CTC Communications Files Plan of Reorganization and Disclosure Statement.

Business Editors

WALTHAM, Mass.--(BUSINESS WIRE)--Sept. 15, 2003

CTC Communications Group, Inc. announced today that it and its subsidiaries have filed their joint plan of reorganization and disclosure statement with the United States Bankruptcy Court for the District of Delaware. This represents an important milestone in CTC's reorganization following its October 2002 Chapter 11 filing.

Pursuant to the plan of reorganization ("Plan"), CTC proposes to implement its previously-announced investment transaction with Columbia Ventures Broadband LLC ("CVC").

CTC must first obtain Bankruptcy Court approval for the disclosure statement, which provides details regarding the Plan, before the Company can solicit votes on its Plan. Following Court approval of the disclosure statement, the Plan would become effective only after receiving the votes required under bankruptcy law, confirmation by the Court and consummation of the CVC transaction.

The Plan has the support of CTC's largest secured lenders, whose claims represent a majority of all creditor claims.

Under the Plan, as proposed, and subject to approval by the Bankruptcy Court:

-- All liabilities incurred after CTC filed its Chapter 11

petition and certain priority claims would be paid in full.

-- Secured equipment lenders would receive such amounts as they

may agree with CTC. Settlements have been reached with CTC's

largest equipment lenders. If a settlement has not been

reached between CTC and a secured equipment lender, the

creditor would receive the value of, or return of, its

collateral.

-- CTC's secured lenders, Verizon and Cisco would share a fund

comprised of CTC's cash on hand as of the effective date of

the Plan, a portion of the proceeds of CTC's new equity issue

to CVC under the investment agreement, both subject to certain

adjustments, and certain other consideration.

-- CTC's unsecured creditors whose allowed claims exceed $5,000

would receive the New CTC Warrant (as described in the

disclosure statement) to purchase 5% of the equity of

Reorganized CTC for nominal consideration and would share with

the secured lenders and Verizon in the proceeds, if any, of

certain causes of action. Provided that this class of

unsecured creditors votes in favor of the Plan (i) these

creditors would have a $500,000 prior share in any proceeds of

certain causes of action before deficiency claims of the

secured lenders and Verizon would share in those proceeds; and

(ii) the deficiency claims of the secured lenders and Verizon

would not share in the New CTC Warrant.

-- CTC's unsecured creditors whose allowed claims are $5,000 or

less, and creditors with claims aggregating between $5,000 and

$10,000 who voluntarily reduce their claims to $5,000, would

constitute a convenience class and receive 15% of their

allowed claims in cash.

-- CTC's existing common and preferred shareholders would not

receive a distribution under the Plan. The existing common and

preferred stock of CTC and all options to purchase equity

securities would be canceled.

-- The equity issued to Columbia Ventures Broadband LLC and the

New CTC Warrant would constitute the only shareholder

interests in CTC.

CTC's Interim CEO, Michael Katzenstein, said, "We are pleased to be taking this important step in CTC's reorganization and we look forward to obtaining Bankruptcy Court approval to present this Plan and disclosure statement to our creditors. Upon consummation of the Plan, CTC's balance sheet will be significantly stronger. Its return to financial health, under new ownership and with new growth capital, will enable it to compete in the marketplace, provide excellent customer service and introduce innovative new services."

Safe Harbor Statement

The statements in this press release that relate to future plans, events or performance are "forward-looking statements". Forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements as a result of various factors, some of which are unknown. These risks and uncertainties include the ability to obtain required consents of lenders, suppliers and other lessors, financial results, operating metrics expectations, reduced operating costs, and the effects of the current economic conditions. Readers are, accordingly, cautioned not to place undue reliance on these forward-looking statements. 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.

About CTC

CTC is a "next generation" Integrated Communications Carrier utilizing advanced technology and providing its customers with converged voice, data, Internet and video services on a broadband, packet-based network, called the PowerPath(R) Network. The Company serves medium and larger business customers from Virginia to Maine, which includes the most robust telecommunications region in the world -- the Washington D.C. to Boston corridor. CTC's Cisco Powered IP+ATM packet network and its top-tier 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 in the Northeast. CTC can be found on the worldwide web at www.ctcnet.com.