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Eschelon Telecom, Inc. Achieves Lowest Customer Churn in Company's History for Third Quarter 2006.

MINNEAPOLIS -- Eschelon Telecom, Inc. (NASDAQ:ESCH): Eschelon Telecom, Inc., a provider of integrated communications services to small and medium sized businesses in the western United States, today announced that for the third quarter of 2006 it has achieved its lowest customer line churn in its ten-year history. Customer line churn, which is a measurement of the percentage of lines that leave a provider's service each month, hit an all-time low of 1.15%. Eschelon's previous record low churn rate was achieved in the third quarter of 2005 at 1.20%.

"We have established a culture in which every Eschelon associate works diligently to continuously improve customer satisfaction," stated Richard Smith, Eschelon's President and CEO. "We are especially pleased to see customer satisfaction improve at the same time we are working to integrate our recently acquired companies. In addition to our focus on customer satisfaction, other drivers of this low level of churn include: 1) An increasing percentage of lines in our base that are T-Systems that carry lower levels of churn; 2) Acquisition of Oregon Telecom that has a <1.0% customer line churn rate; 3) An increasing penetration of Business Telephone Systems (BTS) sales in our base of customers - in the case where a customer takes Network Services products and BTS, customer line churn rates of <.8% are achieved; and 4) A decrease in the churn related to competitive reasons and financial reasons (disconnects for non-pay and bankruptcies). For comparison purposes, Eschelon measures customer line churn in a very conservative way by counting all lines reduced by customers for any/all reasons - if we measured customer churn or revenue churn as some of our peers do - our 1.15% metric would be reduced to approximately .80% - a very low, good level of performance."

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 25 markets in the western United States. Headquartered in Minneapolis, Minnesota, the company currently employs approximately 1,300 telecommunications/Internet professionals, serves over 60,000 business customers and has in excess of 500,000 access lines in service throughout its markets in Minnesota, Arizona, Utah, Washington, Oregon, Colorado, Nevada, Montana and California. For more information, please visit our web site at

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.
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Publication:Business Wire
Date:Oct 5, 2006
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