DSL.net Gains Access to Financing Proceeds; Funds Related to Transaction Completed in Fourth-Quarter 2004.

NEW HAVEN, Conn. -- DSL.net, Inc. (AMEX: BIZ), a leading nationwide provider of broadband communications services to businesses, said today that it has received approval from its senior secured note-holders to use the entire proceeds from the $5.0 million financing that the Company closed in the fourth quarter of 2004.

In October 2004, the Company borrowed $4.25 million pursuant to a secured term note and established a $750,000 line of credit, which the Company has not drawn down. The Company's use of these funds was subject to approval by DSL.net's senior secured note-holders. Now that the proceeds of the financing have been made fully available to the Company, all restricted cash attributable to this financing and included in the Company's balance sheet as of December 31, 2004, is now unrestricted.

"This is very good news for DSL.net because it provides us with additional capital to further our pursuit of strategic and financing objectives," said Kirby G. "Buddy" Pickle, chief executive officer of DSL.net. "To that end, we announced last month that we have retained an investment banker to explore strategic and financing alternatives that would allow us to leverage our well-positioned network assets, subscriber base and VoIP (voice over Internet protocol) capabilities in the best interests of the Company and its stockholders."

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, DS-3 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).

This press release may contain 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, and, to the extent it does, 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 associated with DSL.net's business include, among other things, (i) DSL.net's unproven business model, which may not be successful; (ii) DSL.net's ability to raise sufficient additional capital on acceptable terms, or at all, to finance continuing operations or DSL.net's pursuit of strategic opportunities; (iii) DSL.net's failure to generate sufficient revenue, contain certain discretionary spending, achieve certain other business plan objectives, or obtain additional debt or equity financing could have a material adverse effect on DSL.net's results of operations or financial position, or cause it to restructure its operations to further reduce operating costs or to cease operations; (iv) DSL.net's ability to maintain compliance with the American Stock Exchange's continuing listing requirements, which failure could adversely impact the pricing and trading of DSL.net's common stock; (v) regulatory, legislative and judicial developments, which could adversely affect the way DSL.net operates its business or increase its costs of operations; (vi) risks associated with potential financing, strategic and/or merger and acquisition transactions, including, without limitation, difficulties in identifying and completing any of such transactions, integrating businesses or assets and realizing the revenue, earnings or synergies anticipated from any transactions; (vii) competition; (viii) the marketplace's receptiveness to DSL.net's offering of integrated voice and data services; (ix) DSL.net's ability to recruit and retain qualified personnel; and (x) DSL.net's dependence on third-party providers to supply it with local DSL and T-1 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, 2004, 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.