Everest Broadband Networks acquires Metrocomm International.

Everest Broadband Networks, one of the leaders in the fast-growing building local exchange carrier (BLEC) telecommunications market, today announced its acquisition of Metrocomm International Inc. The acquisition is Everest's first and is in line with its core strategy of becoming one of the industry's leading building service providers (BSP) by sustaining aggressive growth through both organic expansion and acquisition. Financial terms were not disclosed.

Manhattan-based Metrocomm International is a pioneer building telecommunications carrier with a broad and profitable customer presence throughout the New York region. Its portfolio of multi-tenant unit (MTU) properties and customers under contract is highly complementary to Everest's. Metrocomm's IP-over-Ethernet network model will readily facilitate Everest's delivery of an unprecedented scope of integrated transport services, managed network services and strategic business applications that will make information-driven businesses more competitive, without requiring them to divert substantial internal resources into IT infrastructure management.

"Everest has a pragmatic and fiscally sound approach to service delivery," said Dario Gristina, chairman and chief executive officer of Metrocomm International Inc. "Equally important is its array of innovative transport and application services backed by distinctive technology, its solid real estate partnerships and alliances throughout the world, and an experienced management team with a telephone service-revenue track record. This makes Everest the natural partner to help us achieve our next level of market penetration, customer satisfaction, and service profitability. We are delighted to be joining the Everest team and look forward to aggressively contributing to Everest's growing market leadership."

Everest, in its first six months of operations, has more than 150 million sf of commercial, residential and hospitality space under contract through access agreements with more than 60 leading property owners, real estate trusts and strategic partnerships throughout the U.S. and Canada. These buildings include the Chrysler Center and the OM Building at the Trump International Plaza in New York, the Chicago Merchandise Mart and the Pacific Design Center in Los Angeles.

The addition of Metrocomm's buildings and customers adds substantially to Everest's portfolio of lit buildings and current revenue stream, and complements Everest's profitable-when-lit customer acquisition strategy.

"As impressive as our growth in contract signings has been to date, Everest's leadership potential as a BSP is even more powerfully demonstrated by our breadth am speed of service delivery, and the number of key owner and customer wins in record time," said Jeffrey Feldman, president and chief executive officer of Everest Broadband Networks. "We scrupulously evaluate potential acquisition opportunities that will match our internally-driven growth and view Metrocomm as the first of many acquisitions to execute that strategy."

For existing Metrocomm customers the changeover will be transparent. Over the next several months, Everest will bring these small and medium-size businesses access to much-needed, integrated broadband transport services, managed network services and business applications such as IP Fax and network security. They will also benefit from Everest's unique multi-media content delivery and its innovative approach to integrated customer support for comprehensive, single source ordering and problem resolution for all services.

Everest is also adding new tenants in the Metroconun facilities, increasing each building's customer ratios and total revenues to achieve consistency with Everest's business model and facilities requirements.