PaeTec Communications Initiates ASP Offering

FAIRPORT, NY, March 29, 2001/-- PaeTec Corp., a holding company whose principal subsidiary is PaeTec Communications, Inc., an integrated communications provider (ICP), today announced that it has successfully implemented its Applications Service Provider (ASP) offering. PaeTec's acquisition of Pinnacle Software Corporation last year accelerated its ability to bring an ASP offering to market and this latest achievement should increase PaeTec's...

PaeTec's ASP offering is designed to provide communications management services, through the Pinnacle Communications Management System, to its customers at an affordable cost. By hosting the management system and related database on centralized servers, PaeTec customers will be able to operate, maintain and support the Pinnacle Communications Management System as if the software was operated internally from the customer's own computer equipment, but without the corresponding responsibility, administration and overhead. PaeTec's ASP customers will receive this functionality via Internet or dedicated T-1 access and all processing will occur on PaeTec's server cluster located within its secured data operations center. All ASP communications are encrypted and all ASP servers and databases are secured and fault tolerant.

"PaeTec's ASP offering generates significant operational economies of scale for customers," said Richard Lines, PaeTec's President, Pinnacle Product Solutions. "Hosting customers' applications internally allows PaeTec to leverage its existing operational systems and technical expertise, while providing consistent, cost-effective and quality service to its customers. Customers no longer need to struggle with the demands of managing and supporting a communications management system and can instead focus their efforts on realizing their strategic objectives."

The State University of New York College at Geneseo has successfully converted to the PaeTec ASP service. According to Jerry Burns, SUNY Geneseo's Director of Telecommunications Services, "The transition to PaeTec's ASP has been seamless. We're excited by the opportunities that operating under PaeTec's ASP will now provide the college. Our telecommunications department will be in a stronger position to focus its resources on its core mandate of effectively managing its telecommunications business operations, rather than concentrating energies toward managing the system environment."

Based in Fairport, NY, PaeTec Communications, Inc. is an integrated communications provider offering broadband services, including advanced voice and video, enhanced data, and communications management services to medium-sized and large businesses, colleges and universities, hospitals, governmental organizations and affinity groups. PaeTec serves customers in 26 markets, including: Albany, Baltimore, Boston, Buffalo, Chicago, Connecticut, Fort Lauderdale, Long Island, Los Angeles, Miami, New Hampshire, New Jersey, New York City, Orlando, Orange County, Philadelphia, Rhode Island, Rochester, San Diego, Northern Virginia, Syracuse, Washington DC, and Western Massachusetts.