Net2000 Expands Availability of Collocation Services.

Business Editors/Hi-Tech Writers

HERNDON, Va.--(BUSINESS WIRE)--Aug. 28, 2001

Net2000 Communications, Inc. (Nasdaq:NTKK), a competitive provider of broadband telecommunications services for businesses, announced that its suite of collocation benefits are now being offered by its entire direct sales force and network of sales agents in the mid-Atlantic and Northeast regions.

The collocation services will be available in all of the company's seven central office facilities.

Collocation is an arrangement allowing a telecommunications carrier or company to lease space at another carrier's premises to store and host equipment and data. For example, a website owner could place the site's own computer servers on the premises of the Internet service provider (ISP).

Alternately, an ISP could place its network routers on the premises of the company offering switching services to other ISPs.

According to a July 2001 Yankee Group report, worldwide revenue of collocation services for 2001 is $3.6 billion, and expected to reach $10 billion by 2005.

Since 1999, Net2000 has been providing collocation services to Internet service providers (ISPs), application service providers (ASPs), and content providers on a wholesale basis.

By offering collocations services through retail sales channels, today's announcement signals a rapid expansion of the availability of Net2000's collocation arrangements for safe storage and protection of mission-critical hardware and information.

"In today's technology sector, the stakes are high to not only reduce costs but also ensure that the quality of networks is maintained and secure - that's why Net2000's collocation service is such an attractive option for customers," said Charlie Thomas, Net2000 chief executive officer. "We offer medium and large businesses a cost-effective and reliable alternative to constructing and maintaining an in-house facility, thereby dramatically eliminating that costly operating expense. Plus, we offer companies the benefit of a direct connection to Net2000's high-speed, broadband telecommunications services."

Customers choosing to collocate with Net2000 will have access to the core benefits that ensure sensitive equipment and information reside in a secure and reliable environment.

Retail sales channels will allow end user customers as well as ISPs, ASPs and content providers to experience Net2000's around-the-clock security, reliability, and network redundancy for mission critical equipment, all at a competitive price.

Highlights of Net2000's collocation service features and benefits include:

Features:

-- Secure cabinet space

-- Multiple levels of power redundancy

-- Space, staff and power supply for remote locations

-- Climate-controlled environment (temperature, humidity, air filtration)

-- Fire prevention and suppression systems

-- High-level of physical security for hosted application

-- Site preparation

-- Demarcation wiring to support wire connections and coaxial cable

Benefits:

-- Direct and reliable connection to Net2000's network

-- Ability to use collocation equipment as a Hub site, reducing

telecommunications costs

-- Allows company to quickly establish presence in a new market

-- Eliminates local broadband circuit

-- Reduced service installation intervals

-- Increase performance and speed of hosted application

-- Allows company to regain control of operating and capital

expenditures (such as leases and real estate)

This offering is available at each of Net2000 central office locations, including Baltimore, MD, Richmond, VA, New York, NY, Charlestown, MA, Philadelphia, PA, Northern Virginia, and Washington DC.

About Net2000 Communications, Inc.

Founded in 1993, Net2000 is an innovative provider of broadband voice and data telecommunications services, and a fast growing emerging telecommunications company in the U.S. Net2000 provides businesses with quality local, long distance, data, interactive video and Internet services delivered over a single broadband connection and conveniently billed on a single invoice.

The company currently operates sales offices in Baltimore, MD, Boston, MA, Long Island, NY, New York, NY, Newark, NJ, Norfolk, VA, Philadelphia, PA, Providence, RI, Richmond, VA and Washington, DC. Through the recent acquisition of Vision I.T., an interactive video services company, Net2000 also operates sales offices in Los Angeles, San Jose and San Francisco, CA, and Washington state.

Visit us at www.net2000.com.

Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Net2000 cautions investors that any forward-looking statements or projections made by the company, including those that may be made in this press release, are based on management's expectations at the time they are made, but they are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Net2000's future results may be impacted by factors such as technological changes, market acceptance of the company's existing and new services, Net2000's ability to continue to expand and fund its network, general economic conditions, regulatory and legislative developments, and competitive market pressures. Net2000's future results also may be impacted by other risk factors listed in its registration statement dated March 6, 2000 and periodic reports filed with the Securities and Exchange Commission. By making these forward-looking statements, Net2000 undertakes no obligation or intention to update these statements after the date of this release.