Avana Receives $6.5 Million Investment From Greenlight Capital.

Business Editors

ATLANTA--(BUSINESS WIRE)--April 24, 2000

Grace Development, Inc. (OTCBB: GCDV), doing business as Avana Communications, an Atlanta-based integrated communications provider ("Avana"), today announced that on April 14, 2000, Avana received an initial investment of $6.5 million from Greenlight Capital, L.P. and certain of its affiliates. In addition, Greenlight has the option to invest up to an additional $13.5 million in Avana over the next year.

Net proceeds from Greenlight's initial investment were used to repay $1.4 million of outstanding notes issued by Avana in a prior financing, and the remainder of the net proceeds will be used for Avana's working capital requirements as it implements its business plan. Additional information with respect to Avana, its business plan and the terms of the Greenlight investment may be found in the Annual Report on Form 10-K of Grace Development, Inc. filed with the Securities and Exchange Commission on April 14, 2000.

Commenting on the transaction, Ben Holcomb, chairman and chief executive officer of Avana, said, "We are delighted that a firm with Greenlight's investment record and relationships has elected to make such a significant investment in Avana. With this investment, we believe we have the capital necessary to move forward aggressively to implement our business plan and pursue profitable growth."

Jeffrey Keswin, co-president of Greenlight Capital, Inc., commented, "We are impressed with the company's portfolio of business opportunities. In a short time, Avana has assembled a remarkable telecommunications platform that is intended to address the convergence of communications and their target markets."

About Avana

Atlanta-based Grace Development, Inc. (OTCBB: GCDV), doing business as Avana Communications (www.avanacorp.com), is an integrated communications provider (ICP) offering a single-source solution for services traditionally offered by CLECs, IXCs, ISPs, ASPs and other data and communications providers. WebWizard by Avana (www.webwizinc.com.) an Internet web page creation and hosting technology and Alpha Computer Services Inc. (www.alphacsi.com) a network integrations and computer services provider, are two of the newest additions to the Avana Communications Team of Technology.

About Greenlight

Greenlight Capital, Inc. is a private investment firm based in New York City. The firm was founded in 1996 by Jeffrey Keswin and David Einhorn to invest in special value situations.

This news release may contain forward-looking statements concerning the business and products of Avana. Actual results may differ materially depending on a number of risk factors. Avana undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this release. The Integrated Communications Providers (ICPs), and technology companies listed below may be considered as similarly positioned and competitive marketers or related technology providers: Convergent Communications (CONV), Allegiance Telecom Inc. (ALGX), Netopia Inc. (NTPA), Network Plus Corporation (NPLS), IDT Corporation (IDTC), Viatel (VYTL), Focal Communications (FCOM) and Primus Telecommunications Inc. (PRTL).