achieved a number of significant successes to date related to our market deployment, customer orders and expanded 39 GHz spectrum asset coverage," said Robert S. McCambridge, president and chief operating officer. "Our market rollout is on plan and, in some markets, ahead of schedule. We turned up new POP and gateway facilities in San Jose and received multi-year service orders from three local Internet Service Providers to provision 75 customers in San Jose. Market launches in Houston, Los Angeles, Seattle and Washington, D.C. are well underway."

"Through our recently announced spectrum acquisitions and auction success, ART has more than doubled its 39 GHz licenses in the U.S. and added spectrum breadth and depth in key markets, including San Francisco," McCambridge said. "Having an average spectrum depth of 400 MHz in 40 tier I markets will provide us a solid foundation upon which to build OC-3, gigabit Ethernet and OC-12 broadband networks. We are accelerating our deployment of fast Ethernet and OC-3 service in 40 tier I markets and we will continue to evaluate and test new broadband technologies to meet the increasing demand for high speed, carrier class broadband IP networks. In addition, we are moving forward with a plan to develop broadband IP networks in 55 tier II markets beginning in 2001."

First Quarter Results

At March 31, 2000, the Company had cash and cash equivalents of approximately $156.7 million, excluding a $31.5 million deposit made in connection with the FCC auction. In addition, the Company had made no draws under its $175 million purchase money facility provided by Cisco Systems Capital. Capital expenditures approximated $5.7 million during the first quarter 2000.

Total revenues for the first quarter of 2000 were $398,000 compared with $226,000 for the same period last year. Operating costs and expenses for the first quarter of 2000 were $13,771,000 compared with $10,782,000, excluding a $6,376,000 equipment impairment provision for the first quarter of 1999. This increase in costs is due to expanded operations and infrastructure build-up in anticipation of network deployment, market development and business expansion. Loss from operations for the first quarter of 2000 was $13,373,000 compared to $10,556,000, excluding the equipment impairment provision for the same period last year. Interest expense, net of interest income, decreased to $1,727,000 for the first quarter of 2000 from $6,904,000 during the prior year period as a result of decreased borrowings as well as increased interest income. The Company's first quarter of 2000 loss before income taxes of $15.1 million decreased from approximately $17.5 million, excluding the impairment provision for the first quarter of 1999.

The net loss for the first quarter of 2000 was $14,825,000 compared to $23,531,000 or $0.87 loss per share for the first quarter of 1999. The $0.68 loss per share for the first quarter 2000 includes $0.16 loss per share relating to deemed preferred stock dividends.

About Advanced Radio Telecom

Advanced Radio Telecom Corp. (Nasdaq:ARTT), headquartered in Bellevue, Wash., is a provider of broadband wireless Internet Protocol (IP) access services at speeds up to 155 Mbps. ART currently owns and operates broadband wireless metropolitan area networks in San Jose, Seattle, Portland, Ore., and Phoenix, and plans to expand to 40 markets over the next three years. ART is a Cisco Powered Network(TM) service provider and has a strategic relationship with Qwest Communications International Inc. (NYSE:Q). ART has a nationwide footprint of 39GHz spectrum licenses in the United States, and owns 26GHz and/or 39GHz spectrum licenses in the United Kingdom and several Scandinavian countries. For more information, please visit ART's web site at www.ipsp.com.

The above information includes forward-looking statements regarding license acquisitions and network deployment. These statements are not guarantees of future performance. Known and unknown risks, uncertainties, and other factors, including without limitation, satisfying closing conditions, final FCC approval, capital requirements and other financial risks, customer demand, technological risks, management of growth, competition and government regulation may cause actual results to differ materially from the future results implied or expressed in the forward looking statements. Additional information about the most significant of such factors is set forth in ART's most recent annual report on Form 10-K. The Company does not undertake to update or revise its forward-looking statements publicly even if experience or future changes make clear that any projected results expressed or implied herein will not be realized.

                     Advanced Radio Telecom Corp.
            Condensed Consolidated Statement of Operations
                              (unaudited)
                 (in thousands, except per share data)

                                                Three Months Ended
                                                   March 31, 2000
                                                --------------------
                                                   2000       1999
                                                --------    --------

Revenues                                        $    398    $    226
                                                --------    --------
Costs and expenses
  Technical and network operations                 4,686       3,540
  Sales and marketing                              1,235       1,466
  General and administrative                       4,691       2,646
  Provision for equipment impairment                --         6,376
  Depreciation and amortization                    3,159       3,130
                                                --------    --------
     Total                                        13,771      17,158
                                                --------    --------
Loss from operations                             (13,373)    (16,932)
                                                --------    --------
Interest and other income (expense)
  Interest expense                                (5,223)     (7,336)
  Interest income                                  3,496         432
                                                --------    --------
     Total                                        (1,727)     (6,904)
                                                --------    --------
Loss before income taxes                         (15,100)    (23,836)
Deferred tax benefit                                 275         305
                                                --------    --------

Net loss                                        $(14,825)   $(23,531)
                                                ========    ========

Net loss                                        $(14,825)   $(23,531)
Deemed preferred dividend                         (4,503)        --
                                                --------    --------
Net loss applicable to common stockholders      $(19,328)   $(23,531)
                                                ========    ========

Weighted average common shares                    28,376      27,035
                                                ========    ========
Basic and diluted net loss per common
 share, including $0.16 loss per
 share relating to deemed preferred
 dividend in 2000                               $  (0.68)   $  (0.87)
                                                ========    ========

                     Advanced Radio Telecom Corp.
                Condensed Consolidated Balance Sheets
                             (unaudited)
                            (in thousands)

                                         March 31,   December 31,
                                            2000         1999
                                         ---------    ---------

Current assets                           $ 157,013    $ 193,916
Property and equipment, net                 18,387       14,747
FCC licenses, net                          179,566      180,754
Other                                       40,253        8,719
                                         ---------    ---------
     Total                               $ 395,219    $ 398,136
                                         =========    =========

Current liabilities                      $  28,291    $  24,162
Long-term debt, net of current portion     109,454      109,047
Deferred income taxes                       29,051       29,326
                                         ---------    ---------
     Total liabilities                    166,796      162,535
Convertible preferred stock                243,536      243,536
Stockholders' equity                       (15,113)      (7,935)
                                         ---------    ---------
     Total                               $ 395,219    $ 398,136
                                         =========    =========