Stockholders Vote to Approve Acquisition by Integra Telecom

  
    
  
  
    
      Stockholders of Eschelon Telecom, Inc., (NASDAQ:ESCH) a leading provider 
      of integrated communications services to small and medium sized 
      businesses in the western United States, today overwhelmingly approved 
      the company's proposed acquisition by Integra Telecom Holdings, Inc. The 
      vote was announced at a special meeting of stockholders in Minneapolis, 
      Minnesota.
    
    
      Of the votes submitted, approximately 99.98 percent were cast in favor 
      of the transaction. The total significantly exceeded the required 
      majority of all shares outstanding.
    
    
      The transaction is expected to close in the third quarter of 2007 after 
      final approval of state regulatory agencies.
    
    
      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 52 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.
    
    
      About Integra Telecom, Inc.
    
    
      Integra Telecom, Inc. provides voice, data and Internet communications 
      to thousands of business and carrier customers in eight Western states, 
      including: Arizona, California, Idaho, Minnesota, North Dakota, Oregon, 
      Utah and Washington. The company owns and operates a best-in-class 
      fiber-optic network comprised of eight metropolitan access networks, a 
      nationally acclaimed tier one Internet and data network and a 4,700-mile 
      high-speed long haul network. The company enjoys some of the highest 
      customer loyalty and customer satisfaction ratings in the 
      telecommunications industry. Primary equity investors in the company 
      include Bank of America Capital Investors, Boston Ventures and Nautic 
      Equity Partners. Integra Telecom and Electric Lightwave are registered 
      trademarks of Integra Telecom Inc. For more information, visit www.integratelecom.com.
    
    
      Additional Information and Where to Find It
    
    
      A definitive proxy statement of the Company has been filed with the 
      Securities and Exchange Commission (the “SEC”). 
      WE URGE INVESTORS TO READ THE PROXY STATEMENT CAREFULLY BECAUSE IT 
      CONTAINS IMPORTANT INFORMATION ABOUT THE COMPANY AND THE PROPOSED 
      TRANSACTION.
    
    
      Investors and security holders will be able to obtain free copies of the 
      Proxy Statement and other documents filed with the SEC by the Company 
      through the web site maintained by the SEC at www.sec.gov. 
      Free copies of the Proxy Statement may also be obtained from the Company 
      and free copies of the Company’s other filings 
      with the SEC may also be obtained from the Company. Free copies of the 
      Company filings may be obtained by sending a written request to Investor 
      Relations, Eschelon Telecom, Inc. 730 Second Ave. Minneapolis, MN 55402. 
      In addition, investors and security holders may access copies of the 
      documents filed with the SEC by the Company on its website at www.eschelon.com, 
      under the links “Investor Relations—SEC 
      Filings” when they become available.
    
    
      Eschelon and its officers and directors may be deemed to be participants 
      in the solicitation of proxies with respect to the proposed transaction. 
      Information regarding such individuals is included in Eschelon’s 
      proxy statements and Annual Reports on Form 10-K previously filed with 
      the Securities and Exchange Commission and is included in the proxy 
      statement relating to he proposed transaction.
    
    
      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.