DSL.net Closes $30 Million Financing Led by Deutsche Bank.

Business Editors/High-Tech Writers

NEW HAVEN, Conn.--(BUSINESS WIRE)--July 21, 2003

Company Funded to Grow Business, Reach Cash-Flow Positive;

Deutsche Bank Now Among Company's Strong Institutional Investors

DSL.net, Inc. (NASDAQ: DSLN), a leading nationwide provider of broadband communications services to businesses today announced it has closed a $30 million financing with institutional investors led by Deutsche Bank. VantagePoint Venture Partners, one of DSL.net's current major institutional shareholders, is the other participant in the financing.

"This investment, led by such a prominent institutional investor as Deutsche Bank, further validates our belief that DSL.net is well-positioned to expand its business, generate cash flow and create significant value for its shareholders," said David F. Struwas, chairman and chief executive officer of DSL.net. "Being supported by a strong investor group, we intend to continue to grow our business both internally and through strategic acquisitions as we pursue our goal of being one of the clear winners in the consolidation of the business broadband sector."

The financing will fund the Company to become cash-flow positive based on its current plans and projections. The majority of the proceeds are expected to be used to accelerate the roll out of DSL.net's recently introduced integrated voice and data product offering over the Company's extensive broadband network in the Mid-Atlantic and Northeast regions, fund strategic acquisitions and retire outstanding debt at a discount.

"We are extremely pleased to have secured $30 million to finance DSL.net's growth initiatives," said Robert J. DeSantis, chief financial officer of DSL.net. "We believe DSL.net will continue to benefit from the growing demand for business-class broadband services and we welcome Deutsche Bank as an active supporter of the Company. Adding Deutsche Bank to our already impressive group of institutional investors provides the Company with another formidable financial partner."

DeSantis added that DSL.net "met all of the criteria of the investors: a substantial subscriber and recurring revenue base; its own network facilities in key markets; a growth- and shareholder-oriented management team; and current financial performance within striking distance of cash-flow positive."

The financing package is comprised of $30 million of three-year senior secured notes, bearing interest at 1.23% per annum, and warrants to purchase approximately 158 million shares of DSL.net common stock for $.38 per share. The warrants are exercisable for three years. Warrants to purchase approximately 13 million shares were issued in connection with the initial closing. Issuance of the remaining warrants is subject to stockholder approval. Stockholders holding sufficient shares to approve this issuance have committed to vote for approval.

With this funding secured, the Company plans to take the following actions:

-- Accelerate the roll out of integrated voice and data service

offerings on SDSL and T-1 platforms in Washington, DC, New

York City, Boston and parts of Connecticut;

-- Continue to pursue strategic acquisitions; and

-- Increase sales and marketing activities in conjunction with

the new product offerings and market opportunities.

The Company intends to update its financial and operating outlook during its second quarter 2003 investor conference call, which will be held in early August at a date and time to be announced shortly.

About DSL.net

DSL.net, Inc. is a leading nationwide provider of broadband communications services to businesses. The Company combines its own facilities, nationwide network infrastructure and Internet Service Provider (ISP) capabilities to provide high-speed Internet access, private network solutions and value-added services directly to small- and medium-sized businesses or larger enterprises looking to connect multiple locations. DSL.net product offerings include T-1 and business-class DSL services, virtual private networks (VPNs), frame relay, Web hosting, DNS management, enhanced e-mail, online data backup and recovery services, firewalls and nationwide dial-up services; as well as integrated voice and data offerings in select markets. For more information, visit www.dsl.net, e-mail [e-mail] or call 1-877-DSL-NET1 (1-877-375-6381).

About Deutsche Bank

With roughly EUR 802 billion in assets and approximately 70,900 employees, Deutsche Bank (NYSE: DB) offers its 13 million clients unparalleled financial services in 76 countries around the world. The Bank aspires to be a leading global provider of integrated financial solutions for demanding clients and the pre-eminent bank in Germany generating exceptional value for its shareholders and people.

Deutsche Bank ranks among the global leaders in corporate banking and securities, transaction banking, asset management, and private wealth management, and has a significant private and business banking franchise in Germany and other selected countries in Continental Europe. (www.deutsche-bank.com)

About VantagePoint Venture Partners

VantagePoint Venture Partners is one of the nation's largest venture capital firms with $2.5 billion in committed capital in four funds. The Firm is an active multi-stage investor, providing funding and resources for all stages of a company's lifecycle from seed round through late stage and privately negotiated investments in public companies. VantagePoint is based on a full-service Partner-Team approach that provides entrepreneurs with a blend of technology, venture capital, operations, and corporate-finance expertise. As hands-on investors, the Firm is focused on technology investing in communications, semiconductor, software and related growth industries. (www.vpvp.com)

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to a variety of risks and uncertainties, many of which are beyond DSL.net's control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. In particular, the risks and uncertainties include, among other things, (i) fluctuations in DSL.net's quarterly operating results, which could adversely affect the price of its common stock; (ii) DSL.net's unproven business model, which may not be successful; (iii) DSL.net's ability to execute its business plan in a timely manner to generate the forecasted financial and operating results and liquidity; (iv) the risk that the stockholders do not approve the matters required for the issuance of the remaining warrants to purchase shares of DSL.net's common stock in connection with this financing or that other conditions to the issuance of the remaining warrants are not satisfied or waived within 180 days, in which case DSL.net may be obligated to then repay the $30 million notes; (v) failure to generate sufficient revenue, contain certain discretionary spending or achieve certain other business plan objectives could have a material adverse effect on DSL.net's results of operations or financial position; (vi) risks associated with acquisitions, including difficulties in identifying and completing acquisitions, integrating acquired businesses or assets and realizing the revenue, earnings or synergies anticipated from any acquisitions; (vii) risks associated with the completion of DSL.net's pending acquisition of assets and subscriber lines from TalkingNets, Inc.; (viii) competition; (ix) risks associated with the possible removal of DSL.net's common stock from the Nasdaq SmallCap Market, which removal could adversely impact the pricing and trading of DSL.net's common stock; (x) regulatory, legislative and judicial developments, which could adversely affect the way DSL.net operates its business; and (xi) DSL.net's dependence on wholesale providers to provide it with local DSL and T1 facilities in areas where it has not deployed its own equipment. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. DSL.net undertakes no obligation, and disclaims any obligation, to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise. For additional information regarding these and other risks faced by DSL.net, see the disclosure contained under "Risk Factors'' in DSL.net's Annual Report on Form 10-K for the year ended December 31, 2002, which has been filed with the Securities and Exchange Commission.

DSL.net is a trademark of DSL.net, Inc. Other company names may be trademarks of their respective owners.