DSL.net Closes First Installment of $15 Million Investment.Business Editors NEW HAVEN New Haven, city (1990 pop. 130,474), New Haven co., S Conn., a port of entry where the Quinnipiac and other small rivers enter Long Island Sound; inc. 1784. Firearms and ammunition, clocks and watches, tools, rubber and paper products, and textiles are among the many , Conn.--(BUSINESS WIRE)--Dec. 5, 2001 DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary .net, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : DSLN), a leading, nationwide, direct provider of high-speed Internet See broadband. access solutions for small- and medium-sized businesses, today announced that it has recently closed an initial $6 million financing tranche, as part of a previously announced $15 million total investment transaction. The total investment from VantagePoint Venture Partners, a private investment firm with more than $2.5 billion under management, is expected to fund the company through cash flow positive, which is expected to occur in the third quarter of 2002, based on the company's current plans and projections. In addition to the initial $6 million installment, VantagePoint has agreed to invest an additional $9 million in two installments, closing on or after December 10, 2001 and February 28, 2002, respectively, subject to the achievement of certain business objectives by DSL.net. Additionally, VantagePoint may elect to invest an additional $5 million at the subsequent closings. "This first tranche of $6 million clearly signals VantagePoint's belief in our unique business model and our management's team ability to execute," said David F. Struwas, chairman and chief executive officer. "We are pleased and gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. to receive such a strong show of support as we continue to accelerate down a path to profitability." Keith Markley, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. commented, "With this cash infusion, DSL.net is well on its way to achieving its operational and financial goals of becoming cash flow and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become positive by the third quarter of 2002. This funding now positions us to continue capitalizing on the strong demand that exists in the broadband marketplace." About DSL.net Based in New Haven, Conn., DSL.net, Inc. is a high-speed data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. and Internet access provider See ISP. (networking, company) Internet Access Provider - (IAP) A company or other origanisation which provides access to the Internet to businesses and/or consumers. that uses digital subscriber line See DSL. (communications, protocol) Digital Subscriber Line - (DSL, or Digital Subscriber Loop, xDSL - see below) A family of digital telecommunications protocols designed to allow high speed data communication over the existing copper telephone lines between end-users and technology to provide high-speed Internet access solutions to small- and medium-sized businesses throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . DSL.net allows smaller businesses to migrate their operations online and more effectively compete in the Internet economy The Internet Economy refers to conducting business through markets whose infrastructure is based on the Internet and World-Wide Web. An Internet economy differs from a traditional economy in a number of ways, including: communication, market segmentation, distribution costs, and price. . For more information on DSL.net, visit www.dsl.net, e-mail info@dsl.net, or call 1-877-DSL-NET1 (1-877-375-6381). 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 include, among others, statements regarding DSL.net's forecasts of financial and operating plans and results. These statements and other 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 effect 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, which may not be achieved if DSL.net's sales force is not able to generate sufficient sales to customers or if DSL.net is not able to install and commence service for customers in a timely manner; (iv) the completion of the sale of convertible redeemable preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. to VantagePoint Venture Partners in the remaining installments is subject to the achievement of certain business objectives, which may or may not be achieved; (v) even if the VantagePoint Venture Partners transaction is completed, DSL.net's independent accountants may include a "going concern" qualification in their audit report on DSL.net's 2001 financial statements due to the timing of the VantagePoint investment or changing business conditions; (vi) if the VantagePoint Venture Partners transaction is not completed, DSL.net's need for additional funds, which may not be available on acceptable terms or at all, which could adversely impact DSL.net's ability to implement its business plan and continue as a "going concern," and which has resulted in DSL.net's independent accountants including a "going concern" qualification in their audit report on DSL.net's 2000 financial statements; (vii) 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; (viii) the challenges relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the timely installation of service for customers, including DSL.net's dependence on traditional telephone companies to provide acceptable telephone lines in a timely manner; (ix) DSL.net's dependence on wholesale DSL providers to provide it with local DSL facilities in areas where it has not deployed its own DSL equipment; (x) the need for DSL.net to achieve sustained market acceptance of its services at desired pricing levels; (xi) competition; (xii) DSL.net's extremely limited operating history, which makes it difficult to evaluate its business and prospects; (xiii) the difficulty of predicting the new and rapidly evolving high-speed data communications industry; (xiv) regulatory, legislative, and judicial developments, which could adversely affect the way DSL.net operates its business; and (xv) DSL.net's ability to recruit and retain qualified personnel, establish the necessary infrastructure to support its business, and manage the growth of its operations. 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2000, and under "Additional Risk Factors" in its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended September 30, 2001, each of which has been filed with the Securities and Exchange Commission. DSL.net's authority to provide certain regulated services is held by its subsidiary companies. DSL.net is a trademark of DSL.net, Inc. |
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