Citizens Communications Rolls Out Elastic Networks' EtherLoop Based DSL in West Virginia Markets.

Business Editors & Technology Writers

ALPHARETTA--(BUSINESS WIRE)--Jan. 16, 2001

Stringent Field Testing Yields Impressive Results

Elastic Networks Inc. (NASDAQ: ELAS), announced today Citizens Communications, the nations 8th largest telephone service provider, is deploying Elastic Networks' Storm System DSL solution in 10 Central Offices and 28 remote sites in West Virginia.

Citizens plans to launch high-speed Internet service using EtherLoop(TM) technology in the first quarter of 2001. The selection of EtherLoop was based on the results of rigorous technical field tests, in which EtherLoop met or exceeded Citizens' requirements for speed, deployability, and market coverage.

"We tested EtherLoop extensively, using some of our most challenging copper plant, to verify the technology's reach, ease of deployment, and bi-directional bandwidth," said Dean Hudson, Vice President Network Planning and Engineering for Citizens Communications Company. "We are pleased to announce that EtherLoop met and exceeded our requirements and removed some of the roadblocks to full scale DSL service deployment."

"Dozens of carriers, like Citizens Communications, have discovered that EtherLoop consistently outperforms conventional DSL, even under harsh conditions and extended distances," said Guy Gill, CEO for Elastic Networks. "We are proud to have the opportunity to partner with Citizens in their high-speed Internet access service roll out."

Citizens' testing process compared EtherLoop to conventional ADSL. All tests were performed on the existing copper plant infrastructure, with no adjustments to the loops. Impressively, EtherLoop passed all four classes of tests on the first attempt. Citizens' tests verified EtherLoop provides additional flexibility compared to conventional DSL as demonstrated by EtherLoop's: ability to work over distances of 21,000 feet; spectral compatibility with competing services such as HDSL and T1; ability to operate over wire gauge changes and bridged taps; and ability to "fill" a binder without restriction.

Elastic Networks Storm System of intelligent IP-based solutions deliver bi-directional bandwidth at speeds up to 6 Mbps and distances of 21,000 feet over existing copper telephone lines, without the need for costly loop engineering or binder management. Comprised of the BitStorm IP DSL Access Multiplexer, Layer 3 IP Switch, Subscriber Management Gateway/Controller and the BitStorm Server, the Storm System transforms regular telephone twisted pair wiring into a high-speed, IP-based Local Area Network, capable of supporting lifeline voice services as well as voice over IP, secure network-based VPNs, multicast streaming audio and video, interactive gaming, enhanced chat rooms, web caching, and localized web hosting for business, consumer and entertainment services.

About Citizens Communications

Citizens Communications (NYSE: CZN, CZPr) is a full-service telecommunications provider serving more than 1.4 million rural and suburban access lines in 17 states. Citizens Communications is acquiring an additional 2 million telephone lines over the next 12 months and is in the process of divesting its natural gas, electric, water and wastewater treatment services. Citizens Communications also owns 86 percent of Electric Lightwave, Inc. (NASDAQ: ELIX), a facilities-based, integrated communications provider that offers a broad range of services to telecommunications-intensive businesses throughout the United States. Additional information about Citizens Communications is available at www.czn.net.

About Elastic Networks Inc.

Elastic Networks is a leader in innovative, next-generation DSL technology and high-speed Internet access solutions, enabling telecommunications service providers to easily offer affordable broadband services that simplify the way people connect. By leveraging its technological differentiation in speed, deployability, and economics, and by building strategic relationships with distributor, chip manufacturing, and data networking partners, Elastic Networks continues to increase the pervasiveness of its innovative technology in markets throughout the world. The company has offices in Alpharetta, GA, Toronto, Ontario, and Hong Kong.

For more information about Elastic Networks and its high-speed access and subscriber management solutions, visit www.elastic.com, www.speedupamerica.com. or contact Elastic's U.S. headquarters in Alpharetta, Georgia, at (678)-297-3100. For investor information e-mail Elastic at [e-mail], or call [phone].

Citizens Communications Forward Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These and all forward-looking statements are only predictions or statements of current plans that are constantly under review by the company. Such statements are qualified by important factors that may cause actual results to differ from those contemplated, including those factors detailed from time to time in the company's Securities and Exchange Commission filings. The foregoing information should be read in conjunction with the company's filings with the U.S. Securities and Exchange Commission including, but not limited to, reports on Forms 10-K and 10-Q. The company has no obligation to update or revise these forward-looking statements to reflect the occurrence of future events or circumstances.

Elastic Networks Forward Looking Statements

Certain of the statements contained in this release are forward-looking statements (rather than historical facts) that are subject to risks and uncertainties that could cause actual results to differ materially from those described. With respect to such forward-looking statements, the Company seeks the protections afforded by the Private Securities Litigation Reform Act of 1995. These risks include, without limitation, (1) that the Company may fail to be competitive with existing and new competitors, (2) that the Company may not maintain or grow its level of revenues, given its currently limited customer base, (3) that the Company's limited number of product offerings may fail to achieve widespread market acceptance, (4) that negative changes in customer demands and requirements regarding our prices, technology and products may occur, (5) that DSL technology may fail to achieve widespread market penetration, (6) that interruptions or disruptions in our product shipments and/or our various arrangements with our distributors, manufacturers or resellers may negatively impact our ability to make sales and/or minimize our costs, (7) that the Company may not adequately respond to technological and regulatory developments impacting the telecommunications industry, (8) that needed financing may not be available to the Company if and as needed, (9) that a decline in the size and potential growth of the MTU, carrier and international markets for our technology may occur, (10) that a significant reversal in the trend toward increased usage of the Internet may occur, (11) that a drastic, negative change in the U.S. economy or market conditions may occur, and (12) that some other unforeseen difficulties may occur from time to time. This list is intended to identify certain of the principal factors that could cause actual results to differ materially from those described in the forward-looking statements included elsewhere herein. These factors are not intended to represent a complete list of all risks and uncertainties inherent in the Company's business, and should be read in conjunction with the more detailed cautionary statements included elsewhere in the Company's most recent filings with the SEC.