Eschelon Telecom, Inc. Adds VoIP Product to its Network Product Line

  
    
  
  
    
      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 the additional Voice Over 
      Internet Protocol (VoIP) product capabilities to its network. The new IP 
      applications will leverage the existing network infrastructure and will 
      be available in addition to existing TDM products.
    
    
      Dan Wigger, Eschelon’s Vice President of 
      Engineering, who led the product development effort said, “Eschelon 
      is not first to market with this kind of product offering and that was a 
      strategic choice. As with any new technology, the hype of VoIP promised 
      more than the initial products could deliver. By waiting, we are now 
      able to deliver a rock-solid product that has been thoroughly tested and 
      will meet our aggressive network performance standards.”
    
    
      The VoIP technology will add a “variable 
      bandwidth” capability to Eschelon’s 
      successful Precision FlexPak product line. This means customers will be 
      able to use the entire 1.5Mb of available bandwidth on their T-1 circuit 
      for dedicated Internet traffic when no voice calls are in progress. “We 
      are offering this capability as an option to FlexPak rather than making 
      VoIP our only delivery method as some carriers have decided to do,” 
      commented Jon Secrest, Eschelon’s Vice 
      President of Marketing. “Some carriers 
      believe that a VoIP-only strategy will eventually lower their network 
      costs but we don’t see it that way. This is a 
      great technology, but it is not the best solution for every customer. By 
      offering both VoIP and TDM-based solutions, we’ll 
      be able to help the customer choose the best solution for their business 
      communication needs – that is key to our 
      product strategy.”
    
    
      “I’m extremely 
      proud of the team of Eschelon Associates who brought this product to 
      market,” added Richard A. Smith, Eschelon’s 
      Chief Executive Officer. “At the beginning of 
      this year we announced an aggressive timeline for the introduction of 
      this product and we beat it! This is a remarkable accomplishment 
      considering we were simultaneously executing multiple integration 
      projects with acquired companies and significantly expanding our network 
      reach into three new markets during the first half of the year. I love 
      the way we have leveraged our high quality TDM network and added a VoIP 
      platform to it – certainly a capital 
      efficient approach.”
    
    
      The VoIP product capability will be initially launched in Minneapolis 
      with subsequent launches scheduled for Denver and Phoenix by the end of 
      the third quarter.
    
    
      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 53 markets in the western United States. Headquartered in 
      Minneapolis, Minnesota, the company currently employs approximately 
      1,470 telecommunications/Internet professionals, serves over 65,000 
      business customers and has approximately 655,000 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 www.eschelon.com
    
    
      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. In particular, statements 
      regarding the consummation of the merger are subject to risks that the 
      conditions to the transaction will not be satisfied. In addition, our 
      results of operations, financial condition and cash flows also may be 
      adversely impacted by the recent announcement of the proposed 
      transaction, which may impact our ability to attract and retain 
      customers, management and employees. We have incurred and will continue 
      to incur significant advisory fees and other expenses relating to the 
      transaction. 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.