California and Nevada’s Business Communications Company

2 California and Nevada’s Communications Company TelePacific Communications is the largest competitor to AT&T, Verizon and Emparq in its markets 930,000+ lines in service 75,000 business customers Organic growth: TelePacific is the fastest growing competitive telecom service provider headquartered in California

3 A management team that supports you TelePacific is led by Dick Jalkut and an experienced and proven executive management team. –With 30 years of industry experience TelePacific’s CEO Dick Jalkut has managed one of this country’s largest Bell Operating Companies with more than 87,000 employees. Ken Bisnoff, SVP Strategic Opportunities –Responsible for the Telepartner Channel and all major business development activities –AT&T, TCG, Winstar, CallManage, Inc. Mike James, SVP Customer Experience –Customer Care, Technical Support, Credit and Collections, Retention, Account Management –Cable and Wireless, Hong Kong Telecom, Optus Communications, Bell South Mobility, Sprint PCS, Nortel

4 A company that values you The agent channel is responsible for more than 40% of TelePacific’s revenues. TelePacific allocates 50% of all it's resources to the agent channel. TelePacific is not management heavy. If something needs to get done it can get done quickly. TelePacific believes in providing Best of Class tools for our agents i.e. the agent Extranet, Telepartner Central, the proposal model.

5 Providing an outstanding Customer Experience We provide a level of service to the businesses that is typically only given to the largest corporate accounts. Customer Rights: It is expected that we will take the time to understand the needs of our customers and future customers. It is expected that we will deal with individuals with respect and dignity. Our customers expect a warm reception and appropriate help whenever it is needed from whomever they contact. It is expected that we will meet our commitment to resolve issues efficiently and follow-up to ensure the highest level of satisfaction.

6 Leadership and Process Management lead to results All calls into customer care are answered in 30 seconds or less 95% of the time by a person that can answer and respond to your questions. TelePacific resolves 93% of all calls into customer care on the first call. With a team dedicated to accurate invoicing, TelePacific boasts a 99% invoice accuracy. 97% customer satisfaction. More than 2,000 customers are surveyed monthly by Receivable Management Services, a Citigroup Company. Ongoing display and measurement of important service metrics provide TelePacific employees the information needed to address areas that require immediate attention.

7 Customers benefit from industry leading network technology standards TelePacific provides its services on TelePacific owned switches and network infrastructure. Local switching, provides unique wide area networking applications and highly cost-effective programs for our multi-location customers. Cisco Powered Data Network –Fully meshed IP architecture with OC-level backbone –Multiple OC-level connections to UUNet & Wiltel –Dynamically Routed using BGP-4 –Aggressive SLAs 15 switches 915 miles metro fiber1,412 miles statewide fiber25,000 miles fiber strands 331 collocations514 wire centers

8 Six Companies Rolled into One Marked entrance into Central Valley $31M in revenues Positive EBITDA from day Pac-West Telecomm SME Business 2005 $25M in assets 1,200 customers 2 Lucent 5ESSs ATG Bay Area 2002 TelePacific Communications ,000+ customers 384,000+ access lines $190.5M in revenues Mpower Communications 2006 Completes central California footprint $23M in revenues 5,000 customers 61,000 ALEs 2 switches Arrival Communications 2007 SONET fiber network with fully-survivable metropolitan fiber rings in six markets 128 on-net fiber-lit commercial buildings Wholesale line of business Mpower Acquires ICG of California 2003

9 Strong growth and high returns Highlights TelePacific is the largest competitor to AT&T, Verizon and Embarq in its markets Recently named one of LA’s fastest growing companies by the Los Angeles Business Journal Over 100 years of combined executive leadership Company’s debt rated by S&P and Moody’s Board or Directors includes former Governor Pete Wilson TelePacific has more than 1200 employees across 18 regional call centers located in CA/NV

10 Full service CLEC: Local / Long Distance / Data & Internet Over 75,000 customers with 930,000+ lines in service Serving business in California and Nevada and in Chicago as Mpower of Illinois Facilities based Privately owned & funded Record customer care metrics Investments led by Investcorp, GE Capital and Clarity Partners Timely and accurate commissions Great provisioning