DSL Colocation Auction Offers Cost-Effective Entry Into Regional Small Business Market.

Business Editors/High Tech Writers

NEW YORK--(BUSINESS WIRE)--Oct. 22, 2001

ARC Coordinates RBOC Interconnect Agreements to Reactivate 

Maverix.net and Jato Sites

Asset Recovery Corporation (ARC), a leading provider of asset-channeling services, announced today the sealed-bid auction sale of more than 500 installed colocations of former DSL providers Maverix.net and Jato Communications.

With footprints located in major metropolitan areas throughout the United States, each colocation facility contains more than $60,000 of installed equipment and cost in excess of $120,000 for the original build-out.

Through the ARC auction, companies can purchase a fully equipped colocation facility at a fraction of the original cost, offering an efficient way to enter the growing small business DSL market. ARC will introduce the successful bidders to the appropriate contacts at Qwest, SBC Communications, Bell South, and Cincinnati Bell -- the RBOCs (regional bell operating companies) who house the footprints and provide the interconnection for the lines. ARC has also developed a step-by-step transfer process plan that will ensure quick reactivation of the colocation facilities.

CLECs (Competitive Local Exchange Carriers) and other interested parties can take part in the sealed-bid auction by registering at ARC's Web site (www.ArecoveryCorp.com), where bid packages are available for viewing and downloading. Bidding for the nearly 80 Maverix.net colocations began October 8th and continues through October 26th. The auction of Jato Communications' 492 facilities will take place in three stages, from mid-October through November.

"The key to retaining maximum value for the colocations was keeping the equipment installed and ensuring easy reactivation. We worked closely with the RBOCs and creditors, offering a win-win for all parties involved," said Reid Krakower, CEO of Asset Recovery Corporation. "The auction allows DSL providers to quickly penetrate regional markets at a fraction of the cost it would take to build out new facilities."

Despite recent fluctuations in the telecom sector, small business demand for DSL connection has not waned. In a recent report, IDC forecasts that small business DSL lines will increase from 60,000 in 1999 to more than 2.5 million in 2003. The report also cites that by 2003, small business will represent 20 percent of all DSL lines and 76.6 percent of all business DSL lines.

The Maverix.net colocations are located in the following metropolitan markets: Milwaukee, Wisconsin; Oklahoma City and Tulsa, Oklahoma; Indianapolis, Indiana; Kansas City, Missouri; Dayton, Ohio; and Little Rock, Arkansas.

Jato's installations are located in the metropolitan centers of the following states: Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Nevada, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Washington and Wisconsin. A complete list of cities and respective facility numbers can be found on the ARC Web site.

About Asset Recovery Corporation

Headquartered in New York City, Asset Recovery Corporation (www.arecoverycorp.com) offers a wide range of disposition services including strategic liquidations and sales of complete or partial facilities, as well as fixed asset and inventory appraisals. Through its asset-channeling strategies, ARC helps businesses regain maximum value for under-performing and non-performing assets. The Company's creative solutions and consulting services have made it a leader in the asset disposition industry for more than 13 years.