Standard & Poor's Assigns Ratings to Eschelon Telecom, Inc.; Rating Outlook Remains Stable.

MINNEAPOLIS -- Eschelon Telecom, Inc., (NASDAQ:ESCH) a leading provider of integrated communications services to small and medium sized businesses in the western United States, today announced that Standard & Poor's Ratings Services has assigned a "B-" rating to the company's $46 million 8 3/8% senior second secured notes due 2010. The notes are a tack-on to the company's original senior second secured notes offering. A portion of the proceeds will be used to fund the acquisition of Oregon Telecom, Inc. (OTI). The outlook is stable.

Standard & Poor's has indicated that factors associated with the rating include "the company's modest leverage, low churn, and its flexibility with respect to capital spending."

"We thank Standard & Poor's for the rating of our senior second secured notes which will be used to fund our acquisition of OTI," stated Richard A. Smith, Eschelon's President and Chief Executive Officer. "We are very selective in our acquisitions to ensure that each transaction will drive the company's EBTIDA, cash flow and revenue growth. We are pleased that Standard & Poor's has recognized this by assigning this rating."

About Eschelon Telecom, Inc.

Eschelon Telecom, Inc. is a facilities-based competitive communications services provider of voice and data services and business telephone systems in 19 markets in the western United States. Headquartered in Minneapolis, Minnesota, the company offers businesses a comprehensive line of telecommunications and Internet products. Eschelon currently employs over 1,100 telecommunications/Internet professionals, serves over 50,000 business customers and has in excess of 415,000 access lines in service throughout its markets in Minnesota, Arizona, Utah, Washington, Oregon, Colorado, Nevada and California.

Forward Looking Statements

This announcement 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. The forward-looking statements are based on Eschelon Telecom's current intent, belief and expectations. These statements are not guarantees of future performance and are subject to certain risks and uncertainties that are difficult to predict. Actual results may differ materially from these forward-looking statements because of the company's history of losses, ability to maintain relationships with RBOCs, substantial indebtedness, intense competition, dependence on key management, changes in government regulations, and other risks that may be described in the company's filings with the Securities and Exchange Commission. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today's date. Eschelon Telecom undertakes no obligation to update or revise the information contained in this announcement, whether as a result of new information, future events or circumstances or otherwise.