REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
The Board of Directors and Stockholders of Concentric Network
Corporation
We have audited the accompanying consolidated balance sheets of
Concentric Network Corporation as of December 31, 1998 and
1999, and the related consolidated statements of operations,
common stock subject to rescission and stockholders’ equity
(deficit), and cash flows for each of the three years in the
period ended December 31, 1999. Our audits also included the
financial statement schedule included in Item 14. These
financial statements and schedule are the responsibility of the
Company’s management. Our responsibility is to express an
opinion on these financial statements and schedule based on our
audits.
We conducted our audits in accordance with auditing standards
generally accepted in the United States. Those standards require
that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the consolidated financial statements referred to
above present fairly, in all material respects, the consolidated
financial position of Concentric Network Corporation at
December 31, 1998 and 1999, and the consolidated results of
its operations and its cash flows for each of the three years in
the period ended December 31, 1999, in conformity with
accounting principles generally accepted in the United States.
Also in our opinion, the related financial statement schedule,
when considered in relation to the basic consolidated financial
statements taken as a whole, presents fairly in all material
respects the financial information set forth therein.
San Jose, California
January 21, 2000, except for Note 13,
as to which the date is March 20, 2000
