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NuVox Communications Announces 2001 Results

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NuVox Communications Announces 2001 Results; Revenues Increased 487 percent and
On-Net Access Lines in Service Grew by 294%

Business Editors/High Tech Writers

ST. LOUIS--(BUSINESS WIRE)--March 26, 2002--NuVox Communications today
announced continuing strong operating and financial results, reporting triple
digit growth in both revenues and on-net access lines in service for the year
ended December 31, 2001.
NuVox Communications provides reliable, integrated local, long distance,
Internet and broadband data communications services to more than 13,000 on-net
business customers in 30 markets in 13 Southeastern and Midwestern states.
NuVox entered 2002 with annualized revenues of $108 million (a 130 percent
year-to-year increase), more than $110 million of available capital, $568
million in total assets and 29 of its 30 markets reporting positive gross
margins. Annualized core broadband revenues increased 249 percent from $25.7
million and 55 percent of total revenues in December 2000 to $89.8 million and
84 percent of total revenues in December 2001. Core broadband revenues include
revenues from NuVox's bundled local, long distance, Internet and broadband data
communications services.
2001 revenues totaled $83 million, a 487 percent increase over 2000
revenues of $14.1 million. Revenues attributable to core broadband products
grew 472 percent to $61.2 million in 2001 from $10.7 million during 2000. Gross
margins for the year were 22 percent versus 16 percent in 2000. On-net access
lines in service increased 294 percent from 34,629 lӪines at December 31, 2000
to 136,456 lines at the end of 2001. Total monthly access line churn decreased
from 2 percent in the first quarter of 2001 to 1 percent in the fourth quarter.
Adjusted EBITDA losses declined from 350 percent of revenues in 2000 to 100
percent of revenues in 2001. NuVox expects during 2002 to more than double the
2001 levels of revenue and on-net access lines installed with continuing
improvements in margins to achieve positive EBITDA in the fourth quarter of
2002.
"We believe the level of growth and improving results that NuVox has been
able to achieve during 2001 despite the challenging economic and operating
environment confronting emerging telecommunications companies validates our
business strategy of delivering reliable bundled product offerings for business
customers with superior customer service and support," said David Solomon,
Chairman and Chief Executive Officer. "We continue to see increasing demand by
our targeted customer base for NuVox's core bundled voice and data products and
for other innovative solutions, such as unified messaging, remote access and
Web page hosting and design, all of which enable our customers to better manage
their businesses. The entire NuVox team is committed to superior, best-in-class
execution in sales, provisioning and customer service and support and to
continuously improving results to achieve our goals of becoming EBITDA positive
by the fourth quarter of 2002 and attaining positive free cash flow by the end
of 2003."

During 2001, NuVox

--
Secured $87 million of additional equity financing,
--
Increased total revenues 487 percent,
--
Increased core broadband revenues 472 percent,
--
Increased on-net access lines in service 294 percent,
--
Increased average lines installed per day 152 percent from 269

in December 2000 to 678 in December 2001,

-- Decreased its median installation interval 21 percent from 43 days in
December 2000 to 34 days in December 2001,

-- Decreased capital spending by $6.9 million or 7.3 percent below 2000,

-- Achieved reductions of monthly access line churn from 2 percent in Q1'01
to 1 percent in Q4'01,

-- Increased sales force 60 percent from 198 in December 2000 to 316 in
December 2001,

--
Increased lines sold 119 percent,
--
Increased gross margins from 13 percent in Q4'00 to 29 percent

in Q4'01, with 29 of 30 markets reporting positive gross margins at year end
2001, and

-- Achieved reductions of adjusted EBITDA losses from 350 percent of 2000
revenues to 100 percent of 2001 revenues.

Fourth quarter 2001 revenues were $26.1 million, a 225 percent increase
over fourth quarter 2000 revenues of $8.0 million and a 12 percent increase
from third quarter 2001 revenue of $23.3 million. Fourth quarter 2001 revenues
from NuVox's core broadband products totaled $21.2 million, 324 percent more
than the $5 million of broadband revenues recorded in the fourth quarter of
2000 and 20 percent more than the $17.7 million reported in the third quarter
of 2001. Core broadband revenues accounted for 81 percent of total revenues in
the fourth quarter 2001 versus 62 percent in the same period in 2000. Gross
margins increased to 29 percent in the fourth quarter 2001 versus 26 percent in
the third quarter 2001 and 13 percent in the fourth quarter of 2000.
Selling, general and administrative expenses were 98 percent of revenue in
the fourth quarter of 2001 versus 272 percent of revenue in the same period of
2000. On-net access lines installed during the fourth quarter of 2001 increased
126 percent to 30,985 from 13,736 in the same period of the prior year.
"During 2001, with all of our 30 networks operational, we assembled an
experienced local sales and customer support presence in each market that is
poised to build upon our strong performance in 2001," said G. Michael Cassity,
President and Chief Operating Officer of NuVox. "We achieved this substantial
growth during 2001 without any increase in our total employee base and we are
continuing to aggressively control and manage our operating, SG&A and capital
expenditures."
NuVox has raised $550 million of equity capital for its operations
(including $87 million raised in September 2001) and entered 2002 with $47
million of cash, $163.9 million of senior debt and $63.8 million of undrawn
financing under its senior debt facility, providing total available capital of
$110.8 million and a net debt-to-invested equity ratio of 21.25 percent. "In an
environment when funding, capital structure and capital efficiency reign
supreme, the continued support of our investors and lenders during 2001 has
been a strong endorsement of our business strategy and management team," said
Michael E. Gibson, Senior Vice President and Chief Financial Officer of NuVox.

NUVOX COMMUNICATIONS

Company Overview

Strategic Focus: Provider of superior broadband communications services and
customer care to small and medium-sized businesses

Market Coverage: In operation in 30 markets in 13 contiguous midwestern and
southeastern states

Data Network: Inter-city ATM network interconnecting all 30 markets

Dec. 31, 2001 Dec. 31, 2000 % Change
------------- ------------- --------
Addressable Total Lines: 22.67 million 21.19 million + 7%
Addressable Business Lines: 6.95 million 6.49 million + 7%
Total Access Lines in
Service: 153,363 59,871 +156%
On-Net Access Lines in
Service: 136,456 34,629 +294%
Total Customers Served: 35,763 29,993 + 19%
Customers Served On-Net: 11,085 3,990 +178%
Annualized December
Revenues: $107.6 million $46.8 million +130%
On-net December Revenues
per Broadband Customer: $775 $817 -5%

December gross margin % 31% 11% +182%
Voice Switches Installed: 14 14 --
ATM Switches Installed: 30 30 --
Central Office Collocations
in Service: 205 243 -16%
Sales Employees: 316 198 +50%
Total Employees: 1,107 1,133 -2%

Dec. 31, 2001 Sept. 30, 2001 % Change
------------- -------------- -------

Addressable Total Lines: 22.67 million 22.30 million +1.6%
Addressable Business
Lines: 6.95 million 6.84 million +1.6%
Total Access Lines in
Service: 153,363 128,855 +19%
On-Net Access Lines in
Service: 136,456 108,584 +26%
Total Customers Served: 35,763 31,792 +12%
Customers Served On-Net: 11,085 8,295 +34%
Annualized Monthly
Revenues: $107.6 million $95.2 million +13%
On-net Monthly Revenues per
Broadband Customer: $775 $680 +14%
Monthly gross margin % 31% 26% +21%
Voice Switches Installed: 14 14
ATM Switches Installed: 30 30
Central Office Collocations
in Service: 205 213 - 4%
Sales Employees: 316 203 +46%
Total Employees: 1,107 1,047 + 6%

About NuVox Communications

NuVox Communications is the integrated communications provider of choice,
delivering superior broadband services and customer care to business customers
in 30 markets in 13 Southeast and Midwest states. NuVox offers businesses and
other end-users advanced integrated voice, data and Internet products and
services. The Company provides dedicated and dial-up high-speed Internet
access; Web page design, development and hosting; "traditional" local and long
distance telephone services; and unified voice, e-mail, and fax messaging as
well as advanced data services.
NuVox's growing product portfolio also includes LAN and WAN management,
virtual private networks, audio conferencing and remote access. NuVox provides
its integrated voice and data services to over 13,000 on-net customers with
more than 160,000 on-net access lines in service. NuVox has raised $775 million
of capital for its operations and entered 2002 with $108 million of annualized
revenues. NuVox, Inc. is privately held, and its headquarters are located at
16090 Swingley Ridge Road, Suite 500, in Chesterfield, MO 63017. The NuVox
Communications Web site URL is www.nuvox.com.

Forward-Looking Statements

Some of the statements contained in this press release that are not
historical facts are "forward-looking statements" within the meaning of Section
27A of the Securities Act of 1933, as amended, and are subject to known and
unknown risks, uncertainties and other factors that could cause actual results
to differ materially from those contemplated by these statements. These
forward-looking statements are based on various factors and have been derived
using numerous assumptions. These forward-looking statements generally can be
identified by the use of forward-looking terminology such as "will," "may,"
"should," "believe," "intend," "expect," "anticipate," "project," "estimate" or
"predict" or the negative thereof or other variations thereon or comparable
terminology. NuVox wishes to caution readers of this press release that these
forward-looking statements regarding matters that are not historical facts are
only our predictions, assumptions and estimates regarding future events and
circumstances. Accordingly, NuVox can give no assurance that these predictions
and estimates will be realized. Actual events or results may differ materially
as a result of risks facing us, including risks regarding the continued
development of our business and the markets for our services and products and
the continued availability and sufficiency of our capital.

--30--PS/ch*

CONTACT: NuVox Communications
Myron Hosea, 864/331-8073; mhosea@nuvox.com