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NuVox Communications Reports 2002 Operating and Financial Results

Swamp Fox

NuVox Communications Reports 2002 Operating and Financial Results

Business Editors/High-Tech Writers

ST. LOUIS--(BUSINESS WIRE)--March 12, 2003--

Company Increased Broadband Revenues by 95 Percent; Secured $93.5 Million of
Incremental Capital and Reduced Debt by $123.4 Million

NuVox Communications, a rapidly growing, facilities-based broadband
services provider, today announced continuing strong operating and financial
results for the year ended December 31, 2002.
The company reported impressive year-over-year revenue growth and
improvement in operating results. Total revenues for 2002 were $134 million, a
62 percent year-over-year increase. NuVox's broadband revenues increased 95
percent to $119 million. Broadband revenues include revenues from NuVox's
Broadband Bundle service offering, an integrated local, long distance and
high-speed Internet access product, and its broadband data communications
services.
During the second half of the year, NuVox raised $93.5 million of
incremental capital, including $81 million of equity and $12.5 million of
additional debt financing, and reduced its debt to a present value of $40.5
million. NuVox also refocused its core business strategy to conserve cash and
amended its senior credit facility to eliminate cash debt service obligations
through September 30, 2004. With $47.3 million in cash, NuVox entered 2003 with
a fully funded business plan and surplus capital available for strategic growth
opportunities.
"NuVox's team of dedicated professionals was able to post solid high-growth
results despite the extraordinarily adverse economic and telecom industry
conditions that prevailed throughout 2002," said David Solomon, chairman and
chief executive officer. "This impressive achievement enabled NuVox to attract
meaningful amounts of additional capital and significantly strengthen its
balance sheet. It also confirms the strong demand by small and medium-sized
businesses for our cost-effective integrated voice and data services."
Other significant milestones for NuVox during 2002 included the
installation of more than 125,000 lines, bringing total on-net access lines in
service at December 31 to 226,946 and total on-net customers served to 16,631.
NuVox's operations turned EBITDA positive before corporate overhead in June
2002 and began generating positive free cash flow before corporate overhead in
September 2002.
"2002 was a break-through year for our broadband business," said Mike
Cassity, president and chief operating officer. "Despite the many challenges
facing our industry, we were able to successfully meet the demand of a growing
number of small to medium-sized business customers for our core products -
integrated local and long distance voice and high-speed data transmission and
Internet access services. We divested our resale operations and customer
premise equipment businesses in order to focus our capital and human resources
on providing our customers with the superior broadband services and customer
care their businesses require."
NuVox also announced that, as a result of its strong operating results,
NuVox has decided to expand its operations in Oklahoma and Ohio, including
increasing its direct sales force in Oklahoma City and expanding the geographic
scope of its operations in Northeast Ohio to include both the Akron and Canton
metropolitan areas.
"We are pleased that the results we have achieved in Oklahoma and Ohio have
been such that we can justify our additional investments in these markets,"
said Chris Benyo, senior vice president - sales and marketing. "We expect to
continue to grow our business as justified by the demand by business customers
for our integrated voice and data products."

Key 2002 improvements over 2001 include:

--
62 percent increase in total revenue - $83 million to $134.1 million
--
95 percent increase in broadband revenue - $61.3 million to $119.4 million
--
66 percent increase in on-net lines in service - 136,456 to 226,946
--
60 percent increase in on-net customers - 10,368 to 16,631

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 17,000
on-net customers with more than 230,000 on-net access lines in service. 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 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 and uncertainties facing us, including risks and
uncertainties regarding the continued development of our business and the
markets for our services and products, the negative impacts of the downturn in
the economy, the significant regulatory uncertainties facing the competitive
telecommunications industry and the continued availability and sufficiency of
our capital.

--30--KT/na*

CONTACT: NuVox Communication
Janet Wendel, 636/537-5712
jwendel@nuvox.com

KEYWORD: TENNESSEE SOUTH CAROLINA OKLAHOMA OHIO NORTH CAROLINA
MISSOURI KENTUCKY KANSAS INDIANA ILLINOIS GEORGIA FLORIDA ARKANSAS
INDUSTRY KEYWORD: TELECOMMUNICATIONS NETWORKING E-COMMERCE
INTERNET EARNINGS
SOURCE: NuVox Communications