Cbeyond Communications Opens Los Angeles Market and Announces 38 Percent Customer Growth in 2005 and Record Low Customer Churn; Small Businesses in LA have a Better Choice in Communications Services.

ATLANTA -- Cbeyond, (Nasdaq: CBEY), a managed services provider and a leader in Voice over IP (VoIP), today announced it is offering advanced communications services in the Los Angeles area to small and medium sized businesses. The company also reports 20,347 customer locations on its network as of Dec. 31, 2005 and 0.9 percent monthly churn during the fourth quarter of 2005.

Cbeyond now offers small businesses in Los Angeles and Orange County a complete package of managed services, including VoIP, mobile, security, messaging, collaboration and storage. Cbeyond's fully managed, 100 percent VoIP network provides its customers with the applications, service and quality large enterprises are accustomed to but which typically remain out of reach for small businesses.

"Our sixth market, Los Angeles, represents a significant market opportunity for us. Its more than 176,000 small businesses make Los Angeles the largest market in the U.S. for small business, and we believe that many of these businesses are currently underserved by the region's carriers," said Jim Geiger, president and CEO of Cbeyond. "Our service offering is specifically focused on one vibrant segment of the market--the busy entrepreneurial class. With Cbeyond, these businesses enjoy the convenience of working with a single provider and the predictability that comes with one bill for all of their communication services, including mobile. That's why small businesses choose us and stay with us."

Cbeyond added 1,450 customers during the fourth quarter of 2005, compared with 1,462 added in the third quarter of 2005 and 1,307 added in the fourth quarter of 2004.

"We were pleased with the level of customers added in the fourth quarter. Historically, we have typically seen a decline in customer additions from the third to the fourth quarter due to the impact of fewer business days resulting from the holiday seasons," said Geiger. "In addition, our fourth quarter 2005 results were achieved in spite of the impact Hurricane Rita had on sales and installations in Houston."

For the full year of 2005, Cbeyond's customer base grew 38.3 percent. Customer churn in the fourth quarter was 0.9 percent per month. The fourth quarter of 2005 was the 11th straight quarter that the company has reported churn of one percent or less.

"We signed up with Cbeyond because its bundled package of voice, high-speed Internet and data services is more convenient for us than dealing with multiple providers," said Jeffrey Babiak, manager at V&M Plating, an aerospace plating company based in Los Angeles. "The Cbeyond sales representative was straightforward and knowledgeable, and focused on selling us the services we need to run our business. In particular, the Secure Backup and Fileshare service will make it easier for us to backup our important business information."

Cbeyond's BeyondVoice I package includes six local phone lines with 1,500 minutes of local and long distance service, and a high-speed 1.5 Mbps symmetric Internet connection for as low as $495 per month. Cbeyond also offers packages with up to 48 phone lines, 9,000 minutes of local and long distance and 4.5 Mbps symmetric Internet access. In addition to the core packages, Cbeyond offers enhanced applications such as fax-to-email, Web hosting, virus and spam filtering, offsite PC backup and managed firewall, to name a few.

Cbeyond customers can also take advantage of BeyondMobile, the first mobile service designed specifically for small businesses. Each mobile line starts at $40 per month and includes 500 anytime minutes, nationwide local and long distance with no roaming, advanced applications such as text messaging and picture mail, and an industry-leading six cents per minute for additional minutes.

About Cbeyond

Cbeyond (Nasdaq: CBEY) is an Atlanta-based managed services provider that delivers integrated packages of voice and broadband services to small businesses in Atlanta, Dallas, Denver, Houston, Chicago and Los Angeles. Cbeyond offers core communications services like local and long-distance voice and broadband Internet access along with enhanced applications, including voicemail, email, Web hosting, data backup, file-sharing, VPN and more. Cbeyond manages these services over a private, 100-percent Voice over Internet Protocol (VoIP) facilities-based network. For more information on Cbeyond, visit www.cbeyond.net.