Integra Telecom, Inc. Closes Eschelon Telecom, Inc. Acquisition

The combined company is one of the largest competitive localexchange carriers (CLECs) in the nation enjoying pro-forma 2007revenues of more than $700 million and more than $240 million inpro-forma 2007 EBITDA, including anticipated synergies.

"We're excited to bring together two well run companies which willcreate a substantial, well positioned, customer focused alternative tothe large monopoly carriers," said Dudley Slater, CEO of IntegraTelecom. "I want to formally welcome the employees and customers ofEschelon to Integra. Eschelon customers can look forward to Integrainvesting in additional local service professionals and products,enhancing their service experience."

Integra attributes its high customer loyalty and customersatisfaction ratings to its highly responsive, decentralized businessmodel which positions senior leadership, customer service centers andtechnicians in the heart of their customers' communities. The combinedcompany will offer an expanded product set, including: local andlong-distance calling, high-speed Internet, DSL, voice messaging, andtoll-free services, available on Integra's 4,700-mile high-speed longhaul network.

"Both companies have an excellent reputation of meeting the needsof their customers," added Richard A. Smith, former president and CEOfor Eschelon. "The market position and financial strength resultingfrom this combination well positions the customers and employees ofboth companies for the future." Richard Smith has agreed to joinIntegra Telecom's board of directors.

Integra and Eschelon derive over 80 percent of their revenues fromoverlapping service areas making the business combination compellingand straight forward. Much of Eschelon's traffic, which was previouslyrouted over leased facilities from other carriers, will now be routedover Integra's extensive metropolitan area and intercity fibernetworks.

The combined company will be headquartered in Portland, Ore.

About Integra Telecom, Inc.

Integra Telecom, Inc. provides voice, data and Internetcommunications to thousands of business and carrier customers ineleven Western states, including: Arizona, California, Idaho,Minnesota, North Dakota, Oregon, Utah and Washington. The company ownsand operates a best-in-class fiber-optic network comprised ofmetropolitan access networks, a nationally acclaimed tier one Internetand data network and a 4,700-mile high-speed long haul network. Thecompany enjoys some of the highest customer loyalty and customersatisfaction ratings in the telecommunications industry. Primaryequity investors in the company include Banc of America CapitalInvestors, Boston Ventures and Nautic Equity Partners. Integra Telecomand Electric Lightwave are registered trademarks of Integra Telecom,Inc. For more information, visit .