PAETEC to Acquire Allworx

PAETEC Holding Corp. (NASDAQ GS: PAET) announced today that it has signed a definitive agreement to acquire Allworx Corp., a privately held company, in a $25 million all-cash acquisition. Allworx develops, designs, markets, and sells a complete phone and network system. Upon the closing of this acquisition, PAETEC will add a subsidiary with manufacturing, distribution, and software and digital hardware engineering services that are designed to benefit small and medium-sized businesses. The transaction is subject to customary closing conditions and is expected to be completed in October 2007.

PEATEC nominated for the Corporate Stewardship Award

The U.S. Chamber of Commerce’s Business Civic Leadership Center (BCLC) today named PAETEC, headquartered in Fairport, NY, as a finalist for a Corporate Citizenship Award in the category of Corporate Stewardship, Small/Midsize Business.

“The businesses being nominated for the Corporate Stewardship Award are models of business citizenship at its finest,” said U.S. Chamber President and CEO Thomas J. Donohue. “PAETEC has earned this recognition for its dedication and attention to the needs of its customers, investors, employees, and community.”

PAETEC Q2 2007

• Revenue of $274.5 million, which represented an 89% increase over second quarter 2006 revenue of $145.6 million;
• Adjusted EBITDA* of $52.5 million, which represented a 109% increase over second quarter 2006 adjusted EBITDA of $25.1 million;
• Net income of $6.0 million compared to a $<5.8> million net loss in second quarter 2006;
• Free cash flow* of $31.5 million, which represented the 18th consecutive quarter in which PAETEC Holding or its predecessor generated positive free cash flow;
• Ended the quarter with a cash balance of $84.5 million;
• An increase of 141% in the number of access line equivalents in service, from 1.10 million as of June 30, 2006 to 2.65 million as of June 30, 2007; and
• Successful completion on July 10, 2007 of amendments to PAETEC’s existing bank credit facility and a $300 million senior note offering priced at the end of the quarter.

PAETEC Offers Data Backup, Recovery, Dedicated Servers

PAETEC Holding Corp. (NASDAQ GS: PAET) today announced the availability of its Data Backup and Recovery, Dedicated Server, and Web Hosting solutions. Hardware and software failures, human error, viruses and theft, environmental disasters. Business operations can be disrupted in numerous ways; having a continuity plan in place prior to when disaster strikes can save your business.

PAETEC Launches MPLS, IP Ethernet Service

PAETEC Holding Corp. (NASDAQ: PAET) today announced the availability of its Ethernet Local Loop transport service to support MPLS and Internet services. Ethernet access provides built-in scalability without the need to order additional facilities when more bandwidth is required.

PAETEC Q1 2007 Results

PAETEC  announced 2007 first quarter financial and operating results. As previously announced, PAETEC Corp. completed its merger with US LEC Corp. on February 28, 2007, creating one of the largest competitive telecommunications providers in the United States.

Mpower Agrees to Sell Assets and Customers to McLeodUSA

Mpower has entered into a definitive agreement to sell certain of its assets and its customer accounts in the Chicago area to McLeodUSA Incorporated. The sale will enable Mpower and its affiliates that do business as TelePacific ommunications (TelePacific), to focus solely on serving business enterprises throughout the Western region.

PAETEC Promotes Three Executives

PAETEC Holding Corp. today announced the promotions of three executives, including the addition of two new members to PAETEC’s leadership team, by promoting James M. Hvisdas to Executive Vice President and Doug Derstine and Kevin Errity to Senior Vice President. Mr. Hvisdas is located in Orlando, Fla., Mr. Derstine is located in Mt. Laurel, N.J., and Mr. Errity is located in New York City.

US LEC PAETEC merger complete

 US LEC Corp. (NASDAQ: CLEC) and privately owned PAETEC Corp. today announced the completion of their planned merger transaction, which is effective today. The combined company will conduct business as PAETEC Holding Corp. (PAETEC), and its common stock will trade beginning tomorrow on the NASDAQ Global Select Market under the ticker symbol “PAET.”