DSL.net Secures Credit Facility, Moves Quickly to Integrate NAS Network Assets, Customers, Employees.

Business Editors/High-Tech Writers

NEW HAVEN, Conn.--(BUSINESS WIRE)--Jan. 17, 2003

DSL.net, Inc. (NASDAQ: DSLN)

$6.1 Million Currently Available under Revolving Credit 

Facility; Consolidation Under Way to Further Reduce Costs,

Improve Efficiencies

DSL.net, Inc. (NASDAQ: DSLN), a leading nationwide provider of broadband communications services to businesses, today announced that it has arranged a $15 million revolving credit facility, under which $6.1 million is currently available.

The Company also announced that it has taken steps to integrate network assets, customers and employees it recently acquired from Network Access Solutions Corporation (NAS) of Herndon, Va.

The credit facility has a five-year term. During the first two years, DSL.net will be able to draw funds on a revolving basis and be required to make interest-only payments. At the end of this two-year period, any drawn amounts under the facility will be repaid over a three-year period. Availability under the facility is based on the amount of guarantees received by the bank from certain of DSL.net's stockholders.

"The new credit facility will be available for general corporate purposes," said Robert J. DeSantis, chief financial officer of DSL.net. "We're pleased to have been able to arrange for this additional funding to support our continued growth. We believe that this financing demonstrates our investors' confidence in our financial prospects."

Commenting on the integration of the acquired NAS network assets, customers and employees, David F. Struwas, chairman and chief executive officer of DSL.net, said: "We have already moved quickly to identify synergies and taken decisive actions to trim costs and eliminate organizational redundancies."

DSL.net has taken the following steps:

- Contacted subscribers that are serviced by the NAS network assets acquired by DSL.net to inform them of the ownership change, minor changes to their invoice and the new mailing address for payment.

- Established a DSL.net-NAS customer center to provide additional information and receive feedback regarding any customer issues (www.dsl.net/nas-support).

- Evaluated all positions within the organization and moved to reduce the combined workforce by about 15 percent to approximately 225 employees.

- Began to implement a plan to further trim costs -- without impacting the reliability and quality of services - by identifying overlaps in the areas of facilities, operational support and network coverage.

DSL.net will discuss the expected financial and operational impact of the acquisition of the NAS network assets and related subscriber lines as part of its fourth quarter and year-end analysts' conference call, which is currently expected to occur on or before mid-March 2003.

About DSL.net

Based in New Haven, Conn., DSL.net, Inc. combines its own DSL facilities, nationwide network infrastructure, and Tier I Internet Service Provider (ISP) capabilities to provide high-speed Internet access and value-added services directly to small- and medium-sized businesses throughout the United States. A certified CLEC in all 50 states, plus Washington, D.C. and Puerto Rico, DSL.net sells to businesses, primarily through its own direct sales channel. DSL.net augments its direct sales strategy through select system integrators, application service providers and marketing partners. In addition to a number of high-performance, high-speed Internet connectivity solutions specifically designed for businesses, DSL.net product offerings include Web hosting, DNS management, enhanced e-mail, online data backup and recovery services, firewalls, virtual private networks and nationwide dial-up services. For more information on DSL.net, visit www.dsl.net, e-mail [e-mail], 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, including, without limitation, those regarding the integration of the acquired NAS assets with DSL.net's assets and the availability of funds under DSL.net's credit facility, 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) the successful integration of the acquired NAS assets into DSL.net, (ii) DSL.net's ability to realize the revenue, earnings and synergies anticipated from the acquisition of the NAS assets, (iii) the availability of funds under DSL.net's credit facility, which is subject to, among other things, the receipt of certain guarantees, (iv) market demand for DSL.net's products and services, (v) DSL.net's ability to recruit and retain qualified personnel and manage the growth of its business, (vi) competition and (vii) regulatory, legislative and judicial developments, all of which could adversely affect the way DSL.net operates its business. 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, 2001, 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.