ESCH Eschelon Telecom (MM)

Eschelon Telecom, Inc., (NASDAQ:ESCH) a leading provider of integrated communications services to small and medium sized businesses in the western United States, today announced plans to add Voice Over Internet Protocol (VoIP) product capabilities to its network. The new IP applications will leverage the existing network infrastructure from Nortel and Cisco Systems, and will be available in addition to existing TDM products. �We have always maintained that VoIP products can work very well for some customers,� stated Richard A. Smith, Eschelon�s President and CEO. �At the same time, there are customers with applications that do not work well over this technology. By offering both technologies, we will be able to offer the best solution to fit the customer�s needs, rather than forcing the customer into the only technology we offer.� The VoIP technology will add a �variable bandwidth� product to Eschelon�s product set. This means customers will be able to use the entire 1.5Mb of available bandwidth on their T-1 circuit for dedicated Internet traffic when no voice calls are in progress. The first Eschelon markets to add the VoIP product capabilities will be Minneapolis, Denver and Phoenix. The network in these markets will be available for customer installations in the third quarter, 2007. Networks in the remainder of the company�s major markets will be ready for customers by the end of the year. �We will be able to add these VoIP capabilities within our previously-announced network expansion capital plans,� continued Smith. �The technology and economics of VoIP have evolved to the point that it now makes sense for our company and customers.� About Eschelon Telecom, Inc. Eschelon Telecom, Inc. is a facilities-based competitive communications services provider of voice and data services and business telephone systems in 45 markets in the western United States. Headquartered in Minneapolis, Minnesota, the company currently employs approximately 1,400 telecommunications/Internet professionals, serves over 60,000 business customers and has in excess of 570,000 access lines in service throughout its markets in Arizona, California, Colorado, Minnesota, Montana, Nevada, Oregon, Utah and Washington. For more information, please visit our web site at www.eschelon.com Forward Looking Statements This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements are based on Eschelon Telecom�s current intent, belief and expectations. These statements are not guarantees of future performance and are subject to certain risks and uncertainties that are difficult to predict. Actual results may differ materially from these forward-looking statements because of the company�s history of losses, ability to maintain relationships with RBOCs, substantial indebtedness, intense competition, dependence on key management, changes in government regulations, and other risks that may be described in the company�s filings with the Securities and Exchange Commission. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today�s date. Eschelon Telecom undertakes no obligation to update or revise the information contained in this announcement, whether as a result of new information, future events or circumstances or otherwise.