Exhibit 99
Mpower Communications Completes Acquisition
of Primary Network
Leverages Primary's Leadership Team; Significantly Advances Southwest Region
Network Expansion
ROCHESTER, NY - June 26, 2000 - Mpower Communications (Nasdaq:MPWR), a leading
provider of broadband data, Internet and telephony services to business
customers, today completed its acquisition of Primary Network Holdings, one of
the largest data-centric communication providers in the Midwest.
As part of the definitive agreement announced on April 17, Mpower issued 1.4
million shares of common stock to Primary Network shareholders and assumed
approximately $72 million of net debt, approximately $56 million of which will
be exchanged for approximately $62 million of Mpower's 13% Senior Notes due
2010. These Notes are subject to a 6-month lock-up unless traded at par. Mpower
is accounting for this transaction as a purchase.
"Over the past sixty days our concerted integration efforts have produced
impressive results both organizationally and operationally," said Mpower
Communications President and Chief Executive Officer Rolla P. Huff. "We knew
from the beginning that this transaction would be value-added and accretive on
all measures. Since the day we announced the agreement, we've seen much of that
come to fruition and are moving quickly to capitalize on the great people,
systems and products Primary brings us."
Rich Phillips, former Chief Operating Officer of Primary Network, has been named
Vice President Network Expansion for Mpower and will lead the combined company's
national network expansion. Two other Primary executives will fill key roles in
Mpower's Southwest Region, which encompasses Texas, Missouri, Oklahoma, Kansas
and Arkansas. Tom Hesterman, former President Operational Support and Services
of Primary Network, has been named Vice President Operations for the Southwest
Region, and John Alden, Former Senior Vice President of Sales and Marketing for
Primary, has been named Vice President of Sales for the Southwest Region.
Primary Network will also have 100 central office collocation facilities
operational by the end of this month. Mpower is in the process of installing a
switch in the Southwest to bring Primary's business customers onto Mpower's
network and to deliver its industry-leading Voice over Symmetrical Digital
Subscriber Line (VoSDSL) service to business customers in Primary's markets.
These markets currently include St. Louis and Kansas City, but will expand to
reach into Topeka, Wichita, Springfield, Little Rock, Tulsa and Oklahoma City in
the coming months.
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"In conjunction with our Texas markets coming on line next month, this
acquisition significantly expands our Southwest footprint and positions us to be
a fierce competitor in this region," added Huff. "Businesses in these markets
will soon have access to our full range of data, Internet and voice services all
delivered over a single line using DSL technology. In addition, we have an
excellent shared server hosting business at Primary, which we plan to leverage
to bring a more robust and national Web hosting offering to all of our markets
later this year."
About Mpower Communications Corp.
Mpower Communications Corp. (Nasdaq: MPWR) is a facilities-based broadband
communications provider offering a full range of data, telephony, Internet
access and Web hosting services for small and medium-size business customers.
The company is quickly expanding its industry-leading Voice over Symmetrical
Digital Subscriber Line (VoSDSL) footprint to serve 37 markets in 12 states by
the end of the third quarter of this year. Headquartered in Rochester, NY, the
company employs more than 2,000 people nationwide. Mpower ranked 12th in the
Bloomberg Tech 100 listing of the fastest growing technology companies in the
United States based on sales growth for the 1999 fiscal year. Further
information about the company can be found at www.mpowercom.com.
Forward-Looking Statements
Certain statements contained in this press release that state Mpower
Communications and/or management's intentions, hopes, beliefs, expectations or
predictions of the future are forward-looking statements. Management wishes to
caution the reader these forward-looking statements are not historical facts and
are only estimates or predictions. Actual results may differ materially as a
result of risks and uncertainties including, but not limited to, projections of
future sales, returns on invested assets, regulatory approval processes, market
conditions and other risks detailed from time to time in Mpower's Securities and
Exchange Commission filings.
Investor Relations Inquiries: Media Inquiries:
David S. Clark Michele D. Sadwick
Senior Vice President Vice President
716.218.6559 716.218.6542
[email protected] [email protected]
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