Wavve And Capital Lease Funding Announce Plans To Acquire Up To 650,000 Square Feet Of Internet Data Centers.

Business Editors

SACRAMENTO, Calif.--(BUSINESS WIRE)--Feb. 21, 2001

Wavve Telecommunications (CDNX:WV.)

Zerocap Program Enables Wavve to Build Out 10 Additional

Data Centers Throughout the U.S. for Credit-worthy Anchor

Tenants

Wavve(TM) Telecommunications, Inc. and Capital Lease Funding (CLF) today announced plans to acquire up to 650,000 square feet of Internet Data Centers throughout the U.S.

Wavve plans to fund the estimated $250 million cost of acquiring and developing these new data centers through CLF's proprietary construction-permanent credit tenant lease financing.

Wavve's new ZeroCap program will offer users of these state-of-the-art facilities - Internet Service Providers (ISPs), telecom carriers and corporate clients - access to Wavve's cutting edge operating systems without the requirement for up-front capital investment. Utilizing this program, the partnership recently completed the development of a 92,000 square foot, $48 million Internet Data Center in Sacramento, CA.

"Our ZeroCap program represents an exciting opportunity for large domestic and international firms to expand their portfolio of data centers throughout the U.S. and to do so with no capital expenditure," said Bob Ingraham, Wavve's president and COO. "As long as these potential anchor customers are rated at least BBB or better, through the ZeroCap program, Wavve will work with them to either locate and build new data center sites, or buy and execute a sale-leaseback of their existing data centers. Either way, these anchor customers will be able to divert their data center capital expenditures back into other areas of their business."

Wavve's ZeroCap Program

Initially, Wavve plans to develop and offer the ZeroCap option in 10 new data centers throughout the continental U.S. Each data center site will be approximately 65,000 square feet.

Potential anchor tenants will be able to take advantage of the following benefits of Wavve's ZeroCap program:

     - Through a sale-leaseback option, existing data center
       owners can free up capital for use in other areas of their
       business;

     - Anchor tenants can expand their data center footprint and
       upgrade their systems without additional capital
       expenditures;

     - Anchor tenants can take advantage of Wavve's option to
       private label the facilities;

     - Through Wavve's partnerships with DPR Construction and
       Turner Construction, anchor tenants benefit from superior
       data center design and construction; and

     - In conjunction with third party energy and facilities
       management providers, Wavve's Real Estate Division offers
       tenants state-of-the-art facilities management services.

      Wavve's recently developed Sacramento II data center facility is a
prototype of the new ZeroCap program and demonstrates the significant
advantages available to anchor tenants. The anchor tenant in this case
utilized the program to private-label the data center under their own
brand name and will occupy 30,000 square feet for 10 years.
      The ZeroCap program requirements for potential anchors include the
following:

     - Occupancy of a minimum of 20,000 square feet allocated
       throughout the available sites;

     - Minimum 10-year anchor tenancy term; and

     - Standard & Poor's corporate credit rating of BBB or
       higher.

Wavve's aggressive data center expansion plan follows the recent announcement of its funding partnership with CLF and the formation of three separate business units.

Ingraham added, "Not only will potential anchor tenants have the ability to private-label Class-A data center infrastructure and locations, but they will also have the ability to utilize and leverage Wavve's technologically superior suite of managed services and operational support systems."

Wavve's Triad of Services

Through the formation of three separate business units, Wavve positioned itself to provide customers with the most robust single-source of products and services, including data center facilities, managed services and software solutions.

Real Estate

Wavve's Real Estate division has proven experience in designing and building state-of-the-art Internet Data Centers to facilitate a comprehensive array of managed IT and data services including colocation; scalable, high-speed redundant diverse Fiber Optic Internet access; network, systems, and security monitoring and management; call center and technical support services.

Wavve's Class-A data center facilities specifications include:

     - 24x365 comprehensive physical and virtual security;

     - N+1 Fault tolerant electrical power;

     - Seismic upgrades;

     - Biometric security (palm sensors);

     - 100% redundant parallel UPS systems;

     - 120 V and 208 V alternating current dedicated circuits;

     - Advanced infrared heat/fire/smoke detection;

     - 99.999% server uptime availability;

     - Data Grade HVAC;

     - VESDA smoke detection; and

     - Open rack, enclosed cabinet and custom configurations.

Software Solutions

Wavve's patent-pending next-generation Operational Support System (OSS) combines industry-leading Internet infrastructure with robust, packaged e-business applications that will offer customers unprecedented levels of automation and integration to improve and refine business processes.

Wavve's revolutionary OSS is the only OSS that addresses key areas of complex network and e-service delivery and management by capturing the entire solution life cycle within an extensible, globally scalable, Internet architecture that is further engineered to support rapidly changing business and technical requirements.

Managed Services

Development of Wavve's managed services division is part of Wavve's evolution into a single-source IT and applications management provider. Wavve's managed services solutions provide customers with best-of-breed technologies and practices to develop and deliver end-to-end service assurance.

Wavve's managed services solutions are designed to provide customers with flexible solutions that offer reliability, redundancy, security and scalability, which in turn provide customers with increased uptime, improved performance and reduced capital expenditures.

Wavve is in the process of forming alliances and partnerships with world-class hardware, software and systems technology vendors and providers.

About Wavve Telecommunications, Inc.

Wavve Telecommunications, Inc. is a leading provider of colocation, network connectivity, Internet and managed services. Wavve also offers value-added end-to-end application services including web and content hosting, virtual ISP services, e-commerce and e-business applications to enterprise, industrial, and ISP customers with mission-critical businesses and operations. By outsourcing web-based infrastructure and application systems to Wavve, their customers can maintain strategic focus on their core business while leveraging the power of the Internet. For more information about Wavve and its services, please visit us at www.wavve.com or call 916.340.6400.

About Capital Lease Funding, L.P.

Capital Lease Funding, L.P. is the leading capital markets based lender specializing in financing properties net leased to credit tenants rated BBB or better. CLF has financed more than $2 billion of credit tenant lease loans involving more than 60 corporate tenants since 1997. CLF's unique financing programs include one time close construction/permanent financing, balloon loans, forward commitments and rate locks, and credit tenant anchored shopping center and office building financing. For more information about Capital Lease Funding and its financing programs, please visit their website at www.caplease.com or contact them at 212.217.6335.

This release contains forward-looking statements, including among others, descriptions of management's plans and objectives and statements related to future operations, that involve risks and uncertainties. These statements may involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company or industry results to be materially different from any future results, performance, or achievement expressed or implied by such forward-looking statements. Factors that could affect these forward-looking statements include, among others, the following: operational challenges of developing, deploying and delivering Wavve's service; general economic and business conditions, demographic changes, regulation, major technology changes, timing of product introductions, competition, and the ability of the Company to attract and retain key employees. Wavve assumes no obligation to update forward-looking statements contained in this press release. Readers are encouraged to refer to Wavve's filings with the Canadian Venture Exchange and Wavve's 1999 Annual Report for more information on business and risk factors that may affect operating and financial results and forward-looking statements.