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PAETEC Holding Corp. today announced third quarter 2009 financial and operating results. "PAETEC demonstrated strong operating and financial results in third quarter 2009 in a challenging environment," said Arunas A. Chesonis, chairman and CEO.

PAETEC Holding Corp. Announces Third Quarter 2009 Results

• Third quarter revenue of $395.7 million, a $500 thousand sequential increase over second quarter 2009 revenue
• Third quarter adjusted EBITDA* of $64.2 million, an increase of 11.2% over third quarter 2008 and $700 thousand sequentially over second quarter 2009
• 27th consecutive quarter of positive free cash flow,*�� which increased by $200 thousand from second quarter 2009 to $36.5 million
• $10.6 million reduction in loans outstanding under our credit facilities during third quarter 2009

FAIRPORT, N.Y. (November 5, 2009) - PAETEC Holding Corp. (NASDAQ GS: PAET) today announced third quarter 2009 financial and operating results.�� "PAETEC demonstrated strong operating and financial results in third quarter 2009 in a challenging environment," said Arunas A. Chesonis, chairman and CEO.�� "Revenue, adjusted EBITDA, and free cash flow increased on a sequential basis for the third quarter 2009.�� We reduced debt under our credit facilities by $10.6 million and our cash position remains strong at $141.5 million at the end of third quarter 2009.�� We are making smart moves by using this slowdown in the economy to analyze processes to drive further cost savings and to strengthen our sales efforts, thus positioning PAETEC to be more efficient when growth accelerates."�� Financial results for third quarter 2009 included the following:

• Third quarter revenue of $395.7 million, which represented a 2.6% decrease from third quarter 2008 revenue of $406.1 million;
• Third quarter adjusted EBITDA of $64.2 million, which represented an 11.2% increase over third quarter 2008 adjusted EBITDA of $57.8 million;
• Third quarter net loss of $6.5 million compared to third quarter 2008 net loss of $355.8 million;
• Third quarter net cash provided by operating activities of $40.8 million compared to third quarter 2008 net cash provided by operating activities of $24.8 million;
• A cash balance of $141.5 million at September 30, 2009; and
• Voluntary repayment of $10.0 million of loans outstanding under PAETEC's revolving credit facility.

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About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing business communications for medium-sized and large businesses, enterprise organizations, and institutions across the United States.�� We offer a comprehensive suite of IP, voice, data and Internet services, as well as enterprise communications management software, network security solutions, CPE, and managed services.�� For more information, visit www.paetec.com.