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Dec 20, 2006 - PAETEC Interconnects With Stealth's Voice Peering Fabric
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FAIRPORT, NY - PAETEC Communications today announced that it has interconnected with Stealth Communications' Voice Peering Fabric™ (VPF), the world's largest peering network for voice communications and telephony services.
Launched in 2003, the VPF is a large and secure private distributed Ethernet network that functions as an exchange, or meet-point, for service providers and enterprises to either exchange VoIP traffic in a secure, quality-of-service environment, or to distribute and access various applications.
Predominantly serving businesses, higher educational institutions, and service providers, the VPF eliminates the need to provision circuits every time a member makes a new connection to another member and, as the VPF expands to a wider footprint, those who subscribe to the network automatically reach into wider geographies through a single interconnection.
"We welcome PAETEC to the VPF Community. With PAETEC's unique coverage capabilities, VPF members now have additional reach and coverage to remain competitive in this rapidly emerging marketplace," said Shrihari Pandit, president and CEO of Stealth Communications. "The VPF continues to play a key role in reducing operating costs for service providers by moving calls entirely into the IP domain."
By joining the VPF, PAETEC is able to rapidly deliver its IP DID Origination services to VoIP providers located anywhere within the reach of the VPF (currently to domestic U.S., Canada, and the United Kingdom). In addition, PAETEC can offer IP Termination services throughout the domestic U.S., and IP Transit services to any VPF subscriber.
"VoIP providers and end users need the ability to exchange traffic via a quality interconnection infrastructure," said EJ Butler, chief operating officer for PAETEC. "Through the VPF, PAETEC can quickly and easily offer VPF members our quality products and services throughout an extensive and rapidly expanding footprint."
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over its Private-IP MPLS network. With more than 1,100,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
About Stealth Communications
Stealth Communications celebrates more then a decade in the telecom industry with its successful lines of services based on Ethernet and IP technology. With a positive attitude towards improving telecommunications and endless innovation benefiting communities, Stealth has earned a great reputation in the industry by providing quality services and customer satisfaction. Stealth works closely with its customers and partners who are in the telecom, financial, realty, educational and government sector. For more information on Stealth and the VPF, visit" www.stealth.net and www.thevpf.com.
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Dec 05, 2006 - PAETEC Wins Selling Power Sales Excellence Award
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LAS VEGAS - Selling Power magazine announced that PAETEC Communications, Inc., was presented with a Stevie™ Award for being named the Telecommunications Sales Organization of the Year. PAETEC received the award at the 2006 Selling Power Sales Excellence Awards celebration, held last night at the Westin Casuarina Hotel, Spa & Casino in Las Vegas. More than 230 nominated sales executives from around the world attended the event. PAETEC was also a finalist in the Sales Training Program of the Year category.
"We built the organization around our sales force, so this award will be highly valued throughout the company," said PAETEC President of Alternate Channels Chris Bantoft, who accepted the award on behalf of the company. "In a sense, we believe that every role in the company is a sales role."
"Our company has achieved tremendous success in our eight years of existence by consistently exceeding our sales targets, and the quality of our sales force is a primary reason," said PAETEC Executive Vice President of Sales Mario DeRiggi. "We empower our sales people to create unique solutions for our customers, and we provide the training, products, and back-office support for them to do so."
The awards were jointly presented by Selling Power magazine, the leading sales management publication with 145,000 subscribers in 67 countries, and The Stevie Awards, which have been hailed as "the business world's own Oscars" by the New York Post (April 27, 2005).
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over its Private-IP MPLS network. With more than 1,100,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
About The Stevie Awards
Hailed as "the business world's own Oscars" by the New York Post (April 27, 2005), Stevie Awards are conferred in four programs: The American Business Awards, The International Business Awards, The Stevie Awards for Women in Business, and the Selling Power Sales Excellence Awards. Honoring companies of all types and sizes and the people behind them, the Stevies recognize outstanding performances in the workplace worldwide. Learn more about The Stevie Awards at www.stevieawards.com.
About Selling Power
Selling Power is the world's leading sales management magazine with more than 145,000 subscribers in 67 countries. Learn more at www.sellingpower.com.
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Dec 04, 2006 - PAETEC Launches Online Account Management Tool
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FAIRPORT, NY - PAETEC Communications, Inc., today announced the debut of PAETEC Online, the company's completely redesigned Internet-based account management tool for customers. This value-added service is available to all new and existing customers.
PAETEC Online features a new look and improved navigation, replacing the functionality found in PAETEC's WebFront customer interface. PAETEC Online allows customers to perform such account maintenance as paying bills online, activating new services, obtaining network utilization reports, and much more. Additionally, technical improvements to the application will allow the company to more quickly introduce new features to customers.
"PAETEC Online allows an immediate and secure option for our customers to interact with PAETEC," said Jack Baron, Chief Marketing Officer for PAETEC. "We researched numerous customer interfaces across multiple industries while also asking our customers what features they wanted. We then designed PAETEC Online as a flexible way for the customer to self-service their account."
PAETEC Online can be accessed at www.paeteconline.com.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over its Private-IP MPLS network. With more than 1,100,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Nov 27, 2006 - Simon School Receives Major Gift From Arunas and Pamela Chesonis
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ROCHESTER, NY - Arunas and Pamela Chesonis have pledged $1.5 million to the Simon Graduate School of Business at the University of Rochester over the next three years to establish Chesonis Entrepreneurial Scholarships for full-time M.B.A. students interested in Entrepreneurship.
The scholarships are an effort to leverage the Simon School's top-ranked business education into growing the region's next generation of entrepreneurs. Every year up to 10 scholarships will be awarded based on candidates' need, merit and entrepreneurial spirit.
"We are most appreciative of Arunas and Pamela Chesonis's extraordinary vision and generosity," says University President Joel Seligman. "Their gift represents a major commitment both to the Simon Graduate School of Business and to the economic vitality of the greater Rochester region."
Arunas Chesonis, a 1991 graduate of the Simon School, is founder, chairman and C.E.O. of PAETEC Communications, Inc., one of the nation's fastest growing telecommunications companies, headquartered in Fairport, N.Y.
"The Simon School was instrumental in giving me the skills and confidence to fulfill my entrepreneurial goals," Chesonis explains. "My wife and I are proud to deepen our relationship with the program and hope that our support allows others the means to pursue their dreams." Chesonis will be actively involved in mentoring the scholarship recipients.
"We are deeply grateful to Arunas and Pamela Chesonis for this generous gift," says Simon School Dean Mark Zupan. "Each year, if we can graduate several students just like Arunas, that will be the most fitting tribute to their generosity and a significant contribution to the long-run vitality of our region."
Monroe County Executive Maggie Brooks views the scholarships as a positive boost for the entire Rochester area. "The growth and vitality of our future economy is directly linked to our ability to support entrepreneurs and start-up companies, while also cultivating the next generation of entrepreneurs in our region," says Brooks. "Monroe County is proud to be home to top-ranked educational institutions like the Simon School, and entrepreneurial success stories like PAETEC Communications. I applaud Dean Zupan and Chairman Chesonis on this outstanding partnership."
Chesonis has long supported the Simon School, in particular through his mentoring of Simon student interns and brand management project work at PAETEC.
The Simon School prides itself as the place Where Thinkers Become Leaders™ and is currently ranked among the leading graduate business schools in the world in rankings published by the popular press, including BusinessWeek, U.S. News & World Report, The Wall Street Journal, Financial Times and Forbes. For example, in the most recent BusinessWeek poll, the Simon School was ranked among the top 30 business schools in the United States. The Financial Times recently rated the School 4th in the world for finance and 6th in the world for both accounting and managerial economics. More information about the Simon School is available on the World Wide Web at http://www.simon.rochester.edu.
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Nov 22, 2006 - PAETEC Receives Positive Rating in TEM Report by Leading Analyst Firm
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FAIRPORT, NY - FAIRPORT, NY - PAETEC Communications, Inc., announced that its PINNACLE Communications Management Suite rated "Positive" among national TEM vendors in Gartner's October 2006 "MarketScope for Telecom Expense Management, 2H06" report. Gartner has based its ratings on discussions with each vendor, their customers, and companies that have engaged the vendors in the sales cycle - all of which was weighted against evaluation criteria, including business model, customer experience, innovation, product/service, and overall viability.
"PAETEC's world-class, carrier-grade data center and redundant nationwide network has the capacity to sustain rapid performance growth, increased hosted customers, and continued quality services," said Burke. "These world-class facilities provide our PINNACLE customers with a secure, scalable, and flexible hosted service environment."
The complete MarketScope for Telecom Expense Management, 2H06, authored by Eric Goodness and Phillip Redman at Gartner can be viewed at www.gartner.com.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over its Private-IP MPLS network. With more than 1,100,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
About PINNACLE
The PINNACLE Communications Management Suite is a fully integrated software application designed for large enterprise customers to enable effective communications lifecycle management. PINNACLE streamlines your enterprise operations, ensuring visibility, accountability, productivity, and compatibility. Gain instant access to real-time cost and operational details, improve cost accountability and billing accuracy, achieve operational efficiency, and implement compatible systems - all while realizing significant hard-dollar savings. PINNACLE is a single, comprehensive solution that consolidates the business service management and delivery of all of your technology-related services.
PAETEC acquired Pinnacle Software, Corp., in April 2000, and has supported the development and success of its premier software product suite for the past six years.
About MarketScope
The MarketScope is copyrighted October 27, 2006, by Gartner, Inc. and is reused with permission. The MarketScope is an evaluation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the MarketScope, and does not advise technology users to select only those vendors with the highest rating. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
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Nov 17, 2006 - PAETEC Receives Corporate Philanthropy Award
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FAIRPORT, NY - PAETEC Communications, Inc., announced that it has received the Outstanding Corporation award as presented by the Association of Fundraising Professionals, Genesee Valley Chapter. PAETEC was honored for its financial and volunteer efforts with Sojourner House, along with its support for numerous other Rochester-area not-for-profit organizations.
"We're honored to receive this award," said PAETEC Chairman and CEO Arunas A. Chesonis. "The Outstanding Corporation award is tremendous validation that PAETEC is having a measurable impact in the communities in which we do business."
Ms. DiLuglio is on the Board of Directors for Gilda's Club Rochester, and was named as that organization's 2006 outstanding volunteer. She also is manager of the Webster Soccer Association's girls travel soccer team, and volunteers with Junior Achievement. She and her husband, Rick, have one daughter.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over its Private-IP MPLS network. With more than 1,100,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Nov 09, 2006 - PAETEC Announces Two 40 Under 40 Recipients
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FAIRPORT, NY - PAETEC Communications, Inc., announced that Senior Corporate Counsel Eric Black and Director of Accounting Sandra DiLuglio each received the Rochester Business Journal's prestigious '40 Under 40' award. This honor is bestowed each year upon exceptional business leaders under the age of 40 in the greater Rochester area.
Mr. Black is on the Board of Directors for the Center for Youth Services and is a junior varsity football and basketball coach in the Rush-Henrietta School District. He also volunteers for the Special Olympics, and shares his life experiences through classroom visits with students throughout Monroe County. Mr. Black was named as one of Rochester's Emerging African-American Leaders in 2006.
Mr. Black is the lead retail and wholesale sales contract negotiator for the Legal department at PAETEC, including bid responses to Requests for Proposals. In addition, he is the primary legal contact for government contracting issues and customer disputes. Mr. Black has experience in both mergers and acquisitions, and in representing higher education and not-for-profit organizations through prior positions with Nixon Peabody LLP, and Global Crossing. He is a member of the Bar Association in both New York and Virginia, and holds a bachelor's degree in Economics from the Univeristy of Rochester, and a Juris Doctor from the University of Virginia School of Law. He and his wife, Jennifer, have two sons.
Ms. DiLuglio directs the internal financial reporting for PAETEC, which consists of directing, organizing, and coordinating the financial closing, internal reporting of the financial books, and cash disbursements on a timely and accurate basis. She coordinates the communication of financial results to top management, back office, and sales personnel. Ms. DiLuglio also acts as the liaison between PAETEC and the company's external audit firm, and performs accounting due diligence for potential merger and acquistion activity. She holds a B.S. in Management and an MBA, both from St. John Fisher College.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over its Private-IP MPLS network. With more than 1,100,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Nov 06, 2006 - PAETEC Signs Service Agreement with Tampa Bay Devil Rays
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TAMPA, FLA - PAETEC Communications, Inc., and Major League Baseball's Tampa Bay Devil Rays have announced a multi-year agreement that includes sponsorship opportunities for PAETEC and telecommunications solutions for the Devil Rays.
"We're proud to include the Tampa Bay Devil Rays as one of our premier partners," said Rich Stalder, sales vice president for PAETEC's South Region. "This is a wonderful opportunity for PAETEC to showcase our personalized solutions at a major league level."
PAETEC will provide the Devil Rays with Local, Long Distance, and Data services at both Tropicana Field and Progress Energy Park (used for Devil Rays' spring training games). Both stadiums are located in St. Petersburg.
In exchange, PAETEC will display on-field signage at Tropicana Field and receive radio spots on the Devil Rays Radio Network, in addition to entertaining guests in Tropicana Field's hospitality suites and new Luxury Club.
Safe Harbor
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements so long as such information is identified as forward-looking and is accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in the information. The use of words such as "may", "might", "will", "should", "expect", "plan", "anticipate", "believe","estimate", "project", "intend", "future", "potential" or "continue", and other similar expressions are intended to identify forward-looking statements.
All of these forward-looking statements are based on estimates and assumptions by management that, although we believe them to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of our control, that may cause our business, industry, strategy or actual results to differ materially from those expressed or implied in the forward-looking statements.
These risks and uncertainties may include those discussed in US LEC's reports on Form 10- K, Form 10-Q and Form 8-K on file with the Securities and Exchange Commission (the "SEC"), and other factors which may not be known to us. Any forward-looking statement speaks only as of its date. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
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Oct 24, 2006 - US LEC Corp and PAETEC Communications Receive Federal Communications Commission Approval for Merger
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CHARLOTTE, NC and FAIRPORT, NY - September 22, 2006 - US LEC Corp. (NASDAQ: CLEC) and privately owned PAETEC Communications announced that they have received Federal Communications Commission (FCC) approval to proceed with the companies' pending merger transaction.
On August 14, 2006, US LEC and PAETEC announced that their Boards of Directors had unanimously approved a definitive merger agreement under which PAETEC and US LEC will become wholly-owned subsidiaries of a new publicly owned holding company ("PAETEC Holding Corp."). The new company expects to trade on the NASDAQ Global Market under the ticker symbol "CLEC".
J. Lyle Patrick, executive vice president and chief financial officer of US LEC commented, "With FCC approval of the transaction, US LEC and PAETEC are one step closer to forming a premier communications provider to business and enterprise customers. PAETEC Holding Corp. is expected to have over $1 billion in pro-forma revenue and $187 million in run-rate adjusted EBITDA. In addition, it will have over 45,000 medium and large enterprise customers and will operate in 52 of the top 100 Metropolitan Service Areas in the U.S. Clearly this is a merger that will be beneficial to customers and stakeholders of both companies."
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over its Private-IP MPLS network. With more than 1,100,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
About US LEC
Based in Charlotte, N.C., US LEC is a full-service provider of IP, data and voice solutions to medium and large businesses and enterprise organizations throughout 16 Eastern states and the District of Columbia. US LEC offers advanced, IP-based, data and voice services such as MPLS VPN and Ethernet, as well as comprehensive Dynamic TSM VoIP-enabled services and features. The company also offers local and long distance services and data services such as frame relay, Multi-Link Frame Relay and ATM. US LEC provides a broad array of complementary services, including conferencing, data backup and recovery, data center services and Web hosting, as well as managed firewall and router services for advanced data networking. US LEC also offers selected voice services in 27 additional states and provides enhanced data services, dedicated Internet services and MegaPOP® (local dial-up Internet access for ISPs) nationwide. For more information about US LEC, visit www.uslec.com.
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Oct 09, 2006 - PAETEC Named Top Overall CLEC by ATLANTIC-ACM
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FAIRPORT, NY - PAETEC Communications, Inc., today announced it has received two Carrier Excellence Awards from ATLANTIC-ACM, a Boston-based telecommunications research consultancy. PAETEC captured both the 2006 Metro Wholesale PRI Product Award and the Competitive Local Exchange Carrier (CLEC) Best-in-Class Service Partner Award. These awards are for the highest average ratings for PAETEC's PRI product and the highest overall ratings for service provision, respectively.
The award is based on the results of ATLANTIC-ACM's 2006 Metro Report Card, with over 5,000 individual ratings of companies' metro products and the operations behind those products. Both retail and wholesale business customers evaluated the providers' performance in key delivery areas including billing, customer service, provisioning, sales representatives, pricing, network, and brand, as well as in nine metro product areas.
"PAETEC's customers in both the retail and wholesale business categories reflected their appreciation for PAETEC's strengths among CLECs in providing metro market services," said Dr. Judy Reed Smith, CEO of ATLANTIC-ACM. "This award reflects the consistency of its operations and ongoing commitment to its customers."
"It is a great honor to receive these awards, particularly as they come as a result of end-user feedback," said PAETEC Chairman and CEO Arunas Chesonis. "It validates our philosophy of providing personalized solutions and unmatched service and support for each of our customers."
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,100,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
About ATLANTIC-ACM
Boston-based ATLANTIC-ACM is a leading provider of strategic research and consulting services serving the telecommunications and information industries. The company has been providing benchmarked customer feedback for carriers in their "Report Card" Series since 1995, with the "Metro Report Card" the newest in the series. In addition, the company assists clients in evaluating telecommunications opportunities for successful investment, market entry and long-term planning. For more information, visit ATLANTIC-ACM's website at http://www.atlantic-acm.com.
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Oct 04, 2006 - PAETEC Completes Nationwide Roll-Out of iPATH VoIP Services
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FAIRPORT, NY - PAETEC Communications, Inc., announced the availability of its iPATH Voice over Internet Protocol (VoIP) Suite of Services to several new markets, including Albany, N.Y., Baltimore, Hartford, Conn., Washington, D.C., and Northern Virginia. The increased availability of iPATH means the innovative solution is now available in every market PAETEC serves.
While the benefits of VoIP are clear: cost efficiencies, converged networks, and improved productivity with enhanced features, these long-term benefits may prove difficult to attain for many companies when weighed against existing network investments and limited capital budgets. iPATH is PAETEC's flexible VoIP solution that offers customers the necessary equipment via the company's Equipment for Services or Equipment Rental programs, in addition to the access, applications, and features they need to achieve the substantial benefits of VoIP while containing operational and capital costs.
The iPATH services include IP T1 (converged voice and data services with dynamic bandwidth allocation) and Hosted IP Telephony (includes Hosted IP Centrex and Hosted IP PBXs). Hosted IP Telephony customers will also have access to Collaboration Services (Voice Messaging, Automatic Call Distribution (ACD), Hosted Voice VPN, Auto Attendant, etc). PAETEC also offers an Aggregated DID product for its wholesale customers. The company's offerings leverage its Private-IP MPLS network with QoS.
Depending on the customer's needs, iPATH's services include a powerful portal which allows customers to self-provision their services, perform moves, adds, and changes, and support real-time call control. The portal includes both personal and group administrative control to help with configuring, activating, and deactivating services.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,100,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Sep 22, 2006 - PAETEC and US LEC Announce Early Termination of Hart-Scott-Rodino Waiting Period For Proposed Merger
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CHARLOTTE, NC and FAIRPORT, NY - September 22, 2006 - US LEC Corp. (NASDAQ: CLEC), a full-service provider of IP, data and voice solutions to businesses and enterprise organizations throughout the Eastern United States, and PAETEC Corp, a privately held supplier of communications solutions to medium and large businesses and institutions, today announced that the companies have received notice from the Federal Trade Commission that early termination of the Hart-Scott-Rodino Antitrust Improvements Act of 1976 with respect to their proposed merger has been granted. The companies expect that the transaction will close in the fourth quarter of 2006.
On August 14, 2006, US LEC and PAETEC announced that their Boards of Directors had unanimously approved a definitive merger agreement under which PAETEC and US LEC will become wholly-owned subsidiaries of a new publicly owned holding company ("PAETEC Holding Corp."). The merger creates a premier communications provider to enterprise customers. PAETEC Holding Corp. will have over 45,000 enterprise customers, consisting of medium and large businesses and institutions. It will operate in 52 of the top 100 Metropolitan Service Areas in the U.S., with a leading presence in the Eastern U.S., as well as several other major markets across the country.
As previously announced, the transaction is subject to closing conditions and regulatory approvals, as well as approval by a majority of both US LEC and PAETEC shareholders.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,100,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
About US LEC
Based in Charlotte, N.C., US LEC is a full-service provider of IP, data and voice solutions to medium and large businesses and enterprise organizations throughout 16 Eastern states and the District of Columbia. US LEC offers advanced, IP-based, data and voice services such as MPLS VPN and Ethernet, as well as comprehensive Dynamic TSM VoIP-enabled services and features. The company also offers local and long distance services and data services such as frame relay, Multi-Link Frame Relay and ATM. US LEC provides a broad array of complementary services, including conferencing, data backup and recovery, data center services and Web hosting, as well as managed firewall and router services for advanced data networking. US LEC also offers selected voice services in 27 additional states and provides enhanced data services, dedicated Internet services and MegaPOP® (local dial-up Internet access for ISPs) nationwide. For more information about US LEC, visit www.uslec.com.
Safe Harbor
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements so long as such information is identified as forward-looking and is accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in the information. The use of words such as "may", "might", "will", "should", "expect", "plan", "anticipate", "believe","estimate", "project", "intend", "future", "potential" or "continue", and other similar expressions are intended to identify forward-looking statements.
All of these forward-looking statements are based on estimates and assumptions by management that, although we believe them to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of our control, that may cause our business, industry, strategy or actual results to differ materially from those expressed or implied in the forward-looking statements.
These risks and uncertainties may include those discussed in US LEC's reports on Form 10- K, Form 10-Q and Form 8-K on file with the Securities and Exchange Commission (the "SEC"), and other factors which may not be known to us. Any forward-looking statement speaks only as of its date. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
Additional Information and Where to Find It
PAETEC Holding Corp. will file with the SEC a registration statement that will contain a proxy statement/prospectus regarding the proposed merger transaction between PAETEC and US LEC, as well as other relevant documents concerning the proposed transaction. Investors and security holders of US LEC are urged to read the proxy statement/prospectus for the transaction and the other relevant documents when they become available because they will contain important information about PAETEC Holding Corp., PAETEC, US LEC and the proposed merger transaction. The proxy statement/prospectus will be mailed to stockholders of US LEC prior to their stockholders meeting. Investors and security holders of US LEC may obtain free copies of the proxy statement/prospectus and other documents filed by PAETEC Holding Corp. with the SEC (when they become available) at the SEC's web site at www.sec.gov. Free copies of the definitive proxy statement/prospectus and other documents also may be obtained by writing to PAETEC, One PAETEC Plaza, 600 Willowbrook Office Park, Fairport, New York 14450, Attention: Investor Relations.
Information regarding the identity of persons who may, under the SEC's rules, be deemed to be participants in the solicitation of stockholders of US LEC in connection with the proposed transaction, and their interests in the solicitation, will be set forth in the proxy statement of US LEC and in the registration statement that will be filed by "PAETEC Holding Corp." with the SEC.
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Sep 19, 2006 - PAETEC Achieves Small and Medium Business Expert Distinction from Avaya
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FAIRPORT, NY - PAETEC Communications, Inc., announced today that it has been designated as a "Small and Medium Business (SMB) Expert" by Avaya Inc. (NYSE:AV), a leading global provider of business communications software, systems and services.
To achieve ranking as "SMB Expert," Avaya BusinessPartners' account executives and systems engineers must demonstrate proficiency in core areas that include customer support, technology knowledge and expertise, sales revenues and marketing support. The program is the first such specialized ranking established by Avaya for its BusinessParters in North America who serve the SMB market. It includes training that focuses on IP telephony and Avaya solutions, sales and technical training on Avaya IP Office, one of Avaya's leading IP telephony solutions for small and medium businesses. IP Office is a secure, intelligent, and easy-to-use converged voice and data system designed especially for small and medium businesses. Avaya has sold more than 70,000 IP Office solutions to companies around the world.
PAETEC sells Avaya communications systems, design and implementation services to businesses across the United States.
"Avaya's designation as an SMB Expert indicates that PAETEC is among the most qualified and knowledgeable communications solutions providers in the industry," said EJ Butler, chief operating officer of PAETEC. "Combine that with our unmatched service and PAETEC offers customers the finest equipment and support in the industry."
"SMB companies need crystal clear information on the capabilities of IP telephony and the difference it can make to the way they operate their businesses, because whatever change they make can have a huge effect on their bottom line," said Patricia Hume, global group vice president, Small and Medium Business Solutions Group, Avaya. "Avaya BusinessPartners who achieve 'SMB Expert' status are sending a message to their customers that they have the professional and technical expertise that's honed for these firms. Because PAETEC is now qualified as an 'SMB Expert', they have increased credibility with its customers, and it reaffirms PAETEC's commitment to excellence in serving these firms with the highest standards and with the communications solutions from Avaya specifically designed to meet their needs."
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
About Avaya
Avaya Inc. designs, builds and manages communications networks for more than 1 million businesses worldwide, including over 90 percent of the FORTUNE 500™. Focused on businesses large to small, Avaya is a world leader in secure and reliable Internet protocol (IP) telephony systems and communications software applications and services.
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Sep 12, 2006 - PAETEC Adds Web Protection to Security Solutions
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FAIRPORT, NY - PAETEC Communications, Inc., today announced the nationwide availability of Web Security, an anticipated addition to the company's security solutions portfolio. Web Security allows customers to protect their Internet traffic from destructive viruses, spyware, and phishing threats, while maintaining control of web content.
"Web Security joins E-mail Scanning Services and Managed Fraud Protection to provide customers with a well-rounded network security solution," said PAETEC Chief Marketing Officer Jack Baron. "This solution allows businesses to benefit from a broad level of integration - across infrastructure, reporting, policy, and threat analysis."
Web Security is comprised of network hosted Web Anti-Spyware, Anti-Virus, and Web URL Filtering. The offering can either be sold as a stand-alone solution or packaged through PAETEC's Web/E-mail Protector, which bundles 50 users of Web Anti-Virus and Anti-Spyware, and Email Scanning's Anti-Virus and Anti-Spam over a full T-1 of Internet Access.
PAETEC's Web Security solutions minimize the negative impact to customers by preventing web threats from reaching the organization's network. Employee productivity can be increased by managing access to inappropriate or non work-related sites with little or no latency in web traffic. Real-time statistics and reporting is available
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Sep 07, 2006 - PAETEC Enters Conferencing Alliance with BrightCom
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IRVINE, CA - PAETEC Communications, Inc., announced that it has entered into a strategic alliance with BrightCom, Inc., the performance leader in enterprise conferencing. Through this alliance, PAETEC will be able to offer BrightCom customer premises web and video conferencing services to its customers, initially on the west coast.
"BrightCom offers a solution that works with all standard equipment and technologies," said Jim Lizon, vice president of equipment services data sales for PAETEC's ISG equipment division, which will facilitate the BrightCom services. "We can now offer a stronger conferencing option that compliments our private-IP MPLS service."
PAETEC provides comprehensive communication solutions for customers, removing the need for separate vendors for various telephony and data services. BrightCom's web and video conference solutions enhance PAETEC's integrated services.
"This strategic alliance will incorporate BrightCom web and video conference solutions in PAETEC's system audits," said BrightCom President John Mudge. "PAETEC will now be able to recommend BrightCom solutions if it fulfills the customer's video and web conference needs."
The BrightCom alliance will enhance PAETEC solution portfolio with the Visual Collaboration System (VCS): A fully integrated 'plug and play' network appliance solution optimized for hosting rich, interactive, live collaborative meetings via a web browser.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
About BrightCom
BrightCom is a provider of a wide range of business communication and collaboration products for the connected enterprise. Many Fortune 500 companies have turned to BrightCom to help them communicate and collaborate more efficiently. BrightCom is a trademark or registered trademark of BrightCom, Inc. All other company and product names may be trademarks of their respective owners.
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Sep 05, 2006 - PAETEC Offers Crisis Connection for Florida Businesses
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FT. LAUDERDALE, FL - PAETEC Communications, Inc., announced today that it is offering a way for businesses in Florida to keep connected during hurricanes. Ready Bridge Crisis Connection was created as an on-demand conference bridge that customers only pay for when they use.
Available only to businesses with Florida locations, Crisis Connection is a dedicated conference hotline with special emergency rates that are activated during hurricane conditions. Employees, customers, and vendors can all call in from geographically diverse locations to instantly access critical information, such as status reports and work schedules. PAETEC created Crisis Connection as a way to help customers by significantly reducing the cost burden of communicating during emergencies.
"We are committed to being a trusted partner in the Florida business community," said Rich Stalder, PAETEC's sales vice president for the south. "As preparations continue for hurricane season, Ready Bridge Crisis Connection provides reliable emergency communications when businesses need it most."
PAETEC has Florida offices in Daytona Beach, Ft. Lauderdale, Miami, Orlando, and Tampa.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Aug 31, 2006 - PAETEC a Finalist for Corporate Citizenship Award
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FAIRPORT, NY - PAETEC Communications, Inc., today announced that the Business Civic Leadership Center (BCLC), a United States Chamber of Commerce affiliate, has named it as a finalist for a Corporate Citizenship Award. PAETEC is a finalist in the Corporate Stewardship category for a Small/Mid-size Business.
"We're honored to be included as a finalist for this award," said PAETEC Chairman and CEO Arunas A. Chesonis. "The Corporate Stewardship Award is a tremendous barometer for companies which attempt to balance financial success with giving back to our communities."
The Corporate Stewardship Award is the most prestigious award in the field of corporate citizenship and recognizes businesses that integrate economic performance with a sustained contribution to community and social progress. PAETEC is being recognized for a combination of factors that reflect its social contributions and economic performance for the past year.
"The companies that are being recognized in the Corporate Stewardship category tell the real story of American business," said Stephen Jordan, BCLC vice president and executive director. "The best companies succeed because they tailor every aspect of their business to serve their customers, investors, employees, and communities as effectively as possible."
A committee chaired by Harvard University professor Michael Porter will select the 2006 Corporate Stewardship Award winner. The winner will be announced on November 8 at BCLC's 7th annual Corporate Citizenship Awards Dinner at the Andrew W. Mellon Auditorium in Washington, D.C. U.S. Chamber President and CEO Thomas J. Donohue and Secretary of Commerce Carlos Gutierrez will present the award.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Aug 29, 2006 - PAETEC Expands its Network Presence in Tampa
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TAMPA, FL - PAETEC Communications, Inc., announced today that it has expanded its telecommunications network capabilities in the Tampa Bay region by opening a switching facility. The switch will provide primary coverage for all LATA 952 (Tampa), and will also provide network redundancy for PAETEC customers in Ft. Lauderdale/Miami and Orlando, currently served out of PAETEC's Miami switch.
The switch, installed due to PAETEC's tremendous market growth since entering the Tampa market in May 2005, allows for a greater number of Florida businesses to access cost-effective data and voice communications solutions with PAETEC's high-quality network.
"Continued expansion in an important state such as Florida strengthens PAETEC's footprint and provides essential, cost-effective communications options for businesses," said Rich Stalder, PAETEC's sales vice president for the South.
PAETEC's switching facility is located at 515 U.S. Highway 301 South, while its Tampa sales office is located at Airport Executive Center, 2203 N. Lois Avenue. In addition to its Miami switch, PAETEC also has sales offices in Daytona Beach, Ft. Lauderdale, and Orlando.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Aug 14, 2006 - PAETEC AND US LEC TO COMBINE IN $1.3 BILLION TRANSACTION
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PAETEC AND US LEC TO COMBINE IN $1.3 BILLION TRANSACTION
Merger Creates Premier Communications Provider to Enterprise Customers
Companies Expect Annual Cost Savings of $40Million, Adjusted EBITDA of $187 Million and Free Cash Flow of $109 Million
CHARLOTTE, NC and FAIRPORT, NY - August 14, 2006 - US LEC Corp. (NASDAQ: CLEC), a full-service provider of IP, data and voice solutions to businesses and enterprise organizations throughout the Eastern United States, and PAETEC, a privately-held supplier of communications solutions to medium and large businesses and institutions, announced today that they have signed a definitive agreement to merge the two companies.
On a pro forma basis, the company will generate nearly $1 billion in revenue, $187 million in adjusted EBITDA, and $109 million in free cash flow (adjusted EBITDA minus capital expenditures). Cost saving synergies of $25 million have been identified in the first year after closing, and $40 million annually beginning in 2008. The combined company will have over 45,000 enterprise customers, consisting of medium and large businesses and institutions. It will operate in 52 of the top 100Metropolitan Service Areas (MSAs) in the U.S., with a leading presence in the Eastern U.S., as well as several other major markets across the country.
Transaction Terms and Structure
Under the terms of the merger agreement, which was approved unanimously by the boards of directors of both companies, PAETEC and US LEC will become wholly-owned subsidiaries of a new publicly owned holding company ("New PAETEC"). Taking into account outstanding rights to acquire shares in the new holding company in the future, US LEC security holders will own approximately 1/3 and PAETEC security holders will own approximately 2/3 of the new holding company. Upon closing, US LEC shareholders will be entitled to receive one share in the new holding company in exchange for each share of US LEC that they currently own, and PAETEC shareholders will be entitled to receive 1.623 shares in exchange for each share of PAETEC that they currently own. Based on US LEC's closing stock price on August 11, 2006, the total enterprise value of the new company will be approximately $1.3 billion. Upon completion of the transaction, "New PAETEC" expects to be listed on the NASDAQ Stock Market under the ticker "CLEC."
Financing and Capital Structure
US LEC and PAETEC will finance the transaction through a combination of debt and cash on hand. Deutsche Bank Securities Inc., Merrill Lynch& Co. and CIT Group, Inc. have provided a full commitment for $850 million of financing for the transaction, which includes refinancing of both companies' debt, US LEC's Series A Preferred Stock and an unused $50 million revolver.
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Jul 24, 2006 - City's Employer-Assisted Housing Initiative Welcomes PAETEC
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ROCHESTER, NY - Arunas A. Chesonis, Chief Executive Officer of PAETEC Communications, announced today that his company will join the City's Employer Assisted Housing Initiative (EAHI). PAETEC Communications will offer $3,000 to any employee who wishes to buy a home in the southwest quadrant of the city. Through EAHI, the City will match PAETEC's $3,000 benefit dollar for dollar. PAETEC employees can receive a total of $6,000 for down payment and closing costs.
Mayor Robert J. Duffy and Julio Vazquez, Commissioner of the City's Department of Community Development welcomed the announcement and thanked Sen. Hillary Clinton during a news conference held at City Hall to announce PAETEC's participation. Sen. Clinton, who sent a video message congratulating PAETEC, and rolled out the EAHI program with Fannie Mae and the City in September, 2003. "I want to congratulate PAETEC specifically Arunas Chesonis, Mayor Duffy and Fannie Mae. This is an innovative partnership between public and private interests designed to help families purchase their own homes," said Senator Clinton.
The homebuyer assistance program is designed to help stabilize city neighborhoods by increasing city home-ownership opportunities. It also helps employers stabilize their workforce. In addition to PAETEC Communications, Kodak, Xerox, Visiting Nurse Service, Unity Health and the City of Rochester are participating employers. HSBC, M&T and Summit Federal Credit Union participate by providing additional incentives such as attractive mortgage products and reduced fees. The Mayor also thanked City Councilwoman Carolee Conklin, Chair of the Housing and Community Development Committee for her strong support of this program.
Under EAHI, participating employers provide their employees a home-buying benefit of $1,000-$3,000 to purchase a home in the City. The employee must be able to obtain a mortgage, live in the home as their primary residence for five years, invest $1,500 toward the purchase of the home and be a first-time city homebuyer (they can own a home outside the City and decide to move into the City to take advantage of the program).
Mr. Chesonis said, "This housing initiative is a great opportunity for our younger employees to purchase their first home in an area of the city that shows tremendous promise for growth. I am grateful that the City is making it easier for our employees to fulfill their home-ownership dreams."
Mayor Duffy praised PAETEC for their commitment to civic leadership and welcomed PAETEC into the circle of local EAHI participating employers. "I am pleased that PAETEC Communications has become a partner with us. Their participation makes home-ownership in the city attractive for families, something that is critical to Rochester's revitalization."
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Jul 13, 2006 - PAETEC CEO Named Committee Chair of Earth System Initiative
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BOSTON - PAETEC Communications, Inc., announced that Chairman and CEO Arunas A. Chesonis assumed the Chair of the Advisory Committee for the Earth System Initiative (ESI) at the Massachusetts Institute of Technology (MIT) as of July 1. ESI serves as a model for interdisciplinary environmental research as it seeks to further an understanding of the interactions between Earth's physical, chemical, and biological processes. In this role, Mr. Chesonis will help promote the work of ESI beyond the academic community and assist in raising ESI's visibility.
"I'm both excited and humbled to have a role within ESI," said Chesonis. "Through PAETEC, I've had the opportunity to positively impact thousands of employees and customers. The work done by ESI potentially impacts every person on this planet."
In recent years, our society has become more aware of the delicate balance of the Earth system, and has devoted much time and energy to debates over how best to ensure a sustainable future for the planet. ESI is predicated on the notion that, to be meaningful, these debates must be informed by reliable scientific data regarding the evolution and current state of our planet. ESI holds a $40 million portfolio for environmental research and involves approximately 40 faculty members and dozens of graduate students and postdoctoral researchers in its research and education programs.
"We are trying to develop an understanding of how our planet works so we can be better stewards," said Dr. Matthew Gardner, executive director of ESI. "Our goal is to develop scientific understanding that can then be used to inform the policy-making process."
Mr. Chesonis founded PAETEC in May 1998, and led the company to revenues of more than $500 million in 2005. He holds a B.S. in Civil Engineering from MIT, and an MBA from the William E. Simon Graduate School of Business at the University of Rochester.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Jun 30, 2006 - PAETEC Honored by Hotel Association of Los Angeles
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LOS ANGELES - PAETEC Communications, Inc., announced that it has received the 2006 Allied Member Award of Excellence from the Hotel Association of Los Angeles. PAETEC Senior Account Executive Karen Kaluzny accepted the award for her leadership role, as PAETEC's representative, in the Association's growth and development over the past year.
"Receiving this award is an acknowledgement of PAETEC's commitment to work with our fellow members in developing solutions which assist the hospitality industry," said Executive Vice President Jeff Burke.
The Hotel Association is the leading trade association of the hotel and lodging industry in Los Angeles County. Its membership is a cross-section of the lodging industry, including professional members, who are owners and managers of both large and smaller lodging properties, and allied members, who are suppliers of products and services used by hotels.
"PAETEC has been a strong and supportive Allied member resource, as the Hotel Association has expanded our leadership role on behalf of the Los Angeles area hotel and lodging industry," said Association Executive Director Mike Pfeiffer. "We are proud to recognize PAETEC, and Karen Kaluzny, with this award."
The Association honored Kaluzny and PAETEC on June 21 at its annual Gala dinner event, held this year at the Omni Hotel in Downtown Los Angeles. PAETEC joined the Association in 2004, when the two organizations signed an agreement for PAETEC to provide voice and data services to Association members.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Jun 20, 2006 - Securities Industry Association Selects PAETEC for IP Voice Trading Services
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NEW YORK, NY - The Securities Industry Association (SIA), an organization bringing together the shared interests of nearly 600 securities firms to accomplish common goals, has selected PAETEC Communications, Inc., to provide IP-based trader voice services to global financial markets. PAETEC's TRADETEC services will be provided to major financial centers via its premier SECURETEC Private-IP MPLS network.
SIA began researching Internet Protocol (IP) voice trading services over a year ago when it issued a formal RFI, reviewed formal bids, and conducted extensive field testing. IP voice trading is attractive for several reasons, including increased operational efficiencies, reduced operational costs, and an inherent disaster recovery capability. The new SIA - PAETEC partnership embraces this concept and will initially focus on IP delivery for Automatic Ring Down, Manual Ring Down, and Hoot & Holler services.
"SIA is pleased to announce our relationship with PAETEC," said SIA President Marc Lackritz. "Financial organizations looking for global IP trading services can now be assured of an innovative, secure, and cost-effective solution."
"We are proud PAETEC has been selected to provide the trader voice services that help fuel the economy," said PAETEC Chairman and Chief Executive Officer Arunas Chesonis. "PAETEC's unique services, robust network, and unmatched support will provide SIA member firms with a superior offering."
Implementation of this affinity agreement is set to commence shortly and all SIA member firms are able to contract for these services.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP)) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
About SIA
The Securities Industry Association brings together the shared interests of more than 600 securities firms to accomplish common goals. SIA's primary mission is to build and maintain public trust and confidence in the securities markets. SIA members (including investment banks, broker-dealers, and mutual fund companies) are active in all U.S. and foreign markets and in all phases of corporate and public finance. According to the Bureau of Labor Statistics, the U.S. securities industry employs nearly 800,000 individuals, and its personnel manage the accounts of nearly 93-million investors directly and indirectly through corporate, thrift, and pension plans. In 2005, the industry generated an estimated $322.4 billion in domestic revenue and an estimated $474 billion in global revenues. (More information about SIA is available at: www.sia.com.)
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Jun 14, 2006 - PAETEC Receives Frost and Sullivan Business Development Strategy Award
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FAIRPORT, NY - PAETEC Communications, Inc., announced that it has been selected as the 2006 recipient of Frost & Sullivan's Award for Business Development Strategy Leadership within the Financial Services Industry for its TRADETEC product. The Award recognizes the company's ability to best perceive commercial business needs, develop products and/or services that meet business needs, successfully introduce products or services to the industry, and identify new market segments to expand the existing customer base.
To select the recipient of this Award, Frost & Sullivan's analyst team tracks all the major participants in the industry, paying close attention to their business development efforts. This process includes interviews with the market participants, customers, and suppliers, along with extensive secondary and technology research. The companies' business development efforts are then analyzed based on the number of new customers, new segments, and commitment to business expansion.
"Receiving this award reaffirms PAETEC's philosophy of working with our customers to develop the products they need," said PAETEC Chief Marketing and Training Officer Jack Baron. "The fact that an organization such as Frost & Sullivan has validated our strategy will push us that much harder to provide the personalized solutions that define PAETEC."
PAETEC's business development strategy revolves around identifying and addressing operational/business process challenges for financial firms. While the company markets both traditional and IP-based voice and data services, its lead offerings include business applications that are designed to help financial institutions enhance productivity as well as improve other back-office operations.
Some of PAETEC's leading offers in the financial segment include:
"PAETEC's business development strategy sets it apart from several of its rivals in the financial services vertical," said Frost & Sullivan research analyst Imran Khan. "The company's "business partner" philosophy helps PAETEC gain a deeper understanding of its client's business/operational challenges and enables it to develop solutions that address those challenges."
For more information about Frost & Sullivan Awards, visit http://www.awards.frost.com.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP)) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Jun 12, 2006 - PAETEC Completes $400 Million Credit Facility
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FAIRPORT, NY - PAETEC Corp. today announced that is has closed on a $400 million Credit Facility. The facility was arranged by Merrill Lynch, CIT Capital Securities LLC, CIBC, Inc., and Deutsche Bank Securities, Inc., for PAETEC. The deal includes $25 million in revolving credit, a $275 million first lien term loan, and a $100 million second lien term loan.
Proceeds from the facilities will allow PAETEC to refinance existing debt and repurchase preferred shares and certain common shares with governance and liquidity rights from the company's investors. The transaction eliminates PAETEC's Series A preferred stock and Class B common stock, thereby resulting in a single outstanding class of common stock for the company.
"We found strong support in the credit market for this transaction," said PAETEC Chief Financial Officer Keith Wilson. "This transaction is important for both PAETEC and its shareholders as it provides for a significantly streamlined corporate governance structure."
In addition to improved corporate governance, the transaction provides strategic flexibility, and more than doubles the percentage of ownership for all common shareholders.
"Operationally, the company has never been stronger," Wilson said. "The changing telecommunications landscape has made PAETEC the alternative choice for medium and large enterprise customers."
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP)) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Jun 07, 2006 - PAETEC Receives Marketer of the Year Award From RAMA
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FAIRPORT, NY - PAETEC Communications, Inc., announced today that it has received the 2006 Marketer of the Year Award from the Rochester chapter of the American Marketing Association (RAMA).
"We are thrilled to be recognized by RAMA for this prestigious award," said PAETEC Chief Marketing and Training Officer Jack Baron. "PAETEC's efforts reflect a comprehensive strategy implemented by a truly professional team of marketers, designers, product developers, and trainers within PAETEC."
The Marketer of the Year Award is presented to an organization that clearly and consistently demonstrates marketing excellence. From its inception in 1998, PAETEC was recognized as a provider of traditional voice products such as local, long distance, and toll-free services to medium- and large-sized businesses across the U.S. The business environment has since changed radically and underwent a rapid metamorphosis. To meet this evolution towards an Internet Protocol (IP)- and data-based industry, PAETEC successfully implemented an ambitious plan to expand its service portfolio to include sophisticated data and security services, and increase awareness of this transition within our customer and employee bases. PAETEC achieved this goal by launching complementary integrated campaigns targeted to both audiences that included Customer Advisory Boards, internal and external newsletters, updated intranet and Internet sites, Webinars, employee training and testing, and more.
"Congratulations to PAETEC for winning the Rochester Marketer of the Year Award for 2006," said Manish Puri, president of RAMA. "PAETEC has created a strong relationship with its customers and has done an incredible job of listening to them continuously and to incorporate their suggestions in its product and service offerings. PAETEC has strongly embodied customer evangelism in its business philosophy."
PAETEC was honored at a lunchtime ceremony held at the Rochester Riverside Convention Center. The judging was conducted by a group of independent marketing experts from around the country. Other award winners included a division of Eastman Kodak Co. for the Turn Around/Start-up Marketer Award, and the Rochester Museum and Science Center for the Non-Profit Marketer of the Year.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP)) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Jun 05, 2006 - PAETEC Selects Lucent Technologies' New 'Smart' Call Processing Service
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Dec 20, 2006 - PAETEC Interconnects With Stealth's Voice Peering Fabric
Dec 05, 2006 - PAETEC Wins Selling Power Sales Excellence Award
Dec 04, 2006 - PAETEC Launches Online Account Management Tool
Nov 27, 2006 - Simon School Receives Major Gift From Arunas and Pamela Chesonis
Nov 22, 2006 - PAETEC Receives Positive Rating in TEM Report by Leading Analyst Firm
Nov 17, 2006 - PAETEC Receives Corporate Philanthropy Award
Nov 09, 2006 - PAETEC Announces Two 40 Under 40 Recipients
Nov 06, 2006 - PAETEC Signs Service Agreement with Tampa Bay Devil Rays
Oct 24, 2006 - US LEC Corp and PAETEC Communications Receive Federal Communications Commission Approval for Merger
Oct 09, 2006 - PAETEC Named Top Overall CLEC by ATLANTIC-ACM
Oct 04, 2006 - PAETEC Completes Nationwide Roll-Out of iPATH VoIP Services
Sep 22, 2006 - PAETEC and US LEC Announce Early Termination of Hart-Scott-Rodino Waiting Period For Proposed Merger
Sep 19, 2006 - PAETEC Achieves Small and Medium Business Expert Distinction from Avaya
Sep 12, 2006 - PAETEC Adds Web Protection to Security Solutions
Sep 07, 2006 - PAETEC Enters Conferencing Alliance with BrightCom
Sep 05, 2006 - PAETEC Offers Crisis Connection for Florida Businesses
Aug 31, 2006 - PAETEC a Finalist for Corporate Citizenship Award
Aug 29, 2006 - PAETEC Expands its Network Presence in Tampa
Aug 14, 2006 - PAETEC AND US LEC TO COMBINE IN $1.3 BILLION TRANSACTION
Jul 24, 2006 - City's Employer-Assisted Housing Initiative Welcomes PAETEC
Jul 13, 2006 - PAETEC CEO Named Committee Chair of Earth System Initiative
Jun 30, 2006 - PAETEC Honored by Hotel Association of Los Angeles
Jun 20, 2006 - Securities Industry Association Selects PAETEC for IP Voice Trading Services
Jun 14, 2006 - PAETEC Receives Frost and Sullivan Business Development Strategy Award
Jun 12, 2006 - PAETEC Completes $400 Million Credit Facility
Jun 07, 2006 - PAETEC Receives Marketer of the Year Award From RAMA
Jun 05, 2006 - PAETEC Selects Lucent Technologies' New 'Smart' Call Processing Service
May 31, 2006 - PAETEC Signs Software Contract with the City of New York
May 18, 2006 - PAETEC Welcomes New Board Member Mark Zupan
May 09, 2006 - PAETEC SECURETEC MPLS Now Has a World-Reach
May 02, 2006 - PAETEC Now Offers Software for Services Financing Program
Apr 06, 2006 - PAETEC CEO Receives Entrepreneurial Award from RIT
Apr 04, 2006 - PAETEC Solution Now Rated 'Avaya Compliant'
Mar 31, 2006 - PAETEC, CICU Team to Cut Higher Education Costs in New York
Mar 28, 2006 - PAETEC Commended by New York Public Service Commission
Mar 23, 2006 - PAETEC Welcomes New Board Member Keith Wilson
Mar 02, 2006 - PAETEC Surpasses One Million Access Lines in Service
Mar 01, 2006 - PAETEC Completes $125 Million Credit Facility
Feb 17, 2006 - PAETEC Employees Achieve Bonus Award
Feb 02, 2006 - Brooks Announces PAETEC Communications to Expand in Monroe County
Jan 23, 2006 - PAETEC Launches iPATH, a Suite of VoIP Services for Businesses
Jan 19, 2006 - PAETEC Donates More Than $770,000 to Charities in 2005
Dec 20, 2006 - PAETEC Interconnects With Stealth's Voice Peering Fabric
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FAIRPORT, NY - PAETEC Communications today announced that it has interconnected with Stealth Communications' Voice Peering Fabric™ (VPF), the world's largest peering network for voice communications and telephony services.
Launched in 2003, the VPF is a large and secure private distributed Ethernet network that functions as an exchange, or meet-point, for service providers and enterprises to either exchange VoIP traffic in a secure, quality-of-service environment, or to distribute and access various applications.
Predominantly serving businesses, higher educational institutions, and service providers, the VPF eliminates the need to provision circuits every time a member makes a new connection to another member and, as the VPF expands to a wider footprint, those who subscribe to the network automatically reach into wider geographies through a single interconnection.
"We welcome PAETEC to the VPF Community. With PAETEC's unique coverage capabilities, VPF members now have additional reach and coverage to remain competitive in this rapidly emerging marketplace," said Shrihari Pandit, president and CEO of Stealth Communications. "The VPF continues to play a key role in reducing operating costs for service providers by moving calls entirely into the IP domain."
By joining the VPF, PAETEC is able to rapidly deliver its IP DID Origination services to VoIP providers located anywhere within the reach of the VPF (currently to domestic U.S., Canada, and the United Kingdom). In addition, PAETEC can offer IP Termination services throughout the domestic U.S., and IP Transit services to any VPF subscriber.
"VoIP providers and end users need the ability to exchange traffic via a quality interconnection infrastructure," said EJ Butler, chief operating officer for PAETEC. "Through the VPF, PAETEC can quickly and easily offer VPF members our quality products and services throughout an extensive and rapidly expanding footprint."
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over its Private-IP MPLS network. With more than 1,100,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
About Stealth Communications
Stealth Communications celebrates more then a decade in the telecom industry with its successful lines of services based on Ethernet and IP technology. With a positive attitude towards improving telecommunications and endless innovation benefiting communities, Stealth has earned a great reputation in the industry by providing quality services and customer satisfaction. Stealth works closely with its customers and partners who are in the telecom, financial, realty, educational and government sector. For more information on Stealth and the VPF, visit" www.stealth.net and www.thevpf.com.
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Dec 05, 2006 - PAETEC Wins Selling Power Sales Excellence Award
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LAS VEGAS - Selling Power magazine announced that PAETEC Communications, Inc., was presented with a Stevie™ Award for being named the Telecommunications Sales Organization of the Year. PAETEC received the award at the 2006 Selling Power Sales Excellence Awards celebration, held last night at the Westin Casuarina Hotel, Spa & Casino in Las Vegas. More than 230 nominated sales executives from around the world attended the event. PAETEC was also a finalist in the Sales Training Program of the Year category.
"We built the organization around our sales force, so this award will be highly valued throughout the company," said PAETEC President of Alternate Channels Chris Bantoft, who accepted the award on behalf of the company. "In a sense, we believe that every role in the company is a sales role."
"Our company has achieved tremendous success in our eight years of existence by consistently exceeding our sales targets, and the quality of our sales force is a primary reason," said PAETEC Executive Vice President of Sales Mario DeRiggi. "We empower our sales people to create unique solutions for our customers, and we provide the training, products, and back-office support for them to do so."
The awards were jointly presented by Selling Power magazine, the leading sales management publication with 145,000 subscribers in 67 countries, and The Stevie Awards, which have been hailed as "the business world's own Oscars" by the New York Post (April 27, 2005).
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over its Private-IP MPLS network. With more than 1,100,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
About The Stevie Awards
Hailed as "the business world's own Oscars" by the New York Post (April 27, 2005), Stevie Awards are conferred in four programs: The American Business Awards, The International Business Awards, The Stevie Awards for Women in Business, and the Selling Power Sales Excellence Awards. Honoring companies of all types and sizes and the people behind them, the Stevies recognize outstanding performances in the workplace worldwide. Learn more about The Stevie Awards at www.stevieawards.com.
About Selling Power
Selling Power is the world's leading sales management magazine with more than 145,000 subscribers in 67 countries. Learn more at www.sellingpower.com.
Sponsors of the 2006 Selling Power Sales Excellence Awards include Careerbuilder.com, Factiva, Fusion Sales Partners, HR Chally, and SAP.
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Dec 04, 2006 - PAETEC Launches Online Account Management Tool
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FAIRPORT, NY - PAETEC Communications, Inc., today announced the debut of PAETEC Online, the company's completely redesigned Internet-based account management tool for customers. This value-added service is available to all new and existing customers.
PAETEC Online features a new look and improved navigation, replacing the functionality found in PAETEC's WebFront customer interface. PAETEC Online allows customers to perform such account maintenance as paying bills online, activating new services, obtaining network utilization reports, and much more. Additionally, technical improvements to the application will allow the company to more quickly introduce new features to customers.
"PAETEC Online allows an immediate and secure option for our customers to interact with PAETEC," said Jack Baron, Chief Marketing Officer for PAETEC. "We researched numerous customer interfaces across multiple industries while also asking our customers what features they wanted. We then designed PAETEC Online as a flexible way for the customer to self-service their account."
PAETEC Online can be accessed at www.paeteconline.com.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over its Private-IP MPLS network. With more than 1,100,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Nov 27, 2006 - Simon School Receives Major Gift From Arunas and Pamela Chesonis
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ROCHESTER, NY - Arunas and Pamela Chesonis have pledged $1.5 million to the Simon Graduate School of Business at the University of Rochester over the next three years to establish Chesonis Entrepreneurial Scholarships for full-time M.B.A. students interested in Entrepreneurship.
The scholarships are an effort to leverage the Simon School's top-ranked business education into growing the region's next generation of entrepreneurs. Every year up to 10 scholarships will be awarded based on candidates' need, merit and entrepreneurial spirit.
"We are most appreciative of Arunas and Pamela Chesonis's extraordinary vision and generosity," says University President Joel Seligman. "Their gift represents a major commitment both to the Simon Graduate School of Business and to the economic vitality of the greater Rochester region."
Arunas Chesonis, a 1991 graduate of the Simon School, is founder, chairman and C.E.O. of PAETEC Communications, Inc., one of the nation's fastest growing telecommunications companies, headquartered in Fairport, N.Y.
"The Simon School was instrumental in giving me the skills and confidence to fulfill my entrepreneurial goals," Chesonis explains. "My wife and I are proud to deepen our relationship with the program and hope that our support allows others the means to pursue their dreams." Chesonis will be actively involved in mentoring the scholarship recipients.
"We are deeply grateful to Arunas and Pamela Chesonis for this generous gift," says Simon School Dean Mark Zupan. "Each year, if we can graduate several students just like Arunas, that will be the most fitting tribute to their generosity and a significant contribution to the long-run vitality of our region."
Monroe County Executive Maggie Brooks views the scholarships as a positive boost for the entire Rochester area. "The growth and vitality of our future economy is directly linked to our ability to support entrepreneurs and start-up companies, while also cultivating the next generation of entrepreneurs in our region," says Brooks. "Monroe County is proud to be home to top-ranked educational institutions like the Simon School, and entrepreneurial success stories like PAETEC Communications. I applaud Dean Zupan and Chairman Chesonis on this outstanding partnership."
Chesonis has long supported the Simon School, in particular through his mentoring of Simon student interns and brand management project work at PAETEC.
The Simon School prides itself as the place Where Thinkers Become Leaders™ and is currently ranked among the leading graduate business schools in the world in rankings published by the popular press, including BusinessWeek, U.S. News & World Report, The Wall Street Journal, Financial Times and Forbes. For example, in the most recent BusinessWeek poll, the Simon School was ranked among the top 30 business schools in the United States. The Financial Times recently rated the School 4th in the world for finance and 6th in the world for both accounting and managerial economics. More information about the Simon School is available on the World Wide Web at http://www.simon.rochester.edu.
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Nov 22, 2006 - PAETEC Receives Positive Rating in TEM Report by Leading Analyst Firm
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FAIRPORT, NY - FAIRPORT, NY - PAETEC Communications, Inc., announced that its PINNACLE Communications Management Suite rated "Positive" among national TEM vendors in Gartner's October 2006 "MarketScope for Telecom Expense Management, 2H06" report. Gartner has based its ratings on discussions with each vendor, their customers, and companies that have engaged the vendors in the sales cycle - all of which was weighted against evaluation criteria, including business model, customer experience, innovation, product/service, and overall viability.
"PAETEC's world-class, carrier-grade data center and redundant nationwide network has the capacity to sustain rapid performance growth, increased hosted customers, and continued quality services," said Burke. "These world-class facilities provide our PINNACLE customers with a secure, scalable, and flexible hosted service environment."
The complete MarketScope for Telecom Expense Management, 2H06, authored by Eric Goodness and Phillip Redman at Gartner can be viewed at www.gartner.com.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over its Private-IP MPLS network. With more than 1,100,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
About PINNACLE
The PINNACLE Communications Management Suite is a fully integrated software application designed for large enterprise customers to enable effective communications lifecycle management. PINNACLE streamlines your enterprise operations, ensuring visibility, accountability, productivity, and compatibility. Gain instant access to real-time cost and operational details, improve cost accountability and billing accuracy, achieve operational efficiency, and implement compatible systems - all while realizing significant hard-dollar savings. PINNACLE is a single, comprehensive solution that consolidates the business service management and delivery of all of your technology-related services.
PAETEC acquired Pinnacle Software, Corp., in April 2000, and has supported the development and success of its premier software product suite for the past six years.
About MarketScope
The MarketScope is copyrighted October 27, 2006, by Gartner, Inc. and is reused with permission. The MarketScope is an evaluation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the MarketScope, and does not advise technology users to select only those vendors with the highest rating. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
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Nov 17, 2006 - PAETEC Receives Corporate Philanthropy Award
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FAIRPORT, NY - PAETEC Communications, Inc., announced that it has received the Outstanding Corporation award as presented by the Association of Fundraising Professionals, Genesee Valley Chapter. PAETEC was honored for its financial and volunteer efforts with Sojourner House, along with its support for numerous other Rochester-area not-for-profit organizations.
"We're honored to receive this award," said PAETEC Chairman and CEO Arunas A. Chesonis. "The Outstanding Corporation award is tremendous validation that PAETEC is having a measurable impact in the communities in which we do business."
Ms. DiLuglio is on the Board of Directors for Gilda's Club Rochester, and was named as that organization's 2006 outstanding volunteer. She also is manager of the Webster Soccer Association's girls travel soccer team, and volunteers with Junior Achievement. She and her husband, Rick, have one daughter.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over its Private-IP MPLS network. With more than 1,100,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Nov 09, 2006 - PAETEC Announces Two 40 Under 40 Recipients
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FAIRPORT, NY - PAETEC Communications, Inc., announced that Senior Corporate Counsel Eric Black and Director of Accounting Sandra DiLuglio each received the Rochester Business Journal's prestigious '40 Under 40' award. This honor is bestowed each year upon exceptional business leaders under the age of 40 in the greater Rochester area.
Mr. Black is on the Board of Directors for the Center for Youth Services and is a junior varsity football and basketball coach in the Rush-Henrietta School District. He also volunteers for the Special Olympics, and shares his life experiences through classroom visits with students throughout Monroe County. Mr. Black was named as one of Rochester's Emerging African-American Leaders in 2006.
Mr. Black is the lead retail and wholesale sales contract negotiator for the Legal department at PAETEC, including bid responses to Requests for Proposals. In addition, he is the primary legal contact for government contracting issues and customer disputes. Mr. Black has experience in both mergers and acquisitions, and in representing higher education and not-for-profit organizations through prior positions with Nixon Peabody LLP, and Global Crossing. He is a member of the Bar Association in both New York and Virginia, and holds a bachelor's degree in Economics from the Univeristy of Rochester, and a Juris Doctor from the University of Virginia School of Law. He and his wife, Jennifer, have two sons.
Ms. DiLuglio directs the internal financial reporting for PAETEC, which consists of directing, organizing, and coordinating the financial closing, internal reporting of the financial books, and cash disbursements on a timely and accurate basis. She coordinates the communication of financial results to top management, back office, and sales personnel. Ms. DiLuglio also acts as the liaison between PAETEC and the company's external audit firm, and performs accounting due diligence for potential merger and acquistion activity. She holds a B.S. in Management and an MBA, both from St. John Fisher College.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over its Private-IP MPLS network. With more than 1,100,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Nov 06, 2006 - PAETEC Signs Service Agreement with Tampa Bay Devil Rays
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TAMPA, FLA - PAETEC Communications, Inc., and Major League Baseball's Tampa Bay Devil Rays have announced a multi-year agreement that includes sponsorship opportunities for PAETEC and telecommunications solutions for the Devil Rays.
"We're proud to include the Tampa Bay Devil Rays as one of our premier partners," said Rich Stalder, sales vice president for PAETEC's South Region. "This is a wonderful opportunity for PAETEC to showcase our personalized solutions at a major league level."
PAETEC will provide the Devil Rays with Local, Long Distance, and Data services at both Tropicana Field and Progress Energy Park (used for Devil Rays' spring training games). Both stadiums are located in St. Petersburg.
In exchange, PAETEC will display on-field signage at Tropicana Field and receive radio spots on the Devil Rays Radio Network, in addition to entertaining guests in Tropicana Field's hospitality suites and new Luxury Club.
Safe Harbor
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements so long as such information is identified as forward-looking and is accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in the information. The use of words such as "may", "might", "will", "should", "expect", "plan", "anticipate", "believe","estimate", "project", "intend", "future", "potential" or "continue", and other similar expressions are intended to identify forward-looking statements.
All of these forward-looking statements are based on estimates and assumptions by management that, although we believe them to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of our control, that may cause our business, industry, strategy or actual results to differ materially from those expressed or implied in the forward-looking statements.
These risks and uncertainties may include those discussed in US LEC's reports on Form 10- K, Form 10-Q and Form 8-K on file with the Securities and Exchange Commission (the "SEC"), and other factors which may not be known to us. Any forward-looking statement speaks only as of its date. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
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Oct 24, 2006 - US LEC Corp and PAETEC Communications Receive Federal Communications Commission Approval for Merger
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CHARLOTTE, NC and FAIRPORT, NY - September 22, 2006 - US LEC Corp. (NASDAQ: CLEC) and privately owned PAETEC Communications announced that they have received Federal Communications Commission (FCC) approval to proceed with the companies' pending merger transaction.
On August 14, 2006, US LEC and PAETEC announced that their Boards of Directors had unanimously approved a definitive merger agreement under which PAETEC and US LEC will become wholly-owned subsidiaries of a new publicly owned holding company ("PAETEC Holding Corp."). The new company expects to trade on the NASDAQ Global Market under the ticker symbol "CLEC".
J. Lyle Patrick, executive vice president and chief financial officer of US LEC commented, "With FCC approval of the transaction, US LEC and PAETEC are one step closer to forming a premier communications provider to business and enterprise customers. PAETEC Holding Corp. is expected to have over $1 billion in pro-forma revenue and $187 million in run-rate adjusted EBITDA. In addition, it will have over 45,000 medium and large enterprise customers and will operate in 52 of the top 100 Metropolitan Service Areas in the U.S. Clearly this is a merger that will be beneficial to customers and stakeholders of both companies."
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over its Private-IP MPLS network. With more than 1,100,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
About US LEC
Based in Charlotte, N.C., US LEC is a full-service provider of IP, data and voice solutions to medium and large businesses and enterprise organizations throughout 16 Eastern states and the District of Columbia. US LEC offers advanced, IP-based, data and voice services such as MPLS VPN and Ethernet, as well as comprehensive Dynamic TSM VoIP-enabled services and features. The company also offers local and long distance services and data services such as frame relay, Multi-Link Frame Relay and ATM. US LEC provides a broad array of complementary services, including conferencing, data backup and recovery, data center services and Web hosting, as well as managed firewall and router services for advanced data networking. US LEC also offers selected voice services in 27 additional states and provides enhanced data services, dedicated Internet services and MegaPOP® (local dial-up Internet access for ISPs) nationwide. For more information about US LEC, visit www.uslec.com.
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Oct 09, 2006 - PAETEC Named Top Overall CLEC by ATLANTIC-ACM
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FAIRPORT, NY - PAETEC Communications, Inc., today announced it has received two Carrier Excellence Awards from ATLANTIC-ACM, a Boston-based telecommunications research consultancy. PAETEC captured both the 2006 Metro Wholesale PRI Product Award and the Competitive Local Exchange Carrier (CLEC) Best-in-Class Service Partner Award. These awards are for the highest average ratings for PAETEC's PRI product and the highest overall ratings for service provision, respectively.
The award is based on the results of ATLANTIC-ACM's 2006 Metro Report Card, with over 5,000 individual ratings of companies' metro products and the operations behind those products. Both retail and wholesale business customers evaluated the providers' performance in key delivery areas including billing, customer service, provisioning, sales representatives, pricing, network, and brand, as well as in nine metro product areas.
"PAETEC's customers in both the retail and wholesale business categories reflected their appreciation for PAETEC's strengths among CLECs in providing metro market services," said Dr. Judy Reed Smith, CEO of ATLANTIC-ACM. "This award reflects the consistency of its operations and ongoing commitment to its customers."
"It is a great honor to receive these awards, particularly as they come as a result of end-user feedback," said PAETEC Chairman and CEO Arunas Chesonis. "It validates our philosophy of providing personalized solutions and unmatched service and support for each of our customers."
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,100,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
About ATLANTIC-ACM
Boston-based ATLANTIC-ACM is a leading provider of strategic research and consulting services serving the telecommunications and information industries. The company has been providing benchmarked customer feedback for carriers in their "Report Card" Series since 1995, with the "Metro Report Card" the newest in the series. In addition, the company assists clients in evaluating telecommunications opportunities for successful investment, market entry and long-term planning. For more information, visit ATLANTIC-ACM's website at http://www.atlantic-acm.com.
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Oct 04, 2006 - PAETEC Completes Nationwide Roll-Out of iPATH VoIP Services
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FAIRPORT, NY - PAETEC Communications, Inc., announced the availability of its iPATH Voice over Internet Protocol (VoIP) Suite of Services to several new markets, including Albany, N.Y., Baltimore, Hartford, Conn., Washington, D.C., and Northern Virginia. The increased availability of iPATH means the innovative solution is now available in every market PAETEC serves.
While the benefits of VoIP are clear: cost efficiencies, converged networks, and improved productivity with enhanced features, these long-term benefits may prove difficult to attain for many companies when weighed against existing network investments and limited capital budgets. iPATH is PAETEC's flexible VoIP solution that offers customers the necessary equipment via the company's Equipment for Services or Equipment Rental programs, in addition to the access, applications, and features they need to achieve the substantial benefits of VoIP while containing operational and capital costs.
The iPATH services include IP T1 (converged voice and data services with dynamic bandwidth allocation) and Hosted IP Telephony (includes Hosted IP Centrex and Hosted IP PBXs). Hosted IP Telephony customers will also have access to Collaboration Services (Voice Messaging, Automatic Call Distribution (ACD), Hosted Voice VPN, Auto Attendant, etc). PAETEC also offers an Aggregated DID product for its wholesale customers. The company's offerings leverage its Private-IP MPLS network with QoS.
Depending on the customer's needs, iPATH's services include a powerful portal which allows customers to self-provision their services, perform moves, adds, and changes, and support real-time call control. The portal includes both personal and group administrative control to help with configuring, activating, and deactivating services.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,100,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Sep 22, 2006 - PAETEC and US LEC Announce Early Termination of Hart-Scott-Rodino Waiting Period For Proposed Merger
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CHARLOTTE, NC and FAIRPORT, NY - September 22, 2006 - US LEC Corp. (NASDAQ: CLEC), a full-service provider of IP, data and voice solutions to businesses and enterprise organizations throughout the Eastern United States, and PAETEC Corp, a privately held supplier of communications solutions to medium and large businesses and institutions, today announced that the companies have received notice from the Federal Trade Commission that early termination of the Hart-Scott-Rodino Antitrust Improvements Act of 1976 with respect to their proposed merger has been granted. The companies expect that the transaction will close in the fourth quarter of 2006.
On August 14, 2006, US LEC and PAETEC announced that their Boards of Directors had unanimously approved a definitive merger agreement under which PAETEC and US LEC will become wholly-owned subsidiaries of a new publicly owned holding company ("PAETEC Holding Corp."). The merger creates a premier communications provider to enterprise customers. PAETEC Holding Corp. will have over 45,000 enterprise customers, consisting of medium and large businesses and institutions. It will operate in 52 of the top 100 Metropolitan Service Areas in the U.S., with a leading presence in the Eastern U.S., as well as several other major markets across the country.
As previously announced, the transaction is subject to closing conditions and regulatory approvals, as well as approval by a majority of both US LEC and PAETEC shareholders.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,100,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
About US LEC
Based in Charlotte, N.C., US LEC is a full-service provider of IP, data and voice solutions to medium and large businesses and enterprise organizations throughout 16 Eastern states and the District of Columbia. US LEC offers advanced, IP-based, data and voice services such as MPLS VPN and Ethernet, as well as comprehensive Dynamic TSM VoIP-enabled services and features. The company also offers local and long distance services and data services such as frame relay, Multi-Link Frame Relay and ATM. US LEC provides a broad array of complementary services, including conferencing, data backup and recovery, data center services and Web hosting, as well as managed firewall and router services for advanced data networking. US LEC also offers selected voice services in 27 additional states and provides enhanced data services, dedicated Internet services and MegaPOP® (local dial-up Internet access for ISPs) nationwide. For more information about US LEC, visit www.uslec.com.
Safe Harbor
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements so long as such information is identified as forward-looking and is accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in the information. The use of words such as "may", "might", "will", "should", "expect", "plan", "anticipate", "believe","estimate", "project", "intend", "future", "potential" or "continue", and other similar expressions are intended to identify forward-looking statements.
All of these forward-looking statements are based on estimates and assumptions by management that, although we believe them to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of our control, that may cause our business, industry, strategy or actual results to differ materially from those expressed or implied in the forward-looking statements.
These risks and uncertainties may include those discussed in US LEC's reports on Form 10- K, Form 10-Q and Form 8-K on file with the Securities and Exchange Commission (the "SEC"), and other factors which may not be known to us. Any forward-looking statement speaks only as of its date. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
Additional Information and Where to Find It
PAETEC Holding Corp. will file with the SEC a registration statement that will contain a proxy statement/prospectus regarding the proposed merger transaction between PAETEC and US LEC, as well as other relevant documents concerning the proposed transaction. Investors and security holders of US LEC are urged to read the proxy statement/prospectus for the transaction and the other relevant documents when they become available because they will contain important information about PAETEC Holding Corp., PAETEC, US LEC and the proposed merger transaction. The proxy statement/prospectus will be mailed to stockholders of US LEC prior to their stockholders meeting. Investors and security holders of US LEC may obtain free copies of the proxy statement/prospectus and other documents filed by PAETEC Holding Corp. with the SEC (when they become available) at the SEC's web site at www.sec.gov. Free copies of the definitive proxy statement/prospectus and other documents also may be obtained by writing to PAETEC, One PAETEC Plaza, 600 Willowbrook Office Park, Fairport, New York 14450, Attention: Investor Relations.
Information regarding the identity of persons who may, under the SEC's rules, be deemed to be participants in the solicitation of stockholders of US LEC in connection with the proposed transaction, and their interests in the solicitation, will be set forth in the proxy statement of US LEC and in the registration statement that will be filed by "PAETEC Holding Corp." with the SEC.
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Sep 19, 2006 - PAETEC Achieves Small and Medium Business Expert Distinction from Avaya
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FAIRPORT, NY - PAETEC Communications, Inc., announced today that it has been designated as a "Small and Medium Business (SMB) Expert" by Avaya Inc. (NYSE:AV), a leading global provider of business communications software, systems and services.
To achieve ranking as "SMB Expert," Avaya BusinessPartners' account executives and systems engineers must demonstrate proficiency in core areas that include customer support, technology knowledge and expertise, sales revenues and marketing support. The program is the first such specialized ranking established by Avaya for its BusinessParters in North America who serve the SMB market. It includes training that focuses on IP telephony and Avaya solutions, sales and technical training on Avaya IP Office, one of Avaya's leading IP telephony solutions for small and medium businesses. IP Office is a secure, intelligent, and easy-to-use converged voice and data system designed especially for small and medium businesses. Avaya has sold more than 70,000 IP Office solutions to companies around the world.
PAETEC sells Avaya communications systems, design and implementation services to businesses across the United States.
"Avaya's designation as an SMB Expert indicates that PAETEC is among the most qualified and knowledgeable communications solutions providers in the industry," said EJ Butler, chief operating officer of PAETEC. "Combine that with our unmatched service and PAETEC offers customers the finest equipment and support in the industry."
"SMB companies need crystal clear information on the capabilities of IP telephony and the difference it can make to the way they operate their businesses, because whatever change they make can have a huge effect on their bottom line," said Patricia Hume, global group vice president, Small and Medium Business Solutions Group, Avaya. "Avaya BusinessPartners who achieve 'SMB Expert' status are sending a message to their customers that they have the professional and technical expertise that's honed for these firms. Because PAETEC is now qualified as an 'SMB Expert', they have increased credibility with its customers, and it reaffirms PAETEC's commitment to excellence in serving these firms with the highest standards and with the communications solutions from Avaya specifically designed to meet their needs."
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
About Avaya
Avaya Inc. designs, builds and manages communications networks for more than 1 million businesses worldwide, including over 90 percent of the FORTUNE 500™. Focused on businesses large to small, Avaya is a world leader in secure and reliable Internet protocol (IP) telephony systems and communications software applications and services.
Driving the convergence of voice and data communications with business applications - and distinguished by comprehensive worldwide services - Avaya helps customers leverage existing and new networks to achieve superior business results. For more information visit the Avaya website: www.avaya.com.
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Sep 12, 2006 - PAETEC Adds Web Protection to Security Solutions
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FAIRPORT, NY - PAETEC Communications, Inc., today announced the nationwide availability of Web Security, an anticipated addition to the company's security solutions portfolio. Web Security allows customers to protect their Internet traffic from destructive viruses, spyware, and phishing threats, while maintaining control of web content.
"Web Security joins E-mail Scanning Services and Managed Fraud Protection to provide customers with a well-rounded network security solution," said PAETEC Chief Marketing Officer Jack Baron. "This solution allows businesses to benefit from a broad level of integration - across infrastructure, reporting, policy, and threat analysis."
Web Security is comprised of network hosted Web Anti-Spyware, Anti-Virus, and Web URL Filtering. The offering can either be sold as a stand-alone solution or packaged through PAETEC's Web/E-mail Protector, which bundles 50 users of Web Anti-Virus and Anti-Spyware, and Email Scanning's Anti-Virus and Anti-Spam over a full T-1 of Internet Access.
PAETEC's Web Security solutions minimize the negative impact to customers by preventing web threats from reaching the organization's network. Employee productivity can be increased by managing access to inappropriate or non work-related sites with little or no latency in web traffic. Real-time statistics and reporting is available
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Sep 07, 2006 - PAETEC Enters Conferencing Alliance with BrightCom
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IRVINE, CA - PAETEC Communications, Inc., announced that it has entered into a strategic alliance with BrightCom, Inc., the performance leader in enterprise conferencing. Through this alliance, PAETEC will be able to offer BrightCom customer premises web and video conferencing services to its customers, initially on the west coast.
"BrightCom offers a solution that works with all standard equipment and technologies," said Jim Lizon, vice president of equipment services data sales for PAETEC's ISG equipment division, which will facilitate the BrightCom services. "We can now offer a stronger conferencing option that compliments our private-IP MPLS service."
PAETEC provides comprehensive communication solutions for customers, removing the need for separate vendors for various telephony and data services. BrightCom's web and video conference solutions enhance PAETEC's integrated services.
"This strategic alliance will incorporate BrightCom web and video conference solutions in PAETEC's system audits," said BrightCom President John Mudge. "PAETEC will now be able to recommend BrightCom solutions if it fulfills the customer's video and web conference needs."
The BrightCom alliance will enhance PAETEC solution portfolio with the Visual Collaboration System (VCS): A fully integrated 'plug and play' network appliance solution optimized for hosting rich, interactive, live collaborative meetings via a web browser.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
About BrightCom
BrightCom is a provider of a wide range of business communication and collaboration products for the connected enterprise. Many Fortune 500 companies have turned to BrightCom to help them communicate and collaborate more efficiently. BrightCom is a trademark or registered trademark of BrightCom, Inc. All other company and product names may be trademarks of their respective owners.
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Sep 05, 2006 - PAETEC Offers Crisis Connection for Florida Businesses
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FT. LAUDERDALE, FL - PAETEC Communications, Inc., announced today that it is offering a way for businesses in Florida to keep connected during hurricanes. Ready Bridge Crisis Connection was created as an on-demand conference bridge that customers only pay for when they use.
Available only to businesses with Florida locations, Crisis Connection is a dedicated conference hotline with special emergency rates that are activated during hurricane conditions. Employees, customers, and vendors can all call in from geographically diverse locations to instantly access critical information, such as status reports and work schedules. PAETEC created Crisis Connection as a way to help customers by significantly reducing the cost burden of communicating during emergencies.
"We are committed to being a trusted partner in the Florida business community," said Rich Stalder, PAETEC's sales vice president for the south. "As preparations continue for hurricane season, Ready Bridge Crisis Connection provides reliable emergency communications when businesses need it most."
PAETEC has Florida offices in Daytona Beach, Ft. Lauderdale, Miami, Orlando, and Tampa.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Aug 31, 2006 - PAETEC a Finalist for Corporate Citizenship Award
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FAIRPORT, NY - PAETEC Communications, Inc., today announced that the Business Civic Leadership Center (BCLC), a United States Chamber of Commerce affiliate, has named it as a finalist for a Corporate Citizenship Award. PAETEC is a finalist in the Corporate Stewardship category for a Small/Mid-size Business.
"We're honored to be included as a finalist for this award," said PAETEC Chairman and CEO Arunas A. Chesonis. "The Corporate Stewardship Award is a tremendous barometer for companies which attempt to balance financial success with giving back to our communities."
The Corporate Stewardship Award is the most prestigious award in the field of corporate citizenship and recognizes businesses that integrate economic performance with a sustained contribution to community and social progress. PAETEC is being recognized for a combination of factors that reflect its social contributions and economic performance for the past year.
"The companies that are being recognized in the Corporate Stewardship category tell the real story of American business," said Stephen Jordan, BCLC vice president and executive director. "The best companies succeed because they tailor every aspect of their business to serve their customers, investors, employees, and communities as effectively as possible."
A committee chaired by Harvard University professor Michael Porter will select the 2006 Corporate Stewardship Award winner. The winner will be announced on November 8 at BCLC's 7th annual Corporate Citizenship Awards Dinner at the Andrew W. Mellon Auditorium in Washington, D.C. U.S. Chamber President and CEO Thomas J. Donohue and Secretary of Commerce Carlos Gutierrez will present the award.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Aug 29, 2006 - PAETEC Expands its Network Presence in Tampa
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TAMPA, FL - PAETEC Communications, Inc., announced today that it has expanded its telecommunications network capabilities in the Tampa Bay region by opening a switching facility. The switch will provide primary coverage for all LATA 952 (Tampa), and will also provide network redundancy for PAETEC customers in Ft. Lauderdale/Miami and Orlando, currently served out of PAETEC's Miami switch.
The switch, installed due to PAETEC's tremendous market growth since entering the Tampa market in May 2005, allows for a greater number of Florida businesses to access cost-effective data and voice communications solutions with PAETEC's high-quality network.
"Continued expansion in an important state such as Florida strengthens PAETEC's footprint and provides essential, cost-effective communications options for businesses," said Rich Stalder, PAETEC's sales vice president for the South.
PAETEC's switching facility is located at 515 U.S. Highway 301 South, while its Tampa sales office is located at Airport Executive Center, 2203 N. Lois Avenue. In addition to its Miami switch, PAETEC also has sales offices in Daytona Beach, Ft. Lauderdale, and Orlando.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Aug 14, 2006 - PAETEC AND US LEC TO COMBINE IN $1.3 BILLION TRANSACTION
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PAETEC AND US LEC TO COMBINE IN $1.3 BILLION TRANSACTION
Merger Creates Premier Communications Provider to Enterprise Customers
Companies Expect Annual Cost Savings of $40Million, Adjusted EBITDA of $187 Million and Free Cash Flow of $109 Million
CHARLOTTE, NC and FAIRPORT, NY - August 14, 2006 - US LEC Corp. (NASDAQ: CLEC), a full-service provider of IP, data and voice solutions to businesses and enterprise organizations throughout the Eastern United States, and PAETEC, a privately-held supplier of communications solutions to medium and large businesses and institutions, announced today that they have signed a definitive agreement to merge the two companies.
On a pro forma basis, the company will generate nearly $1 billion in revenue, $187 million in adjusted EBITDA, and $109 million in free cash flow (adjusted EBITDA minus capital expenditures). Cost saving synergies of $25 million have been identified in the first year after closing, and $40 million annually beginning in 2008. The combined company will have over 45,000 enterprise customers, consisting of medium and large businesses and institutions. It will operate in 52 of the top 100Metropolitan Service Areas (MSAs) in the U.S., with a leading presence in the Eastern U.S., as well as several other major markets across the country.
Transaction Terms and Structure
Under the terms of the merger agreement, which was approved unanimously by the boards of directors of both companies, PAETEC and US LEC will become wholly-owned subsidiaries of a new publicly owned holding company ("New PAETEC"). Taking into account outstanding rights to acquire shares in the new holding company in the future, US LEC security holders will own approximately 1/3 and PAETEC security holders will own approximately 2/3 of the new holding company. Upon closing, US LEC shareholders will be entitled to receive one share in the new holding company in exchange for each share of US LEC that they currently own, and PAETEC shareholders will be entitled to receive 1.623 shares in exchange for each share of PAETEC that they currently own. Based on US LEC's closing stock price on August 11, 2006, the total enterprise value of the new company will be approximately $1.3 billion. Upon completion of the transaction, "New PAETEC" expects to be listed on the NASDAQ Stock Market under the ticker "CLEC."
Financing and Capital Structure
US LEC and PAETEC will finance the transaction through a combination of debt and cash on hand. Deutsche Bank Securities Inc., Merrill Lynch& Co. and CIT Group, Inc. have provided a full commitment for $850 million of financing for the transaction, which includes refinancing of both companies' debt, US LEC's Series A Preferred Stock and an unused $50 million revolver.
US LEC has entered into an agreement to repurchase its outstanding Series A Preferred Stock, held by Bain Capital and Thomas H. Lee Partners LP, at a price which reflects a $30 million discount to its accreted value (approximately $268 million as of December 31, 2006, net of discount). Upon closing, this repurchase would eliminate US LEC's Convertible Preferred Stock due April 2010.
"This merger provides US LEC shareholders with significant value and is a transformational
event for our company, creating substantial opportunities for customers and offering
shareholders of both US LEC and PAETEC the ability to participate in the upside potential
of the combined company," said Richard Aab, Chairman of US LEC. "This is an excellent fit
from an operational and financial perspective. An important rationale for our merger is the
cost savings we will be able to capture, as well as additional revenue synergies that have not
yet been factored into our financial projections. With respect to integrating our technology,
both companies' networks are highly adaptive, capital efficient and extremely compatible.
The new PAETEC's customer base will benefit from an enhanced capacity to deliver new,
innovative communications services and a relationship with an even stronger, more
competitive partner."
"We are excited to be combining with US LEC," said Arunas Chesonis, Chairman and Chief
Executive Officer of PAETEC. "Rick and I share a common vision for the industry and are
firm believers in our business models. This strategic combination of highly complementary
operating companies is about scale, scope and growth. The new PAETEC will provide our
combined 45,000 enterprise business customers with some of the newest and most innovative
solutions in the rapidly converging world of voice, data and enhanced services. Both
PAETEC and US LEC are solid operating companies that have proven themselves in a highly
competitive marketplace. We share a 'customer comes first' attitude and are committed to
building and keeping world-class partnerships."
Mr. Chesonis continued, "Given the complementary nature of the two companies' product
and technology portfolios, as well as their geographic footprints, the new PAETEC will be
well positioned to capitalize on significant cross-selling opportunities. I am confident that
we will deliver substantial long-term value to our customers and shareholders."
Achievable Synergies
US LEC and PAETEC expect the proposed transaction to provide substantial benefits for
shareholders of the combined company and significant value creation through identified
highly achievable synergies of $25 million in the first year after closing, and $40 million
annually beginning in 2008. As facilities and operations are consolidated, a substantial
portion of network cost synergies and capital expenditure savings are expected to come from
increased scale and the smooth integration of the companies' state of the art network
operations and IT. Additional savings are expected to result from combining staff functions
and the elimination of a significant amount of SG&A expenses that would be duplicative in
the combined company.
Company Leadership and Headquarters
Upon the close of the transaction, Arunas Chesonis will become Chairman and Chief
Executive Officer of the combined company, and Richard Aab will become Vice Chairman.
Keith Wilson, Chief Financial Officer of PAETEC, will become Chief Financial Officer of
the combined company, and EJ Butler, current PAETEC Chief Operating Officer, will
become Chief Operating Officer. J. Lyle Patrick, Chief Financial Officer of US LEC, will
lead the integration efforts as Executive Vice President of Integration. The combined
company will be headquartered in Fairport, NY, and will maintain US LEC's operations in
Charlotte, NC, with significant operations in the Eastern corridor and a significant presence
in several other markets throughout the country, including Chicago and along the West
Coast.
Approvals
The transaction is subject to approval by a majority of both US LEC and PAETEC
shareholders and the satisfaction of closing conditions and regulatory approvals, including
receipt of financing and repurchase of US LEC's outstanding Preferred Stock, expiration or
termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976 and approvals by state public service commissions in the states
where the combined company will operate. Bain Capital and Thomas H. Lee Partners LP,
which collectively own 24% of US LEC's outstanding shares on a voting basis, and Madison
Dearborn Partners and The Blackstone Group, which collectively own approximately 19.5%
of PAETEC's outstanding shares, have agreed to vote their respective shares in favor of the
transaction. The companies expect that the transaction will close in the fourth quarter of
2006.
Advisors
Deutsche Bank Securities Inc. is acting as financial advisor to US LEC and Skadden, Arps,
Slate, Meagher & Flom LLP is acting as legal advisor. Merrill Lynch & Co. and The
Blackstone Group are acting as financial advisors to PAETEC and Hogan & Hartson LLP is
acting as legal advisor. Deutsche Bank Securities Inc. and Houlihan Lokey Howard & Zukin
provided fairness opinions to US LEC's Board of Directors. Merrill Lynch & Co. and
Capitalink, L.C. provided fairness opinions to PAETEC's Board of Directors.
Conference Call and Webcast at 10:00 AM(ET)Today
PAETEC and US LEC will host a conference call for investors and analysts today, August
14, 2006 at 10:00 AM Eastern Time, to discuss today's announcement, as well as US LEC's
second quarter 2006 earnings. A live broadcast of the conference call will be available online
at www.uslec.com and www.paetec.com. To listen to the live call, visit either web site at
least fifteen minutes early to download, and install any necessary audio software. For those
who cannot listen to the live broadcast, a telephone replay will be available shortly after the
call through the close of business on August 17, 2006 and replay via web cast will be
available through September 14, 2006.
About PAETEC
PAETEC is an innovative supplier of communications solutions to medium and large
businesses and institutions. With the belief that every customer has unique needs, PAETEC
offers personalized solutions that include a comprehensive suite of Voice over Internet
Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than
1,000,000 access line equivalents in service, PAETEC serves more than 17,000 core business
customers across the U.S. by offering a full line of telecommunications and Internet services,
enterprise communications management software, security solutions, and managed services.
The company was the recipient of the 2005 American Business Ethics Award for a mid-size
company, presented by the Society of Financial Services Professionals. PAETEC is
headquartered in Fairport, N.Y. More information about the company can be found by
visiting www.PAETEC.com.
About US LEC
Based in Charlotte, N.C., US LEC is a full-service provider of IP, data and voice solutions to
medium and large businesses and enterprise organizations throughout 16 Eastern states and
the District of Columbia. US LEC offers advanced, IP-based, data and voice services such as
MPLS VPN and Ethernet, as well as comprehensive Dynamic TSM VoIP-enabled services
and features. The company also offers local and long distance services and data services such
as frame relay, Multi-Link Frame Relay and ATM. US LEC provides a broad array of
complementary services, including conferencing, data backup and recovery, data center
services and Web hosting, as well as managed firewall and router services for advanced data
networking. US LEC also offers selected voice services in 27 additional states and provides
enhanced data services, dedicated Internet services and MegaPOP® (local dial-up Internet
access for ISPs) nationwide. For more information about US LEC, visit www.uslec.com.
Safe Harbor
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain
forward-looking statements so long as such information is identified as forward-looking and
is accompanied by meaningful cautionary statements identifying important factors that could
cause actual results to differ materially from those projected in the information. The use of words such as "may", "might", "will", "should", "expect", "plan", "anticipate",
"believe","estimate", "project", "intend", "future", "potential" or "continue", and other
similar expressions are intended to identify forward-looking statements.
All of these forward-looking statements are based on estimates and assumptions by
management that, although we believe them to be reasonable, are inherently uncertain.
Forward-looking statements involve risks and uncertainties, including, but not limited to,
economic, competitive, governmental and technological factors outside of our control, that
may cause our business, industry, strategy or actual results to differ materially from those
expressed or implied in the forward-looking statements.
These risks and uncertainties may include those discussed in US LEC's reports on Form 10-
K, Form 10-Q and Form 8-K on file with the Securities and Exchange Commission (the
"SEC"), and other factors which may not be known to us. Any forward-looking statement
speaks only as of its date. We undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future events or
otherwise, except as required by law.
Additional Information andWhere to Find It
"New PAETEC" will file with the SEC a registration statement that will contain a proxy
statement/prospectus regarding the proposed merger transaction between PAETEC and US
LEC, as well as other relevant documents concerning the proposed transaction. Investors and
security holders of US LEC are urged to read the proxy statement/prospectus for the
transaction and the other relevant documents when they become available because they will
contain important information about "New PAETEC," PAETEC, US LEC and the proposed
merger transaction. The proxy statement/prospectus will be mailed to stockholders of US
LEC prior to their stockholders meeting. Investors and security holders of US LEC may
obtain free copies of the proxy statement/prospectus and other documents filed by "New
PAETEC" with the SEC (when they become available) at the SEC's web site at
www.sec.gov. Free copies of the definitive proxy statement/prospectus and other documents
also may be obtained by writing to PAETEC, One PAETEC Plaza, 600 Willowbrook Office
Park, Fairport, New York 14450, Attention: Investor Relations.
Information regarding the identity of persons who may, under the SEC's rules, be deemed to
be participants in the solicitation of stockholders of US LEC in connection with the proposed
transaction, and their interests in the solicitation, will be set forth in the proxy statement of
US LEC and in the registration statement that will be filed by "New PAETEC" with the SEC.
Contact Information
US LEC Investors:
J. Lyle Patrick
Executive Vice President and Chief Financial Officer, US LEC
704-319-1114
lpatrick@uslec.com
PAETEC Investors:
Keith Wilson
Chief Financial Officer, PAETEC
585-340-2970
keith.wilson@paetec.com
Media:
Steve Frankel / Sharon Goldstein
Both of Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
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Jul 24, 2006 - City's Employer-Assisted Housing Initiative Welcomes PAETEC
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ROCHESTER, NY - Arunas A. Chesonis, Chief Executive Officer of PAETEC Communications, announced today that his company will join the City's Employer Assisted Housing Initiative (EAHI). PAETEC Communications will offer $3,000 to any employee who wishes to buy a home in the southwest quadrant of the city. Through EAHI, the City will match PAETEC's $3,000 benefit dollar for dollar. PAETEC employees can receive a total of $6,000 for down payment and closing costs.
Mayor Robert J. Duffy and Julio Vazquez, Commissioner of the City's Department of Community Development welcomed the announcement and thanked Sen. Hillary Clinton during a news conference held at City Hall to announce PAETEC's participation. Sen. Clinton, who sent a video message congratulating PAETEC, and rolled out the EAHI program with Fannie Mae and the City in September, 2003. "I want to congratulate PAETEC specifically Arunas Chesonis, Mayor Duffy and Fannie Mae. This is an innovative partnership between public and private interests designed to help families purchase their own homes," said Senator Clinton.
The homebuyer assistance program is designed to help stabilize city neighborhoods by increasing city home-ownership opportunities. It also helps employers stabilize their workforce. In addition to PAETEC Communications, Kodak, Xerox, Visiting Nurse Service, Unity Health and the City of Rochester are participating employers. HSBC, M&T and Summit Federal Credit Union participate by providing additional incentives such as attractive mortgage products and reduced fees. The Mayor also thanked City Councilwoman Carolee Conklin, Chair of the Housing and Community Development Committee for her strong support of this program.
Under EAHI, participating employers provide their employees a home-buying benefit of $1,000-$3,000 to purchase a home in the City. The employee must be able to obtain a mortgage, live in the home as their primary residence for five years, invest $1,500 toward the purchase of the home and be a first-time city homebuyer (they can own a home outside the City and decide to move into the City to take advantage of the program).
Mr. Chesonis said, "This housing initiative is a great opportunity for our younger employees to purchase their first home in an area of the city that shows tremendous promise for growth. I am grateful that the City is making it easier for our employees to fulfill their home-ownership dreams."
Mayor Duffy praised PAETEC for their commitment to civic leadership and welcomed PAETEC into the circle of local EAHI participating employers. "I am pleased that PAETEC Communications has become a partner with us. Their participation makes home-ownership in the city attractive for families, something that is critical to Rochester's revitalization."
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Jul 13, 2006 - PAETEC CEO Named Committee Chair of Earth System Initiative
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BOSTON - PAETEC Communications, Inc., announced that Chairman and CEO Arunas A. Chesonis assumed the Chair of the Advisory Committee for the Earth System Initiative (ESI) at the Massachusetts Institute of Technology (MIT) as of July 1. ESI serves as a model for interdisciplinary environmental research as it seeks to further an understanding of the interactions between Earth's physical, chemical, and biological processes. In this role, Mr. Chesonis will help promote the work of ESI beyond the academic community and assist in raising ESI's visibility.
"I'm both excited and humbled to have a role within ESI," said Chesonis. "Through PAETEC, I've had the opportunity to positively impact thousands of employees and customers. The work done by ESI potentially impacts every person on this planet."
In recent years, our society has become more aware of the delicate balance of the Earth system, and has devoted much time and energy to debates over how best to ensure a sustainable future for the planet. ESI is predicated on the notion that, to be meaningful, these debates must be informed by reliable scientific data regarding the evolution and current state of our planet. ESI holds a $40 million portfolio for environmental research and involves approximately 40 faculty members and dozens of graduate students and postdoctoral researchers in its research and education programs.
"We are trying to develop an understanding of how our planet works so we can be better stewards," said Dr. Matthew Gardner, executive director of ESI. "Our goal is to develop scientific understanding that can then be used to inform the policy-making process."
Mr. Chesonis founded PAETEC in May 1998, and led the company to revenues of more than $500 million in 2005. He holds a B.S. in Civil Engineering from MIT, and an MBA from the William E. Simon Graduate School of Business at the University of Rochester.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Jun 30, 2006 - PAETEC Honored by Hotel Association of Los Angeles
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LOS ANGELES - PAETEC Communications, Inc., announced that it has received the 2006 Allied Member Award of Excellence from the Hotel Association of Los Angeles. PAETEC Senior Account Executive Karen Kaluzny accepted the award for her leadership role, as PAETEC's representative, in the Association's growth and development over the past year.
"Receiving this award is an acknowledgement of PAETEC's commitment to work with our fellow members in developing solutions which assist the hospitality industry," said Executive Vice President Jeff Burke.
The Hotel Association is the leading trade association of the hotel and lodging industry in Los Angeles County. Its membership is a cross-section of the lodging industry, including professional members, who are owners and managers of both large and smaller lodging properties, and allied members, who are suppliers of products and services used by hotels.
"PAETEC has been a strong and supportive Allied member resource, as the Hotel Association has expanded our leadership role on behalf of the Los Angeles area hotel and lodging industry," said Association Executive Director Mike Pfeiffer. "We are proud to recognize PAETEC, and Karen Kaluzny, with this award."
The Association honored Kaluzny and PAETEC on June 21 at its annual Gala dinner event, held this year at the Omni Hotel in Downtown Los Angeles. PAETEC joined the Association in 2004, when the two organizations signed an agreement for PAETEC to provide voice and data services to Association members.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Jun 20, 2006 - Securities Industry Association Selects PAETEC for IP Voice Trading Services
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NEW YORK, NY - The Securities Industry Association (SIA), an organization bringing together the shared interests of nearly 600 securities firms to accomplish common goals, has selected PAETEC Communications, Inc., to provide IP-based trader voice services to global financial markets. PAETEC's TRADETEC services will be provided to major financial centers via its premier SECURETEC Private-IP MPLS network.
SIA began researching Internet Protocol (IP) voice trading services over a year ago when it issued a formal RFI, reviewed formal bids, and conducted extensive field testing. IP voice trading is attractive for several reasons, including increased operational efficiencies, reduced operational costs, and an inherent disaster recovery capability. The new SIA - PAETEC partnership embraces this concept and will initially focus on IP delivery for Automatic Ring Down, Manual Ring Down, and Hoot & Holler services.
"SIA is pleased to announce our relationship with PAETEC," said SIA President Marc Lackritz. "Financial organizations looking for global IP trading services can now be assured of an innovative, secure, and cost-effective solution."
"We are proud PAETEC has been selected to provide the trader voice services that help fuel the economy," said PAETEC Chairman and Chief Executive Officer Arunas Chesonis. "PAETEC's unique services, robust network, and unmatched support will provide SIA member firms with a superior offering."
Implementation of this affinity agreement is set to commence shortly and all SIA member firms are able to contract for these services.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP)) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
About SIA
The Securities Industry Association brings together the shared interests of more than 600 securities firms to accomplish common goals. SIA's primary mission is to build and maintain public trust and confidence in the securities markets. SIA members (including investment banks, broker-dealers, and mutual fund companies) are active in all U.S. and foreign markets and in all phases of corporate and public finance. According to the Bureau of Labor Statistics, the U.S. securities industry employs nearly 800,000 individuals, and its personnel manage the accounts of nearly 93-million investors directly and indirectly through corporate, thrift, and pension plans. In 2005, the industry generated an estimated $322.4 billion in domestic revenue and an estimated $474 billion in global revenues. (More information about SIA is available at: www.sia.com.)
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Jun 14, 2006 - PAETEC Receives Frost and Sullivan Business Development Strategy Award
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FAIRPORT, NY - PAETEC Communications, Inc., announced that it has been selected as the 2006 recipient of Frost & Sullivan's Award for Business Development Strategy Leadership within the Financial Services Industry for its TRADETEC product. The Award recognizes the company's ability to best perceive commercial business needs, develop products and/or services that meet business needs, successfully introduce products or services to the industry, and identify new market segments to expand the existing customer base.
To select the recipient of this Award, Frost & Sullivan's analyst team tracks all the major participants in the industry, paying close attention to their business development efforts. This process includes interviews with the market participants, customers, and suppliers, along with extensive secondary and technology research. The companies' business development efforts are then analyzed based on the number of new customers, new segments, and commitment to business expansion.
"Receiving this award reaffirms PAETEC's philosophy of working with our customers to develop the products they need," said PAETEC Chief Marketing and Training Officer Jack Baron. "The fact that an organization such as Frost & Sullivan has validated our strategy will push us that much harder to provide the personalized solutions that define PAETEC."
PAETEC's business development strategy revolves around identifying and addressing operational/business process challenges for financial firms. While the company markets both traditional and IP-based voice and data services, its lead offerings include business applications that are designed to help financial institutions enhance productivity as well as improve other back-office operations.
Some of PAETEC's leading offers in the financial segment include:
- SECURETEC MPLS-based VPN w/ QoS
- IPATH Converged IPT1 (dynamic bandwidth), and hosted VoIP services
- Network Security and Disaster Recovery Solutions
- Pinnacle Communications Management Software
- Integrated Voice and Data services
- Audio, Video, and Web Conferencing Services
- Customer Premises Equipment Management
"PAETEC's business development strategy sets it apart from several of its rivals in the financial services vertical," said Frost & Sullivan research analyst Imran Khan. "The company's "business partner" philosophy helps PAETEC gain a deeper understanding of its client's business/operational challenges and enables it to develop solutions that address those challenges."
For more information about Frost & Sullivan Awards, visit http://www.awards.frost.com.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP)) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Jun 12, 2006 - PAETEC Completes $400 Million Credit Facility
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FAIRPORT, NY - PAETEC Corp. today announced that is has closed on a $400 million Credit Facility. The facility was arranged by Merrill Lynch, CIT Capital Securities LLC, CIBC, Inc., and Deutsche Bank Securities, Inc., for PAETEC. The deal includes $25 million in revolving credit, a $275 million first lien term loan, and a $100 million second lien term loan.
Proceeds from the facilities will allow PAETEC to refinance existing debt and repurchase preferred shares and certain common shares with governance and liquidity rights from the company's investors. The transaction eliminates PAETEC's Series A preferred stock and Class B common stock, thereby resulting in a single outstanding class of common stock for the company.
"We found strong support in the credit market for this transaction," said PAETEC Chief Financial Officer Keith Wilson. "This transaction is important for both PAETEC and its shareholders as it provides for a significantly streamlined corporate governance structure."
In addition to improved corporate governance, the transaction provides strategic flexibility, and more than doubles the percentage of ownership for all common shareholders.
"Operationally, the company has never been stronger," Wilson said. "The changing telecommunications landscape has made PAETEC the alternative choice for medium and large enterprise customers."
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP)) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Jun 07, 2006 - PAETEC Receives Marketer of the Year Award From RAMA
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FAIRPORT, NY - PAETEC Communications, Inc., announced today that it has received the 2006 Marketer of the Year Award from the Rochester chapter of the American Marketing Association (RAMA).
"We are thrilled to be recognized by RAMA for this prestigious award," said PAETEC Chief Marketing and Training Officer Jack Baron. "PAETEC's efforts reflect a comprehensive strategy implemented by a truly professional team of marketers, designers, product developers, and trainers within PAETEC."
The Marketer of the Year Award is presented to an organization that clearly and consistently demonstrates marketing excellence. From its inception in 1998, PAETEC was recognized as a provider of traditional voice products such as local, long distance, and toll-free services to medium- and large-sized businesses across the U.S. The business environment has since changed radically and underwent a rapid metamorphosis. To meet this evolution towards an Internet Protocol (IP)- and data-based industry, PAETEC successfully implemented an ambitious plan to expand its service portfolio to include sophisticated data and security services, and increase awareness of this transition within our customer and employee bases. PAETEC achieved this goal by launching complementary integrated campaigns targeted to both audiences that included Customer Advisory Boards, internal and external newsletters, updated intranet and Internet sites, Webinars, employee training and testing, and more.
"Congratulations to PAETEC for winning the Rochester Marketer of the Year Award for 2006," said Manish Puri, president of RAMA. "PAETEC has created a strong relationship with its customers and has done an incredible job of listening to them continuously and to incorporate their suggestions in its product and service offerings. PAETEC has strongly embodied customer evangelism in its business philosophy."
PAETEC was honored at a lunchtime ceremony held at the Rochester Riverside Convention Center. The judging was conducted by a group of independent marketing experts from around the country. Other award winners included a division of Eastman Kodak Co. for the Turn Around/Start-up Marketer Award, and the Rochester Museum and Science Center for the Non-Profit Marketer of the Year.
About PAETEC Communications
PAETEC Communications, Inc., is an innovative supplier of communications solutions to medium and large businesses and institutions. With the belief that every customer has unique needs, PAETEC offers personalized solutions that include a comprehensive suite of Voice over Internet Protocol (VoIP)) services delivered over our Private-IP MPLS network. With more than 1,000,000 access line equivalents in service, PAETEC serves more than 15,000 core business customers across the U.S. by offering a full line of telecommunications and Internet services, enterprise communications management software, security solutions, and managed services. The company was the recipient of the 2005 American Business Ethics Award for a mid-size company, presented by the Society of Financial Services Professionals. PAETEC is headquartered in Fairport, N.Y. More information about the company can be found by visiting www.paetec.com.
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Jun 05, 2006 - PAETEC Selects Lucent Technologies' New 'Smart' Call Processing Service