Fibertech Networks Announces 2005 Results; Reports 44% Growth in Recurring Revenue and Record Profitability.

ROCHESTER, N.Y. -- Fibertech Networks, LLC, a leader in providing metropolitan bandwidth services in mid-size cities, today reported its second consecutive year of profitability and announced a 44% increase in recurring revenue.

In 2005, Fibertech added $8.5 million in annual recurring run-rate revenue under lease, bringing that number to over $28 million. In addition to that lease revenue, the company's 2005 sales contracts also brought in $15 million in upfront cash deals.

"We are extremely proud of our second consecutive year of profitability and overachievement in sales," said John K. Purcell, President and CEO of Fibertech Networks. "This year's results are critical to our long-term stability and growth. It helps us plan for future growth while ensuring our short-term financial position."

Other Sales, Operating and Financial Highlights

--Sold 190 new customer contracts in 2005, a 68% increase over 2004.

--Sold more than $75 million in new sales contracts. Since start-up in 2000, Fibertech now has sold $336 million in total contracts.

--Added more than 500 network route miles in service bringing the total to more than 3,000 route miles and 300,000 fiber miles. The company expects to add 500 additional route miles in 2006.

--Built networks in Concord, N.H. and White Plains, N.Y., bringing the total number of markets to 20. Fibertech plans to add 2-3 additional markets in 2006.

--Ended 2005 with 85 employees. The company expects to add 21 employees in 2006.

--Generated $8 million in EBITDA, up from less than $1 million in 2004.

--Fibertech continued its record of a strong balance sheet, ending 2005 with $8 million in total debt and $7 million in cash on hand. The company holds $110 million in network assets.

--Fibertech will invest approximately $17 million from internally generated funds for its 2006 expansion plans.

"Customer demand is pulling us into new markets, and into enhanced services. This type of demand and support from new and existing customers will help us continue our strong momentum into 2006," added Purcell.

About Fibertech Networks

Headquartered in Rochester, N.Y., Fibertech Networks is a leader in building and operating fiber optic networks throughout mid-size cities in the Eastern and Central regions of the United States. The company has built metro-area networks strategically connecting local Telco central offices, carrier hotels, data centers, office parks and other high traffic locations.

Founded in 2000 and privately held, Fibertech investors are led by Nautic Partners of Providence, R.I., and Banc of America Capital Investors of Charlotte, N.C. Further information about the company can be found at www.fibertech.com.