CTC Communications Group Announces $200 Million Strategic Equity Infusion.

Business/Technology Editors

WALTHAM, Mass.--(BUSINESS WIRE)--March 27, 2000

--Capital Infusion Funds Accelerated Marketing and Technology

Growth Plans and Initiatives--

CTC Communications Group Inc. (NASDAQ:CPTL)--a rapidly expanding provider of state-of-the-art integrated communications solutions for medium-to-large enterprises in the Northeast United States - today announced it has entered into a definitive agreement under which a group of major US private equity institutions will invest $200 million in CTC to fund the Company's strategic marketing and technology initiatives as part of its accelerated business plan. CTC will announce the participating firms when syndication is complete.

The investment is in the form of an 8.25% Series B convertible preferred stock which converts into common stock at $50.00 per share, a 7.5% premium over CTC's 30-day trailing average stock price. The closing of this agreement is subject to receiving certain regulatory approvals.

Commenting on the investment, CTC's Chairman and CEO Robert J. Fabbricatore said, "This investment is further validation of the Company's growth strategy and its potential to significantly increase shareholder value. In January, 2000 we received a $225 million credit facility underwritten by TD Securities (USA) Inc. which fully funded the Company's multi year base plan for expansion of its branch sales offices and network. This $200 million in equity will provide funding for the Company to pursue strategic marketing and technology initiatives that we believe will accelerate expansion plans, increase market penetration and fuel profitable growth."

About CTC Communications

CTC is a rapidly growing, full-service Integrated Communications Provider (ICP) delivering converged voice, data, Internet and video solutions to medium and larger business customers in the most robust telecommunications region in the world--the Washington D.C. to Boston corridor. Recently designated by Bloomberg Personal Finance Magazine as one of the top "one hundred fastest growing U.S. technology companies," CTC was serving more than 12,000 customers with 269,000+ access lines as of December 31, 1999. Central to the Company's performance and future growth is its Cisco-powered IP+ATM Integrated Communications Network (ICN) named IntelliNET(SM), which is deployed across 8 contiguous northeast states.

CTC markets its full portfolio of services through its over 400 member sales and service representatives located in 30 branch offices throughout the New England States, New York, New Jersey and Maryland. The Company, through its dedicated commitment to exceptional customer service, has achieved an industry-leading market share in the northeast 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, strategic marketing and technology initiatives, future growth initiatives, executing an accelerated business plan and increasing shareholder value. 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-Q. 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.