Commonwealth Telephone Enterprises Partners with iBEAM to Deliver Streaming Media Through its Network; CTE Will Deliver Streaming Content to its Jack Flash DSL Customers.

Business Editors

DALLAS, Penn.--(BUSINESS WIRE)--July 26, 2000

Commonwealth Telephone Enterprises, Inc. ("CTE") (NASDAQ: CTCO, CTCOB) announced today that it has reached an agreement with iBEAM Broadcasting(R) Corporation (NASDAQ: IBEM), the leading Streaming Media Network, to deliver high-fidelity streaming media to its customers via iBEAM's hybrid satellite and fiber platform. The iBEAM platform broadcasts directly to points of presence on CTE's network.

Under the agreement, CTE will deploy iBEAM's MaxCaster media serving systems to deliver uninterrupted live and on-demand streaming content to CTE's Jack Flash(SM) customers. Jack Flash(SM) is CTE's DSL (digital subscriber line) product that delivers broadband data services to customers throughout CTE's service territories.

This relationship with iBEAM will allow CTE to provide VHS-quality video and CD-quality audio streams from leading content providers to its customers. To provide better performance to Internet users, iBEAM's specialized broadcast infrastructure uses a combination of satellite and dedicated fiber to bypass packet loss and bottlenecks that often plague the Internet.

"By partnering with iBEAM, we are able to deliver superior, next-generation content and make the Internet faster for our end-users," said James F. Samaha, senior vice president - business development for CTE. "This type of service adds new functionality and value to our DSL product. We are continuously researching and implementing new Internet technologies such as this, so that we can enhance the Internet experience for our customers. This type of technology is evidence that CTE is moving into new and exciting applications for the last mile of our broadband network."

Additionally, CTE and iBEAM have jointly developed a custom channel guide that will carry the Jack Flash(SM) branding for use exclusively by CTE's customers. The channel guide will enable users to easily and conveniently locate the broadband content provided to the CTE network by iBEAM's servers. The guide will be launched this week on the Jack Flash(SM) web site (www.jackflash.com).

"Partnering with CTE enables us to continue our goal of building out our Internet Broadcast Network," said Tom Gillis, vice president of marketing for iBEAM. "This deal enables CTE the ability to provide powerful, high-fidelity streaming video and audio. By avoiding the congestion of the Internet, CTE's broadband users experience the full potential of their broadband connections."

For more information about CTE's Jack Flash(SM) broadband service, call 1-888-977-JACK or visit www.jackflash.com.

About CTE

Headquartered in Dallas, PA, Commonwealth Telephone Enterprises, Inc., is a diversified telecommunications company providing advanced solutions to deliver communications, information and entertainment services to business and residential users in a rapidly expanding set of select United States markets.

CTE's primary operating segments are: Commonwealth Telephone Company, the nation's ninth largest independent incumbent local exchange carrier ("ILEC"), which has been operating in various rural Pennsylvania markets since 1897; and, CTSI, Inc., an integrated communications provider ("ICP") that commenced operations in 1997 and is focused on tier-two and tier-three markets. CTE's support businesses include epix(TM) Internet Services (www.epix.net), one of the northeast's largest rural ISPs, with over 47,000 dial-up Internet access subscribers; and Jack Flash(SM), a broadband data service that uses DSL technology to offer high-speed Internet access and digital connectivity solutions in a rapidly growing set of CTE markets. Additionally, CTE operates two other support businesses that provide expertise to its ILEC and ICP operations. These businesses are Commonwealth Communications, a provider of telecommunications equipment and facilities management services; and CLD, a switch-based long-distance reseller.

A web site featuring current information regarding Commonwealth Telephone Enterprises, Inc. can be found on the Internet at www.ct-enterprises.com.

About iBEAM Broadcasting Corporation

iBEAM Broadcasting Corporation, headquartered in Sunnyvale, CA, was founded by data communications, television and telecommunications professionals in 1998. iBEAM provides an Internet broadcast network that delivers streaming media to large audiences with viewing and listening quality that approaches television and radio. iBEAM's customers include media, technology and entertainment companies. For more information about iBEAM's broadcasting services, visit http://www.ibeam.com, or contact the company at 65 Almanor Avenue, Suite 100, Sunnyvale, CA 94086, telephone [phone].

Forward-Looking Statements Regarding Commonwealth Telephone Enterprises, Inc.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release is forward-looking. Such forward-looking information involves important risks and uncertainties that could significantly affect results expressed in any forward-looking statements made in this press release. These risks and uncertainties include, but are not limited to, uncertainties related to the Company's ability to penetrate new markets and the related costs of that effort, economic conditions, acquisitions and divestitures, government and regulatory policies, the pricing and availability of equipment, materials and inventories, technological developments and changes in the competitive environment in which the Company operates.

iBEAM' Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

The statements contained in this release relating to iBEAM's ability to significantly improve streaming media quality for Internet end-users and the deployment of iBEAM's streaming media services to the market are forward-looking statements. Actual results may differ materially from those anticipated in any forward-looking statement as a result of certain risks and uncertainties, including, without limitation, the early stage of iBEAM's operating history and the industry for Internet broadcast services, iBEAM's ability to build its network to the edge of the Internet, iBEAM's ability to manage its expansion and raise additional capital and the complexity of iBEAM's broadcast network. For other risks and uncertainties applicable to iBEAM's business, investors are encouraged to refer to iBEAM's S-1 Registration Statement, as amended filed in connection with iBEAM's recent initial public offering.