US LEC Grows Customer Base, Maintains Industry-Leading Retention Rate

Company increases business-class customers to more than 28,000 


CHARLOTTE, N.C., Aug. 7  /PRNewswire-FirstCall/ -- US LEC Corp. (NASDAQ:CLEC), a full-service provider of IP, data and voice solutions to businesses and enterprise organizations throughout the Eastern United States, today announced its business customer base grew to 28,049 as of July 31, while continuing to keep its industry-leading retention rate above 99 percent.

"Customers find our solutions-focused products, scalable, secure network, and dedicated customer account teams critical factors in choosing and staying with US LEC," said US LEC CEO Aaron Cowell. "We're proud that our customer turnover, or churn, continues below one percent and our acquisition rate of high-value large- and mid-sized businesses continues to grow at a strong pace."

US LEC's customer base has grown over 13 percent since July 2005 and over 200 percent since July 2002. Over the same four-year period, US LEC increased its penetration of data products ten-fold from almost 2,000 to over 21,000 customers. Later this year, US LEC will complete the rollout of its MPLS VPN product, offering advanced data networking across its footprint.

"US LEC continues to address our customers' needs with the launch of advanced IP-based products and services that improve productivity and efficiency," Cowell said. "Along with all other US LEC business-class products and services, our IP solutions are supported by our Lifetime 100% Customer Satisfaction Guarantee."

Last year marked an important point for US LEC's product evolution as the company introduced more new IP-based products and services to its markets than any year in the company's history. In 2005, the company launched its advanced IP-based data-networking product, MPLS VPN; Data Backup and Recovery; voice messaging and mobility features for its VoIP-based Dynamic T(SM); and Ethernet Local Loop transport service.

About US LEC

Based in Charlotte, N.C., US LEC is a full service provider of IP, data and voice solutions to medium and large businesses and enterprise organizations throughout 16 Eastern states and the District of Columbia. US LEC offers advanced, IP-based, data and voice services such as MPLS VPN and Ethernet, as well as comprehensive Dynamic T(SM) VoIP-enabled services and features. The company also offers local and long distance services and data services such as frame relay, Multi-Link Frame Relay and ATM. US LEC provides a broad array of complementary services, including conferencing, data backup and recovery, data center services and Web hosting, as well as managed firewall and router services for advanced data networking. US LEC also offers selected voice services in 27 additional states and provides enhanced data services, selected Internet services and MegaPOP(R) (local dial-up Internet access for ISPs) nationwide. For more information about US LEC, visit http://www.uslec.com/.

Except for the historical information contained herein, this report contains forward-looking statements, subject to uncertainties and risks, including the demand for US LEC's services, the ability of the Company to introduce additional products, the ability of the Company to successfully attract and retain personnel, competition in existing and potential additional markets, uncertainties regarding its dealings with ILECs and other telecommunications carriers and facilities providers, regulatory uncertainties, the possibility of adverse decisions related to reciprocal compensation and access charges owing to the Company, as well as the Company's ability to begin operations in additional markets. These and other applicable risks are summarized in the "Caution Regarding Forward-Looking Statements" and "Risk Factors" sections and elsewhere in the Company's Annual Report on Form 10-K for the period ended December 31, 2005, and in subsequent reports, which are on file with the Securities and Exchange Commission.

US LEC is a registered service mark of US LEC Corp. US LEC and Design (R) is a registered service mark and trademark of US LEC Corp.   StarNet(TM) and MegaPOP(R) are service marks of US LEC Corp.

Media Contact, Marisa Puthoff, Edelman Public Relations, 404-262-3000, 

Corporate Contact, Brian Crenshaw, APR, US LEC, 704-319-1942, 

Investor Contact, James Stawski, US LEC, 704-319-1189,  

DATASOURCE: US LEC Corp.



CONTACT:  Media, Marisa Puthoff of Edelman Public Relations,

[phone], or ; or Corporate, Brian Crenshaw,

APR, [phone], or , or Investors, James Stawski,

[phone], or , both of US LEC Corp.



Web site:  http://www.uslec.com/ 

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