CTC Announces Commitment for $75 Million Bank Facility Through Goldman Sachs Credit Partners L.P. and Fleet Bank.

WALTHAM, Mass.--(BUSINESS WIRE)--Aug. 5, 1998--CTC Communications Corp. (NASDAQ:CPTL) announced today that it had entered into a commitment with Goldman Sachs Credit Partners and Fleet Bank for a three year senior secured revolving credit facility for up to $75 million. The Company believes that the proceeds of this financing will be sufficient to fund its current business plan for at least 18 months.

Upon entering into this facility, CTC will grant the lenders warrants to purchase 7.5% of the company's common stock on a fully diluted basis (approximately 1.0 million shares) at a price of $6.75 per share, yesterday's closing price. The facility is expected to close by August 31st and is subject to customary closing conditions.

CTC expects to utilize the proceeds of this financing for the Company's planned expansion within its existing markets and into six additional states in the Boston-Washington D.C. corridor, initial deployment of the Company's proposed data-centric Integrated Communications Network in its existing markets, enhancement of the CTC information system and repayment of its existing credit facility with Fleet Bank.

Bob Fabbricatore, Chairman and CEO of CTC, said, "We are extremely pleased to receive this commitment from these two prestigious financial institutions. It comes at a critical time in our transition to a facilities-based Competitive Local Exchange Carrier (CLEC). With this financing we have the ability to begin the initial deployment and testing of our network this fall and believe we will be in a position to begin transitioning customers to the CTC network by next May. Indeed, this financing and the recent federal court ruling overturning the temporary restraining order imposed against CTC earlier this year remove the two major obstacles that CTC had faced in fully executing its business plan."

Steve Jones, Chief Financial Officer of CTC also commented, "The Company feels that this commitment provides a more attractive solution to our financing requirements than the terms of the senior notes which were proposed to the Company by the high yield market in late June. It will be significantly less expensive over the long run and provides more flexibility for the Company. Moving forward, we plan to seek additional vendor financing to complement this facility."

CTC is a rapidly growing provider of integrated communications solutions to small and medium-sized business customers in the Northeastern U.S. It provides an extensive array of voice and data services including local, long distance, frame relay, Internet access, and other advanced data services. The Company markets its services through its 175 member direct sales force located in 20 branch offices throughout Massachusetts, New York, Connecticut, New Hampshire, Vermont, Rhode Island, and Maine. CTC's headquarters is in Waltham, Massachusetts and CTC can be found on the worldwide web at http://.ctcnet.com.

The statements in this press release that relate to future plans, events or performance are forward-looking statements including statements relating to consummation of this facility and other financing, capital requirements, operations, and network deployment. These statements involve risk and uncertainties that could cause actual results to differ materially from those reflected or implied in the forward-looking statements. Readers are, accordingly, cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date hereof. Additional information about these risks and uncertainties is set forth in the Company's most recent report on Form 10-K. CTC undertakes no obligation to release publicly the results of any revisions to these forward-looking statements that may be made to reflect results, events or circumstances after the date hereof.

    CONTACT: CTC Communications Corp.
              John D. Pittenger, [phone]
              http//www.ctcnet.com