Eschelon Telecom, Inc. Announces Completion of Acquisition by Integra Telecom, I

Integra financed the total purchase price of approximately $710million, including the repayment of approximately $144 million of theCompany's debt, through approximately $1.2 billion in new capital. Thenew capital includes: i) senior secured debt facilities placed byDeutsche Bank Securities and Morgan Stanley Senior Funding, Inc. asJoint Lead Arrangers and CIBC as Co-Agent, and ii) senior notes placedby Deutsche Bank Securities with CIBC acting as lead manager.

"The combination of Integra and Eschelon represents the bestcombination of well run companies in the CLEC space that I canimagine," said Richard A. Smith, former president and CEO of EschelonTelecom. "This transaction will increase product offerings forcustomers, support both sets of shareowners, and generate increasedcareer opportunities for associates of the combined company."

Richard A. Smith has served as Eschelon's president since April,2000, and chief executive officer since July of 2003. Effectiveimmediately, Dudley Slater, chief executive officer of Integra Telecomwill take control of the combined organization. Smith has accepted aposition on Integra's Board of Directors.

Smith added, "It will be a pleasure to watch, as a board member,what will be accomplished by the Integra and Eschelon team over thenext several years - I am looking forward to it!"

Eschelon customers do not need to do anything differently as aresult of the transaction. All active contracts and customer termagreements will remain in effect and will be honored by Integra.

About Eschelon Telecom, Inc.

Eschelon Telecom, Inc. is a facilities-based competitivecommunications services provider of voice and data services andbusiness telephone systems in 53 markets in the western United States.Headquartered in Minneapolis, Minnesota, the company currently employsapproximately 1,470 telecommunications/Internet professionals, servesover 65,000 business customers and has approximately 655,000 accesslines in service throughout its markets in Minnesota, Arizona, Utah,Washington, Oregon, Colorado, Nevada, Montana and California. For moreinformation, please visit our web site at

Forward Looking Statements

This announcement contains forward-looking statements within themeaning of Section 27A of the Securities Act of 1933, as amended, andSection 21E of the Securities Exchange Act of 1934, as amended. Theforward-looking statements are based on Eschelon Telecom's currentintent, belief and expectations. These statements are not guaranteesof future performance and are subject to certain risks anduncertainties that are difficult to predict. Actual results may differmaterially from these forward-looking statements because of the risksthat may be described in the Eschelon Telecom, Inc.'s filings with theSecurities and Exchange Commission. Existing and prospective investorsare cautioned not to place undue reliance on these forward-lookingstatements, which speak only as of today's date. Eschelon Telecom,Inc. undertakes no obligation to update or revise the informationcontained in this announcement, whether as a result of newinformation, future events or circumstances or otherwise.