CTC Communications Announces $3.3 Million Dark Fiber Purchase from NorthEast Optic Network.

Business/Technology Editors

WALTHAM, Mass.--(BUSINESS WIRE)--Aug. 23, 2000

NEON Fiber Deal Extends CTC Core Network throughout

Southern New Hampshire and Maine

Highlights:

-- $3.3 Million Agreement Signed with NorthEast Optic Network, Inc. to Purchase 325 Route Miles of Dark Fiber in Northern New England including colocation

-- Commitment to Purchase Optical Networking Equipment from Cisco Systems to "Light Up" the Fiber

CTC Communications Group Inc. (NASDAQ: CPTL)--a rapidly expanding next generation network provider--today announced that the Company has signed a $3.3 million, 20 year agreement with NorthEast Optic Network, Inc. ("NEON") (NASDAQ:NOPT) for 325 route miles of dark fiber extending from Western Massachusetts through Southern New Hampshire and Southern Maine. Under the terms of the agreement NEON will provide colocation along the route as well as ongoing fiber maintenance over the life of the agreement.

This is CTC's second dark fiber purchase. In April 2000 the Company purchased 8300 route miles of dark fiber from Williams Communications covering the Eastern half of the United States. Today's announcement with NEON extends CTC's core fiber network specifically to the commerce centers of the states of New Hampshire and Maine. The Company intends to continue its targeted dark fiber expansion to broaden the geographic reach of its Cisco powered Integrated Communications Network (ICN) and substantially boost bandwidth availability for both the Company and its customers.

CTC further announced that it will install and operate its own optronics along the fiber routes and has selected Cisco Systems Inc., (NASDAQ: CSCO), the worldwide leader in networking for the Internet, as its optronics provider. CTC will purchase industry leading, Internet scale, carrier class optical networking equipment, specifically Cisco's ONS 15454 and ONS 15800 to "light up" the NEON fiber.

In making today's announcement, Robert J. Fabbricatore, CTC's Chairman and CEO stated, "NEON has been a valued partner of CTC since we began deploying our ICN network in 1998 and we are extremely pleased to announce this agreement which represents a continuation of the relationship between our Companies. NEON has fiber routes that help extend CTC's reach to both the primary and secondary centers of commerce in the northern New England states, an important marketplace for us. Additionally, their state of the art network helps CTC provide quality service, redundancy and bandwidth to those markets in an efficient and cost effective manner. Owning and operating the fiber network provides CTC with the tools to effectively manage network costs while keeping pace with the escalating demand for bandwidth. This is a strategic imperative that will enable us to cost effectively and quickly, meet and exceed, customer needs as tomorrow's products and applications - which will be even more bandwidth-intensive - emerge."

Mr. Fabbricatore also noted that the Company continues to explore the purchase of dark fiber in major metropolitan markets. "Moving the power of our broadband ICN network and readily available high level bandwidth progressively closer and closer to the customer's location will be a cornerstone to new applications delivery and speed to market. CTC's fiber and optronics will be integrated directly into the Company's operating support and management systems. This integration will allow CTC to provide bandwidth capacity and routing efficiency on a real-time high-level bandwidth availability to our customers, right at their locations. In short, successful Next Generation Network Communications Providers will bring the network to the customer rather than the customer to the network."

About CTC Communications

CTC is a rapidly growing, next generation communications provider with a packet-based network that allows it to converge voice, data, Internet and video services. Today, the Company serves medium and larger business customers from Washington D.C. to Maine, which includes the most robust telecommunications region in the world--the Washington D.C. to Boston corridor. Designated by Bloomberg Personal Finance Magazine as one of the top "one hundred fastest growing U.S. technology companies," CTC was serving more than 13,000 customers with over 361,000 access lines as of June 30, 2000.

The Company's Cisco Powered IP+ATM packet network, its 36 branch sales offices and its 450 member sales and service teams, provide contiguous marketing and technology coverage throughout the Northeast and Mid-Atlantic states. The Company, through its dedicated commitment to exceptional customer service has achieved an industry-leading market share and an industry-leading line retention rate in excess of 99 percent. CTC can be found on the worldwide web at www.ctcnet.com

The statements in this press release that relate to future plans, events or performance are forward-looking statements that involve risk and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements including branch sales office, ICN Network expansion and fiber network build-out. 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 reports on Forms 10-K and 10Q. 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.