"After 11 years of business, receiving this recognition from Deloitte is not only a tremendous validation of the quality of our services, but also our employees," said Arunas Chesonis, PAETEC's chairman and CEO. "I credit our long-term success over the past decade to the unmatched service delivered by each of our 3,700 professionals every day."

The Deloitte Technology Fast 500 recognizes 500 of the fastest growing technology, media telecommunications, life sciences and clean technology companies in North America based on percentage of fiscal year revenue growth over five years. In 2003 and 2004, PAETEC also ranked on the list at #2 and #154 respectively.

Overall, companies that ranked on the 2009 Technology Fast 500 had growth rates ranging from 212 percent to 146,050 percent over five years. PAETEC's revenues grew during that time period from $414M in 2004 to $1.57B in 2008. The entire list of 500 may be viewed at the Deloitte web site: http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/TMT_us_tmt/us_tmt_Fast500winnersbyrank_101509.pdf. http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/TMT_us_tmt/us_tmt_Fast500winnersbyrank_101509.pdf.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

Ethernet access enables businesses to connect buildings or access the PAETEC MPLS network using the same technology commonly used in Local Area Networks, simplifying network management and reducing equipment costs. PAETEC now serves a total of 36 on-net markets with Ethernet access and plans to reach an additional six markets by year-end, serving over half of its 83 core markets nationwide with direct Ethernet access. PAETEC can also reach 100% of its MSA coverage area via Ethernet utilizing existing partnership agreements.

"We've heard from our customers of their desire to use Ethernet as a local loop to drive new speeds and efficiency for their business," said John Chapman, senior vice president of marketing. "Today's announcement is a continuation of our tradition of offering personalized solutions to meet the diverse needs of our customers. We now offer multiple access methods to our network, including Ethernet, T-1 to OC-3 circuits, Fixed Wireless or even direct access in our data centers."

PAETEC offers its Ethernet Local Loop product primarily through Network-to-Network Interface (NNI) connections with various local access providers within its service areas. Earlier in 2009, PAETEC also announced Ethernet capabilities via its own fixed wireless circuits across the United States.

PAETEC now can deliver Ethernet access to areas in Alabama, California, Connecticut, District of Columbia, Florida, Georgia, Illinois, Kentucky, Louisiana, Massachusetts, Maryland, North Carolina, New Jersey, New York, Pennsylvania, South Carolina, Tennessee, and Virginia. The company is planning on future Ethernet access expansions in the west and mid-western areas of the United States.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

Conference Call details are as follows:
Call Date: November 5, 2009
Call Time: 8:30 a.m. ET
US/Canada Dial in: 866.314.4483
International: 617.213.8049
Passcode: 45125083
Audio Webcast: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=190031&eventID=2484118.

Replay details are as follows:
Replay Dates: Nov. 5, 2009, 11:30 a.m. ET through Nov. 19, 2009
US/Canada Replay Dial in: 888.286.8010
International Replay Dial in: 617.801.6888
Replay Passcode: 23306870
Replay Webcast: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=190031&eventID=2484118.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

"We've designed our organic expansion strategy to best meet our customer base where they are, in virtually any major city in the country," said Chief Operating Officer E.J. Butler, Jr. "Not only are we building the most robust, customer focused product line in the industry, but now with a more of a ubiquitous reach in those major markets than ever before."

In addition to its local service rate centers, PAETEC can serve most areas of the United States with Internet, Advanced VPN Applications, Security Solutions, Conferencing Services, Fixed Wireless, long distance service and many other communication services.

"Our continued geographic expansion to meet the needs of our customers has become a part of our DNA," said John Chapman, senior vice president of marketing. "It's part of our ongoing effort to achieve greater local service density and serve our countless multi-location customers with offices dispersed around the nation."

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

Forward-Looking Statements

Except for statements that present historical facts, this release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. In some cases, you can identify these statements by such forward-looking words as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "should," "will" and "would," or similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause PAETEC's actual operating results, financial position, levels of activity or performance to be materially different from those expressed or implied by such forward-looking statements. Some of these risks, uncertainties and factors are discussed under the caption "Risk Factors" in PAETEC's 2008 annual report on Form 10-K and in PAETEC's subsequently filed SEC reports. They include, but are not limited to, the following risks, uncertainties and other factors: general economic conditions and trends; the continued availability of necessary network elements at acceptable cost from competitors; changes in regulation and the regulatory environment; industry consolidation; PAETEC's ability to manage its business effectively; competition in the markets in which PAETEC operates; failure to adapt product and service offerings to changes in customer preferences and in technology; PAETEC's ability to integrate the operations of acquired businesses; PAETEC's ability to implement its acquisition strategy; any significant impairment of PAETEC's goodwill; future sales of PAETEC's common stock in the public market and PAETEC's ability to raise capital in the future; interest rate risks and compliance with covenants under PAETEC's debt agreements; PAETEC's ability to attract and retain qualified personnel and sales agents; PAETEC's failure to obtain and maintain network permits and rights-of-way; PAETEC's involvement in disputes and legal proceedings; PAETEC's ability to maintain and enhance its back office systems; and effects of network failures, system breaches, natural catastrophes and other service interruptions. PAETEC disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

"These solutions are truly unique in the marketplace and offer efficiency and value to businesses which other carriers simply don't offer," said John Chapman, senior vice president of marketing. "We're thankful for this recognition of the products by TMC with the Excellence Awards."

The 9224 from Allworx, a wholly owned subsidiary of PAETEC, is a premier high-fidelity IP phone bringing the latest advancements in IP telephony to today's business leaders. The 9224 phone has the capability to deliver a multitude of call appearances, line appearances, speed dials, busy lamp fields and an array of other functions. Earlier in September, PAETEC announced the IP Simple Solutions bundle, leveraging the company's award winning SIP Trunking voice service, High-Speed Internet, MPLS VPN as well as the 9224 phone and IP PBX.

"The editors of INTERNET TELEPHONY were pleased to grant PAETEC with INTERNET TELEPHONY Excellence Awards for their achievements in advancing IP communications and providing genuine solutions in the marketplace with both Fixed Wireless and the Allworx 9224 Phone and Expander solutions," said Erik Linask, Group Editorial Director of INTERNET TELEPHONY.

The 2009 INTERNET TELEPHONY Excellence Award winners are published in the October 2009 issue of INTERNET TELEPHONY magazine, www.itmag.com.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

About TMC
Technology Marketing Corporation (TMC) is an integrated global media company helping clients build communities in print, in person and online. TMC publishes Customer Interaction Solutions, INTERNET TELEPHONY, Unified Communications, and NGN magazines. TMC is also the first publisher to test new products in its own on-site laboratories, TMC Labs. TMCnet, TMC's Web site, is the leading source of news and articles for the communications and technology industries. TMCnet is read by two to three million unique visitors each month worldwide, according to Webtrends. For more information about TMC, visit www.itmag.com.

PAETEC's revenue and adjusted EBITDA expectations for the full year 2009 assume, among other matters, that there is no further significant decline in economic conditions and that there are no significant changes in the competitive or regulatory environments. PAETEC's revenue and adjusted EBITDA expectations for full year 2009 are as follows:

($ in millions)

Revenue $1,575 to $1,585
Adjusted EBITDA $245 to $255

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

As prime contractor, Shared Technologies has acquired the PINNACLE product from PAETEC on behalf of the City to complement the technology services already provided, including support and management of the City's communication infrastructure encompassing of over 14,000 delivery points supported by 18 Nortel Switches.

"We are continually looking for unique solutions to assist our customers in optimizing their investment in their IT systems and performance. With the PINNACLE product, customers have realized significant operational savings," said Tony Parella, president and CEO of Shared Technologies. "The PINNACLE suite supports our customers' goals, and will reduce their telecommunications expense. We are honored to have the City of Seattle as one of our preeminent customers, and that they have chosen this product and Shared Technologies to support them in their relentless and ongoing pursuit of operational excellence."

"I commend the City on an extensive due diligence search weighing many options, and am very pleased that in the end, they came to the conclusion that PINNACLE is the only comprehensive integrated solution that is designed to support large complex government organizations like the City of Seattle," said Larry Foster, vice president of technology operations for PINNACLE. "We have a successful twenty-year track record providing solutions to top tier institutions like the City of Seattle. PAETEC supports every implementation with our cadre of ITIL certified consultants to ensure a successful and fruitful implementation."

About PAETEC Software Corp.
PAETEC Software Corp, a subsidiary of PAETEC Holding Corp. (NASDAQ GS: PAET). Its award winning telecommunications management software, PINNACLE, has been used for over a decade by large businesses, universities and government agencies. The software received the 2007 Product of the Year Award by TMC's Communications Solutions for the PINNACLE v6 product. For more information on PINNACLE, please visit www.pinnsoft.com.

About Shared Technologies
Founded in 1974, Shared Technologies is a recognized national total solutions provider and supplier of converged and IP telephony technology to the national enterprise business community. Shared Technologies is a privately held corporation, based in Coppell, Texas, operating in forty-eight markets in the United States. Shared Technologies was recognized as a FORTUNE magazine "100 Best Companies to Work For" in 2008 & 2009. For more information about Shared Technologies, visit www.sharedtechnologies.com.

The Board of Directors has fixed the size of the program at approximately the maximum amount permitted under PAETEC's debt agreements for the period indicated assuming future compliance with applicable covenants. The Company's previous stock repurchase program expired in August 2009.

Forward-Looking Statements
Except for statements that present historical facts, this release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. In some cases, you can identify these statements by such forward-looking words as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "should," "will" and "would," or similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause PAETEC's actual operating results, financial position, levels of activity or performance to be materially different from those expressed or implied by such forward-looking statements.

Some of these risks, uncertainties and factors are discussed under the caption "Risk Factors" in PAETEC's 2008 Annual Report on Form 10-K and in PAETEC's subsequently filed SEC reports. They include, but are not limited to, the following risks, uncertainties and other factors: general economic conditions and trends; the continued availability of necessary network elements at acceptable cost from competitors; changes in regulation and the regulatory environment; industry consolidation; PAETEC's ability to manage its business effectively; competition in the markets in which PAETEC operates; failure to adapt product and service offerings to changes in customer preferences and in technology; PAETEC's ability to integrate the operations of acquired businesses; PAETEC's ability to implement its acquisition strategy; any significant impairment of PAETEC's goodwill; future sales of PAETEC's common stock in the public market and PAETEC's ability to raise capital in the future; interest rate risks and compliance with covenants under PAETEC's debt agreements; PAETEC's ability to attract and retain qualified personnel and sales agents; PAETEC's failure to obtain and maintain network permits and rights-of-way; PAETEC's involvement in disputes and legal proceedings; PAETEC's ability to maintain and enhance its back office systems; and effects of network failures, system breaches, natural catastrophes and other service interruptions. PAETEC disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

At the show, PAETEC officially launched its IP-based voice, data and equipment bundle offering, IP Simple Solutions, which is now available to a national audience where Dynamic IP voice service is available.

"IP Simple Solutions creates one of the most unique offerings in the industry with end-to-end service and support from the desktop to the cloud," said John Chapman, senior vice president of marketing. "We believe IP Simple Solutions is a clear differentiator for PAETEC and we're thankful of being honored with the Editors' Choice award."

The ITEXPO Best of Show Awards recognize innovative products and solutions that were featured in the Exhibit Hall during the event. This designation serves to highlight the technological achievement and creative product features that set these winners apart from the rest of the crowd. INTERNET TELEPHONY magazine editorial staff evaluated the pre-show nominations, and met with vendors to inspect and review the displayed products on the first day of the Expo. A full list of the winners is posted on TMC's Web site at www.tmcnet.com.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

About TMC
Technology Marketing Corporation (TMC) is an integrated global media company helping clients build communities in print, in person and online. TMC publishes Customer Interaction Solutions, INTERNET TELEPHONY, Unified Communications, and NGN magazines. TMC is also the first publisher to test new products in its own on-site laboratories, TMC Labs. TMCnet, TMC's Web site, is the leading source of news and articles for the communications and technology industries. TMCnet is read by two to three million unique visitors each month worldwide, according to Webtrends. For more information about TMC, visit www.tmcnet.com.

"Out of the 42 states which we serve, New York State is the largest for PAETEC and home both to our corporate headquarters and approximately 1,000 of our employees," said Kevin Errity, president of the east region for PAETEC. "We thank CIO/OFT for the careful consideration of the available carriers and for recognizing PAETEC's unique set of personalized solutions and unmatched service, which has made us one of the strongest telecommunication providers in the nation."

CIO/OFT provides statewide technology direction and centralized technology policies and services to New York State government entities. The agency's voice and data telecommunication systems support over 90,000 users and 10,000 teleconferences per year. The local and long distance (toll) services provided from PAETEC are expected to save the state approximately $370,000 annually for the next five years, representing a 20 percent cost savings.

"The need to increase government efficiency while reducing costs has come into increasing focus with the recent fiscal crisis," said Dr. Melodie Mayberry-Stewart, New York State Chief Information Officer and Director of the Office for Technology. "PAETEC will enable the State of New York Office to demonstrate a significant cost savings while meeting the demands to deliver better core voice services to our customer agencies."

In addition to its nationwide presence and corporate headquarters in the Rochester area, PAETEC has offices in Buffalo, Syracuse, Albany, Westchester, Hudson Valley, Manhattan and Long Island.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

"This creates one of the most unique offerings in the industry with end-to-end service and support from the desktop to the cloud," said John Chapman, senior vice president of marketing. "With IP Simple Solutions, PAETEC can offer and support SIP Trunking, High-Speed Internet and MPLS VPN nationwide, as well as our own IP PBX and phones."

Currently, businesses must combine services from a service provider and a different equipment manufacturer, often leading to challenges in support. The IP Simple Solutions product bundle couples a PAETEC Dynamic IP product with a customer-defined equipment bundle. Customers may choose from the following equipment to complete their IP Simple bundle:

• IP PBX: 24x or 6x
• IP Phones: 9212 and/or 9224
• Optional Software: Call Assistant, Call Queuing, Conference Center, VPN, and Multi Language Pack.

As IP Simple Solutions is an equipment rental program, at the end of their initial term agreement customers have the option of retaining and continuing with the same monthly rental payments, or returning the equipment to PAETEC.

IP Simple Solutions is a result of PAETEC's acquisition of the IP PBX manufacturer Allworx in 2007. In October, 2008, PAETEC's SIP Trunking was named Most Innovative Product by Telephony Magazine and in August, 2009, Business Solutions Magazine named the Allworx 24x and 9224 as Best Channel Product in the IP PBX and IP Phone categories respectively.

12th Annual Kaufman Bros. Investor Conference
W Hotel, New York, NY
Wednesday, September 9, 2009; 9:00 a.m. ET

Bank of America Merrill Lynch 2009 Media, Communications & Entertainment Conference
The Ritz-Carlton, Marina del Rey, CA
Thursday, September 10, 2009; 8:45 a.m. PT
Live and archived webcast, available until September 25, 2009:
http://www.veracast.com/webcasts/bas/media09/id07203243.cfm

Jeffries 7th Annual Communications Conference
Mandarin Oriental Hotel, New York City
Thursday, September 17, 2009; 1:30 p.m. ET

Deutsche Bank 17th Annual Leveraged Finance Conference
The Phoenician, Scottsdale, AZ
Wednesday, September 30, 2009; 8:35 a.m. MT

A copy of the presentation for the conferences will be made available on the Investor Relations portion of www.paetec.com.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

The results are based on 19,833 votes calculated by Penn State University and BSM's editorial staff, and measured five categories: Richness of Features, Product Reliability, Ease of Integration, Ease of Upgrade and the Value Added Reseller's (VAR's) Ability to Service. The Allworx 24x took home the top score in the IP PBX category, and the Allworx 9224 won for IP Phones. Unlike traditional phone systems, IP-based systems can deliver new efficiency such as using unused bandwidth to boost Internet speeds, seamless integration of phones with PCs and remote access for employees to access the powerful features anywhere they have Internet access.

"These awards from Business Solutions Magazine are a terrific validation of what thousands of businesses have already learned about our products," said Jeff Howe, President of Allworx. "The ease of use, powerful features and reliability are second to none and clearly help businesses become stronger."

The 24x IP PBX is designed for up to 150 users and is an all-in-one communication system integrating a feature-rich phone system, advanced IP phones and powerful software features that substantially improve your company's productivity while saving you on-going monthly costs. The 24x includes powerful features including conferencing bridge, remote access to the phone system features over the public Internet, Follow-me Anywhere and Unified Messaging.

The 9224 IP phone is today's premier high-fidelity IP phone bringing the latest advancements in IP telephony to today's business leaders. Supporting between 24 to 96 programmable function keys (PFKs) with the additional Tx 92/24 Expander units, the Allworx 9224 can deliver a multitude of call appearances, line appearances, speed dials, busy lamp fields and an array of other functions.

"We're continuing to expand and invest in our IP-based voice services using our Dynamic IP platform as well as assisting our customers in the transition from traditional TDM to powerful VoIP solutions," said John Chapman, senior vice president of marketing. "For example, in May we opened the new Bay Area switch in Northern California completely on Dynamic IP and recently expanded the platform to New Orleans and Mobile, with other cities planned in 2010." For more information on PAETEC's product portfolio, visit www.paetec.com.

For more information on the winning systems, visit www.allworx.com. For information on the Best Channel Product Awards from Business Solutions Magazine, visit www.businesssolutionsmag.com.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

The awards were based on results from the 2009 Business Connectivity and Wireless Report Card, which rates carriers in key product and service categories based on more than 3,000 individual customer evaluations.

"We're honored to receive this award, especially since it's a result of direct feedback from our customers," said PAETEC Chief Operating Officer E.J. Butler. "Not only do we deliver innovative communication solutions with unmatched service across our 42 state operating territory, but this research by ATLANTIC-ACM demonstrates that our voice services also deliver an industry-leading value."

PAETEC's voice services include traditional business-class local, long distance and conferencing services, as well as advanced Voice over IP solutions such as Hosted IP Telephony and Dynamic IP with Session Initiation Protocol (SIP) Trunking.

"We're continuing to expand and invest in our IP-based voice services using our Dynamic IP platform as well as assisting our customers in the transition from traditional TDM to powerful VoIP solutions," said John Chapman, senior vice president of marketing. "For example, in May we opened the new Bay Area switch in Northern California completely on Dynamic IP and recently expanded the platform to New Orleans and Mobile, with other cities planned in 2010." For more information on PAETEC's product portfolio, visit www.paetec.com.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

About ATLANTIC-ACM
Boston-based ATLANTIC-ACM is a leading provider of strategic research and consulting services serving the telecommunications and information industry. The company has been providing benchmarked customer feedback for carriers in its "Report Card" Series since 1995, including the "Business Connectivity Report Card," which is in its fourth year of production. In addition, the company assists clients in evaluating telecommunications opportunities for successful investment, market entry, benchmarking, customer response, and long-term planning. For more information, visit ATLANTIC-ACM's website at http://www.atlantic-acm.com.

• Second quarter revenue of $395.2 million, which represented a 2.5% decrease from second quarter 2008 revenue of $405.3 million;
• Second quarter adjusted EBITDA* of $63.5 million, which represented a 5.6% increase over second quarter 2008 adjusted EBITDA of $60.2 million;
• Second quarter free cash flow of $36.3 million, which represented the 26th consecutive quarter in which PAETEC or its predecessor generated positive free cash flow;
• Second quarter net loss of $16.5 million compared to second quarter 2008 net loss of $14.7 million;
• Second quarter net cash provided by operating activities of $38.2 million compared to second quarter 2008 net cash provided by operating activities of $44.1 million;
• A cash balance of $139.7 million at June 30, 2009; and
• Refinancing of a portion of the company's credit facility term loan debt and extension of maturities through the issuance of $350.0 million principal amount of 8 7/8% senior secured notes due 2017.

Conference Call details are as follows:
Call Date: August 5, 2009
Call Time: 8:30 a.m. ET
US/Canada Dial in: 800.237.9752
International: 617.847.8706
Passcode: 59315390
Audio Webcast: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=190031&eventID=2339056

Replay details are as follows:
Replay Dates: Aug. 5, 2009, 11:30 a.m. ET through Aug. 19, 2009
US/Canada Replay Dial in: 888.286.8010
International Replay Dial in: 617.801.6888
Replay Passcode: 84246175
Replay Webcast: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=190031&eventID=2339056

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

The 6,500 square feet of space available for customers includes the newest advancements in equipment with connectivity up to 10 Gbps, more energy efficient devices, higher cooling capacity to meet the increasingly powerful applications and a new Bi-Fuel power system providing redundant power generation fueled by conventional diesel, or a cleaner combination of diesel and natural gas. The center is also served by a diverse power grid, separate from New York City and Philadelphia, offering further resiliency in the event of a wide-scale brown-out or power outage in the area.

"This data center includes the latest advancements in technology and complements PAETEC's deep product set well," said Mr. Chesonis. "Network-based systems such as advanced software applications and virtual servers continue to migrate into the cloud, and our customers have expressed a need for a highly secure solution with ease in management and cost savings over them managing these systems themselves."

The new data center builds onto the PAETEC's existing 7,500 square foot center, opened in 2001 which currently houses equipment for more than 60 companies nationally and over 50,000 web domain names.

In addition to the robust infrastructure, and capability to house customer provided applications, the data center supports hosted PAETEC products like Data Backup and Recovery which automatically and securely stores vital corporate data for instant retrieval or the easy-to-use Shared Web Hosting service, which provides a fully managed solution for managing a business' website.

"We designed this center based on feedback from our customers over the past eight years. Northeastern customers can reach us in just an hour from Philadelphia or New York City for proximity; west coast customers can reduce cross-country latency in reaching their east coast end users, and Southeastern and Midwest companies can ensure continuity in the event of a weather disaster." said Christopher Lodge, vice president and general manager for Data Center Services.

Because of the advanced technology companies in the area such as PAETEC, the Lehigh Valley has been referred to as the Silicon Valley of Pennsylvania. Across the nation including available space in its central offices, PAETEC has 1.4 million square feet of data center space. For more information on PAETEC's data center solutions, visit www.fast.net.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

"I am honored to have the opportunity to serve as the second president of TEMIA," said Foster. "TEMIA has demonstrated how the power of collaboration can influence the industry for the betterment of our customers. TEMIA is poised to build upon the successes we have achieved and help our clients' maximize their investments by streamlining their relationships with their technology supply partners."

TEMIA is known as the authoritative voice for the Telecom Expense Management (TEM) industry. TEMIA's mission is to raise awareness and knowledge of the benefits of TEM solutions, to improve the quality and value of TEM solutions through the development and promotion of industry standards, and to cultivate shared industry knowledge among TEM providers, business partners, telecom service providers, and enterprise clients.

About PAETEC Software Corp.
PAETEC Software Corp. is a subsidiary of PAETEC Holding Corp. (NASDAQ GS: PAET). Its award winning telecommunications management software, PINNACLE, has been used for over a decade by large businesses, universities and government agencies, and received the 2007 Product of the Year Award by TMC's Communications Solutions for the PINNACLE v6 product. For more information on PINNACLE, please visit www.pinnsoft.com.

PAETEC also applauds the announcement of the FCC's broadband initiative at the July 2, 2009, Open Meeting. "We look forward to engaging with the new members of the FCC on several important policy initiatives such as special access reform that PAETEC believes are vital components of the FCC's omnibus broadband initiative," said Arunas A. Chesonis, PAETEC chairman and CEO. "One of the primary objectives of the broadband initiative should be to safeguard economically -priced last mile connections used to provide the vast majority of broadband services to business customers today."

In light of a recent D.C. Court of Appeals order, that work will include careful consideration of the remand of Verizon Communications Inc. forbearance petitions in six major northeastern cities. "Because PAETEC utilizes special access rather than unbundled network elements to serve our end users in Verizon markets when we lease last mile facilities, the Court's remand has no immediate effect on PAETEC," said Mr. Chesonis. "However, PAETEC will encourage the FCC to undertake a thorough analysis during the remand to make sure that UNE forbearance is granted only when it is truly in the public interest of promoting competitive choice for business customers."

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

"We were pleased that the offering was well-received by the debt market, which enabled us to complete the offering within a short timeframe," said Arunas A. Chesonis, chairman and CEO. "By extending our debt maturities, we now have enhanced financial flexibility to invest in our network, customer support, and expansion of our product suite. Over our 11 years, our conservative fiscal management has allowed PAETEC to thrive in times where others have not."

As previously announced, the Company used the net proceeds from the offering to repay a portion of the loans outstanding under PAETEC's existing senior secured term loan credit facility.

"PAETEC's history of disciplined financial management has enabled the Company to access the capital markets opportunistically," said Keith Wilson, chief financial officer. "The continued support from the financial community is a solid validation of our long term strategy and being a competitive communications market leader."

Additional information about the senior secured notes offering will be contained in the Company's current report on Form 8-K to be filed with the Securities and Exchange Commission.

Forward-Looking Statements

"Financial Services are the largest vertical industry for PAETEC, and one which we intend to continue to grow aggressively," said Tony Adornato, PAETEC's senior director of financial markets. "Transitioning the niche Trader Voice service to Speakerbus allows PAETEC to leverage its core competency by retaining the network component and divesting the day-to-day management to the product experts."

In the most recent fiscal year, these assets generated less than $1 million in revenues.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

The net proceeds from the offering will be used to repay loans outstanding under PAETEC's existing senior secured term loan credit facility.

The closing of the offering is expected to occur on or about June 29, 2009, subject to the satisfaction of customary closing conditions.

The senior notes have not been and will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration except pursuant to an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.

The net proceeds from the offering will be used to repay term loans outstanding under PAETEC's existing credit facilities.

The offering is expected to be completed during the week of June 15, 2009, subject to market conditions.

The notes have not been and will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration except pursuant to an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.

"The amendment allows us to take advantage of favorable market conditions and opportunistically enhance our capital structure," said Keith Wilson, PAETEC chief financial officer. "We appreciate the willingness of the debt community to allow us the flexibility in today's market; this is a great show of support for PAETEC's historical prudence and credit strength."

Additional information about the amendment will be contained in the Company's report on Form 8-K to be filed with the Securities and Exchange Commission.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

Presentations will be given by Arunas Chesonis, chairman and chief executive officer of PAETEC, and members of the executive management team. A copy of the presentation slides will be posted at the start of the event to www.paetec.com under Investor Relations, Events and Presentations.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

• First quarter revenue of $399.3 million, which represented an 11.3% increase over first quarter 2008 revenue of $358.8 million;
• First quarter adjusted EBITDA* of $63.9 million, which represented a 7.5% increase over first quarter 2008 adjusted EBITDA of $59.5 million;
• First quarter free cash flow* of $33.9 million, which represented the 25th consecutive quarter in which PAETEC or its predecessor generated positive free cash flow;
• First quarter net loss of $3.3 million compared to first quarter 2008 net loss of $3.0 million;
• First quarter net cash provided by operating activities of $11.2 million compared to first quarter 2008 net cash provided by operating activities of $2.6 million;
• The repurchase of 623,200 shares of common stock in first quarter 2009 for an aggregate cost of $764,853 or $1.23 average cost per share; and
• A cash balance of $144.0 million at March 31, 2009.

"We are excited to bring PAETEC's brand of personalized telecommunications services throughout the San Francisco Bay Area," said Reginald Scales, PAETEC's West Region President. "Since every business is unique, we tailor our solution to meet the individual needs of our customer. This level of attention, combined with our national network reach, breadth of products and quality of service, has made PAETEC the premier alternative to incumbent local phone companies."

The company's broad product portfolio includes services such as MPLS VPN which enables businesses to cost-effectively manage bandwidth and connect multiple locations, and Dynamic IP, a VoIP service which provides businesses the maximum benefits of IP-based communications.

PAETEC leverages and combines individual products to create comprehensive solutions to address requirements in the areas of:

• Communications by providing reliable and scalable products for data, voice, and Internet services. PAETEC tailors the services to deliver cost effective internal and external communications.
• Business Continuity by developing effective tools for disaster preparedness, network redundancy, and application recovery. The tools help businesses recover from the loss or corruption of data, and to maintain operations during and after a disaster.
• Security by offering products and services that protect critical corporate files and applications, mitigate risks, and support regulatory compliance.
• Managed Services by creating services to address budgetary constraints and limited IT resources. Customers can essentially outsource communications requirements, which allows the business to focus limited IT resources on other critical needs.
• Financing through PAETEC's unique Equipment for Services Program which allows customers to reduce or even eliminate the capital expense of communications equipment as part of an overall network services act.

PAETEC can offer solutions for large enterprises with multiple locations within California and across state boundaries, as well as small and medium-businesses with a single location.

With the expansion, PAETEC now offers its full suite of communication solutions in 83 of the top 100 MSAs. Many large Bay-Area organizations, including major universities and government agencies, have been PAETEC customers for several years through their use of PINNACLE, PAETEC's telecom software application suite.

"We know that PAETEC will have to earn our customers' business and loyalty," said Rob McCarthy, PAETEC's vice president and general manager in Northern California and the Pacific Northwest. "We intend to build long-term relationships by providing innovative solutions with exceptional value and industry leading service."

For more information about PAETEC services in the Bay Area please contact the Walnut Creek office at 925.937.1325.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

Companies were selected based on an assessment of the employee policies and procedures, as well as results of an internal employee survey conducted by the Best Companies Group. Winners were selected in two categories: small and medium-sized companies of 15-249 employees, and large-sized companies of 250 employees or more.

"There's over a half-million businesses in New York State, and we're honored to be included in this list of top workplaces," said Arunas Chesonis, PAETEC's chairman and CEO. "PAETEC has long held the belief that satisfied employees will ultimately be more productive and better serve our customers. This recognition as a Best Company to Work for in New York validates our unique culture."

PAETEC's corporate culture is based on four values which permeate the organization: Caring Culture, Open Communication, Unmatched Service and Personalized Solutions. By adhering to these values, PAETEC has rapidly grown into one of the largest communication providers in the nation. The unique workplace is also highlighted in the business book, It Isn't Just Business, It's Personal, co-authored by Chesonis.

Further details about the 2009 Best Companies to Work for in New York initiative can be found online at www.bestcompaniesNY.com.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

Conference Call details are as follows:
Call Date: May 6, 2009
Call Time: 5:00 p.m. ET
US/Canada Dial in: 866.804.6920
International: 857.350.1666
Passcode: 40541684
Audio Webcast: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=190031&eventID=2176222.

Replay details are as follows:
Replay Dates: May 6, 2009, 9:00 p.m. ET through May 20, 2009
US/Canada Replay Dial in: 888.286.8010
International Replay Dial in: 617.801.6888
Replay Passcode: 76319726
Replay Webcast: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=190031&eventID=2176222.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

The agreement, signed in March 2009, utilizes PAETEC as one of two preferred Internet providers able to deliver service to state legislative agencies requested through DIR. In addition, PAETEC will now have the ability to directly offer services to public schools and local governments offering service from a T-1 (1.5 Mbps) to Gigabit Ethernet (1,000 Mbps), using terrestrial fiber optics or the recently expanded Fixed Wireless service.

"As a result of this agreement, Texas state agencies will now have access to PAETEC's innovative IP solutions and unmatched service," said Keith Hatley, PAETEC's vice president and general manager for Texas. "We have a long history in this state, and look forward to further expanding our presence."

PAETEC and its predecessors have been offering telecommunication services in Texas since 1995 with sales offices in Austin, Dallas, Fort Worth, Houston, San Antonio and a major employee center in the Woodlands near Houston. The company also offers personalized telecommunications solutions in 41 other states.

To learn more about the State of Texas agreement, visit: http://www.paetec.com/lp/stateoftexas/.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

The EFS program takes a portion of a business' overall telecommunications profitability and applies it to a third party lease for needed hardware and software, such as a new PBX, router, copier, software applications or even office furniture. Since the program's inception ten years ago, it has financed more than $80,000,000 in equipment with the typical subsidy from $16,000 up to $500,000 or more.

"We look at every customer relationship as an opportunity to make both our companies stronger," said Mario DeRiggi, president of national sales and service. "EFS is an extension of that win-win philosophy and has clearly differentiated us and our innovative solutions in the business telecom space."

The success of the program is rooted in proprietary software that determines profit margin of an overall telecommunications solution. A portion of the profit margin is reserved to meet corporate profitability guidelines and the remainder may be used for an equipment lease subsidy. Often, the overall solution, including an EFS equipment subsidy, may deliver newer, more robust solutions with industry-leading service for less cost than their incumbent carrier.

For example, PAETEC recently designed a total communications solution for a New England business, including connecting their eight sites with a secure MPLS VPN, each with local voice via PRI ISDN lines. Utilizing the EFS program, a portion of the network subsidized over $500,000 in new equipment, including an 850-seat PBX and multiple routers.

"For most businesses in 2009, capital budgets are tighter than they have been in years." said Lisa Fitzgerald, vice president of business development. "EFS changes the paradigm. PAETEC is no longer merely a vendor, but a true partner in our customers' overall success by helping them grow their business and driving down operating and capital expenses."

For more information on the program, visit www.paetec.com/efs/overview.html/

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

PAETEC's compliance initiative was started as a result of the acquisition of US LEC in 2007 in which it became a publicly traded company, and was achieved through process modifications, validation testing and coordination between 28 internal departments. "This was a significant feat for PAETEC given the parallel integration initiatives of systems and processes over the past two years," said Arunas Chesonis, PAETEC's chairman and CEO. "As a result of the SOX project and associated process improvements, we're now a stronger company."

In 2005, the company also received national recognition from the Society of Financial Service Professionals after receiving the American Business Ethics Award in the mid-size company category (250-2,500 employees). PAETEC will be expanding its SOX compliance initiatives to encompass the 2008 acquisition of McLeod USA, with a planned completion by the end of 2009.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

PAETEC's Fixed Wireless uses carrier-grade microwave equipment and consultative engineering to build reliable 'last-mile' access loops between a customer network and a local PAETEC point of presence. Wireless local loops can be provisioned at DS-3, OC-3, Fast Ethernet and Gigabit Ethernet speeds, and support the complete range of voice and IP services in the PAETEC portfolio.

The Fixed Wireless Transport solution plays an important role in PAETEC's robust Disaster Recovery and Business Continuity suite of services. By provisioning a wireless local loop, PAETEC can offer a customer complete physical infrastructure diversity within a market including termination to an alternate PAETEC Central Office. PAETEC wireless solutions are also available for enterprise customers such as universities, healthcare institutions, or professional service organizations requiring high-bandwidth point-to-point connections between buildings in a private network.

"The capability to provision wireless local loops clearly sets PAETEC apart from its competitors," said John Chapman, senior vice president of marketing. "Our growing business continuity portfolio enables us to deliver unique transport solutions like Fixed Wireless giving customers a new level of diversity."

PAETEC's expansion of its Fixed Wireless product suite comes as the result of the acquisition of MPX, Inc., a New York based company with 10 years of experience in licensed fixed wireless system engineering and field integrations. The 2008 acquisition brought a strong list of customers utilizing this product today.

"We have worked with a number of businesses across the U.S. as an alternative to fiber," said Mark Palvino, vice president of PAETEC Wireless. "These customers require very high bandwidth and have a low tolerance for interruptions. Fixed Wireless delivers them the speed and continuity they need."

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

Ms. Diamond is the President and Managing Director of the New York office of Young & Rubicam, one of the top ten advertising agencies in the world. In 2005, she received the prestigious Advertising Working Mothers of the Year award from Advertising Women of New York and Working Mother magazine as a "Trailblazer" in the industry. Throughout her career, Ms. Diamond has served over 30 client partners and pro bono accounts, including strategic branding initiatives with Xerox and Campbell Soup.

"Shelley Diamond will offer a fresh perspective to our Board of Directors," said PAETEC Chairman and CEO, Arunas Chesonis. "The innovative vision she's demonstrated throughout her career, as well as her extensive marketing and advertising experience makes her an ideal fit for PAETEC's strategic direction."

Ms. Diamond was elected by the board on March 5, 2009, to the seat vacated by Mr. James Kofalt after he resigned. "James Kofalt has been our longest serving board member and has served in every capacity possible," said Chesonis. "On behalf of our employees and board, we thank him for his leadership and service to PAETEC over the past ten years."

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

COMPTEL is the leading industry association representing competitive communications service providers and their supplier partners in promoting technological innovation and growth through competitive voice, video and data services. COMPTEL strives to ensure competitive communication providers can offer lower prices and innovative services through education and policy advocacy before Congress, the FCC, and the courts.

"I have had the pleasure of knowing Joe Ambersley both professionally and personally for many years and I am excited to welcome him as our new Chairman of the Board," said COMPTEL CEO Jerry James. "PAETEC has had a long standing relationship with COMPTEL and Joe's experience in the industry and his understanding of the challenges and opportunities that lay ahead will be invaluable for our members."

Ambersley joined PAETEC as Executive Vice President along with the founding of the company in 1998, and has served in a variety of leadership roles in business development, sales and the strategic development of PAETEC's industry verticals. Prior to this election, he also served as Vice Chairman and Treasurer for COMPTEL.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

"We strive every day to assist people in becoming productive citizens, but the new costs for the Citizenship Test can be prohibitive for many of our learners," said Bob Mahar, executive director for LVR. "We commend PAETEC and other private donors for helping to make up the difference."

The scholarship fund is available to learners enrolled in the literacy program who are planning to take the test within three months. LVR volunteers will review the applications for the scholarships and choose the recipients of the $200 scholarship.

"We've found illiteracy to be a root cause of countless other social problems," said John Chapman, senior vice president of PAETEC and board member at LVR. "We're honored at PAETEC to assist Literacy Volunteers of Rochester with this important endeavor."

With a waiting list to enroll as a learner, LVR is continuing to actively recruit volunteer tutors. For more information about the program or becoming a tutor, contact LVR at 585.748.3030 or online at www.literacyrochester.org.

About Literacy Volunteers of Rochester
Literacy Volunteers of Rochester, Inc. is an organization of trained volunteers dedicated to providing one-to-one or small group tutoring to functionally illiterate adults and to others lacking English language skills, and to fostering literacy in the greater Rochester NY area. For more information, visit www.literacyrochester.org.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

SIP Trunking, short for Session Initiation Protocol, converges data, voice, and Internet communications onto a single high-speed, pure-IP circuit that establishes the foundation for advanced communications capabilities. Certifying the interoperability of communications equipment and IP networks makes it easier for businesses to achieve the full benefits of advanced collaboration capabilities. In addition, certification across PAETEC's national geographic coverage means multi-site customers can link their locations coast-to-coast using a single network provider with ease.

"Especially in times like these, business-class customers must keep a sharp watch on expenses while also maintaining the quality of customer service," said John Chapman, senior vice president of marketing. "PAETEC's relationship with Cisco can help businesses address both priorities simultaneously."

"The integration of PAETEC's SIP Trunking Service into the Cisco Configuration Assistant will help ensure a seamless setup and integration of Cisco's Smart Business Communications Systems," said Mark Monday, vice president, Small Business Solutions Business Unit, Cisco. "Businesses that take advantage of the pairing of IP-based platforms with SIP-based transport will be able to realize a simple, affordable, easy-to-manage unified communications solution with the ability to deploy hosted applications and advanced services." Laboratory interoperability testing is designed to simulate the most typically used configurations.

With Dynamic IP services from PAETEC, customers can choose the bandwidth that truly meets their requirements, from a T-1 to DS-3, Ethernet or greater. Customers can also manage their own service in real-time through PAETEC's secure online customer portal.

Other benefits of PAETEC's SIP Trunking service include:

• Standard G.729 Compression that can significantly increase the number of high-quality voice circuits within a single T-1 compared with traditional Primary Rate Interfaces (PRIs)
• Quality of Service (QoS) capabilities that prioritize voice signals over data. When no voice signals are present, all available bandwidth can be used for data.
• VoIP-to-TDM voice conversion provided within the network, requiring less equipment for the end user.
• Unlimited and free site-to-site calling between Dynamic IP locations.
• Site-to-site voice and data sharing that is protected from the public Internet.

PAETEC Dynamic IP with SIP Trunking service earned Telephony magazine's Most Innovative Product award for 2008. For more information on PAETEC, visit www.paetec.com.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

Deutsche Bank Media & Telecom Conference
The Breakers Hotel, Palm Beach, FL
Tuesday, March 3, 2009; 2:55 p.m. ET

Raymond James 30th Annual Institutional Investors Conference
JW Marriott Grande Lakes, Orlando, FL
Tuesday, March 10, 2009; 1:40 p.m. ET
Audio Webcast: http://www.wsw.com/webcast/rj43/paet/

A copy of the presentation for both conferences and an audio-only Webcast link of the discussion at the Raymond James 30th Annual Institutional Investors Conference will be made available on the Investor Relations portion of www.paetec.com.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

• Fourth quarter revenue of $400.2 million, which represented a 38.7% increase over fourth quarter 2007 revenue of $288.6 million;


• Fourth quarter adjusted EBITDA* of $60.3 million, which represented a 8.2% increase over fourth quarter 2007 adjusted EBITDA of $55.7 million;


• Fourth quarter free cash flow* of $28.2 million, which represented the 24th consecutive quarter in which PAETEC or its predecessor generated positive free cash flow;


• Fourth quarter net loss of $114.4 million, which includes a $15.0 million non-cash adjustment to PAETEC's third quarter goodwill impairment charge estimate and the establishment of a non-cash tax reserve of approximately $104.3 million against PAETEC's deferred tax assets, compared to fourth quarter 2007 net income of $15.5 million;


• Fourth quarter net cash provided by operating activities of $80.6 million compared to fourth quarter 2007 net cash provided by operating activities of $62.6 million;


• The repurchase of 3.4 million shares of common stock for approximately $4.5 million in the fourth quarter; and


• A year-end cash balance of $164.5 million.

"As we continue to develop our recently acquired markets over the past year, our strategic plan focuses on providing the right tools, hiring the right people and training them to deliver PAETEC's unmatched level of service," said E.J. Butler, chief operating officer. "We've recently completed the integration of our product portfolio and major systems, continue to recruit top industry leaders and now as demonstrated by this honor for the third year in a row, once again have been recognized as one of the leading training organizations in the world to develop top talent."

In the 2009 list, PAETEC is ranked higher than major, multinational companies such as UPS (#70), MasterCard Worldwide (#84), and Intel (#87).

PAETEC's training program offers employees a comprehensive portfolio of courses on systems, solutions and sales skills. The core foundation of the training program is the PAETEC Selling Technology and PAETEC Management Technology for sales and management employees. In 2008, the department conducted approximately 560 in-person training sessions and online webinars, in addition to a library of over 43 Computer Based Training modules.

"It's an honor to receive this recognition for three consecutive years," said David McGeough, senior director of training for PAETEC. "In order to deliver the highest level of service in the industry, our leaders realize the importance of investing in our people for a consistent and elevated level of performance."

To be eligible for the list, companies were required to complete an in-depth nomination form, including such fundamental questions as leadership development, achieving corporate goals, and how training is tied to business objectives for all departments. Training magazine then used an outside research and statistical data company to score companies based on the information provided. Magazine editors then reviewed each application to determine final rankings.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

"This is a tremendous validation of our brand of customer service," said Jim Manetta, vice president of the Network Operations Center, who also accepted the award on behalf of PAETEC. "Over the past 10 years, we've continually developed innovations to ensure the highest level of support in the industry for our customers."

PAETEC has three diverse Network Operations Centers (NOCs) in Rochester, NY; Charlotte, NC, and Cedar Rapids, IA, to support its nearly 50,000 business customers nationwide. The NOCs consist of highly skilled technicians who need to complete a certification program to advance through four levels of proficiency. The NOC career progression ensures job satisfaction, as well as the unmatched excellence of every technician who interfaces with customers.

"Delivering unmatched service is one of the cornerstones of PAETEC's success," said Sharon LaMantia, executive vice president of network operations. "It's this level of service which was recognized by the Stevies that keep our customers with us."

The awards are presented by the Stevie Awards, which organizes several of the world's leading business awards shows, including the prestigious American Business Awards. More than 500 entries from companies of all sizes and in virtually every industry were submitted to this year's competition. Details about the Stevie Awards for Sales and Customer Service and the list of honorees in all categories are available at www.stevieawards.com/sales.

In addition to the receiving the award for Back Office Customer Service Department of the Year, PAETEC's Los Angeles-based Shann Spencer was also a finalist in the "Sales Director of the Year" category.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

About The Stevie Awards
Stevie Awards are conferred in four programs: The American Business Awards, The International Business Awards, The Stevie Awards for Women in Business, and The Stevie Awards for Sales and Customer Service. Honoring organizations of all types and sizes and the people behind them, the Stevies recognize outstanding performances in the workplace worldwide. Learn more about The Stevie Awards at www.stevieawards.com.

Sponsors of the third annual Stevie Awards for Sales & Customer Service are John Hancock Mutual Funds, Sales Partnerships, and ValueSelling Associates.

Conference Call details are as follows:
Call Date: Feb. 26, 2009
Call Time: 9:00 a.m. ET
US/Canada Dial in: (800) 597-1926
International: (617) 597-5525
Passcode: 56281823
Webcast: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=190031&eventID=2096234.

Replay details are as follows:
Replay Dates: Feb. 26, 2009, 12:00 p.m. through Mar. 12, 2009
US/Canada Replay Dial in: (888) 286-8010
International Replay Dial in (617) 801-6888
Replay Passcode: 77810866
Replay Webcast: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=190031&eventID=2096234.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

"This aggressive integration plan was essential to ensure the highest benefit for our customers, while further driving efficiency for our back office," said E.J. Butler, chief operating officer. "We're now one of the few carriers able to offer a consistent product portfolio nationally."

The integrated product portfolio, which is available on a single invoice nationwide for all new customers, provides:

The company's broad product portfolio includes productivity-enhancing services such as MPLS VPN (Multi-Protocol Label Switching Virtual Private Network, to cost-effectively manage bandwidth and connect multiple locations), Hosted and Managed CPE Firewall with Unified Threat Management (to protect corporate data and networks from malicious attacks), Dynamic IP with SIP Trunking and Dynamic IP with Virtual Telephone Numbers (to converge data and voice communications on a single circuit to reduce expenses and enable new communications capabilities).

"Most of our competitors are regional in nature or don't have this breadth of personalized communication solutions," said John Chapman, senior vice president of marketing. "Our integrated product portfolio, combined with our national network footprint and unmatched service, has made PAETEC the premier alternative to incumbent local phone companies."

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

The Allworx 9224 Phone is today's premier high-fidelity wideband phone bringing the latest advancements in IP telephony to today's business leaders. Supporting between 24 and 96 programmable function keys (PFK's) with the additional Tx 92/24 Expander units, the Allworx 9224 can support up to 96 PFK's and deliver a multitude of call appearances, line appearances, speed dials, busy lamp fields and an array of other functions.

Allworx will also be offering a "sneak-peak" of the new Allworx System Software 7.0, currently scheduled for channel availability in Q2 2009. The Allworx System Software 7.0 release brings the following capabilities to the Allworx family of telephone systems:

"In today's economic environment, Allworx is more committed than ever to delivering world-class communications capabilities with the greatest value at the lowest installed cost in the industry," said Jeff Howe, the newly appointed President of Allworx. "We believe our new lineup of products and software enhancements demonstrates that commitment to our customers and to our loyal channel partners."

INTERNET TELEPHONY Conference & EXPO, is the world's largest and best-attended IP Communications trade show. At the 2008 east coast event last January, the show drew over 7,000 buyers and sellers of IP Communications products and services. The show in January will mark the 10th anniversary and be the 19th INTERNET TELEPHONY Conference & EXPO, and TMC once again projects total attendance to exceed 7,000.

"Allworx' participation at INTERNET TELEPHONY Conference & EXPO exemplifies why this show is widely recognized as the #1 venue where service providers, enterprises, government agencies, developers and resellers gather to learn about the benefits inherent in IP Communications products and services," said Rich Tehrani, TMC President. "The evolution in this industry has been monumental and it still continues to grow. We are proud to have Allworx and its new 9224 IP phone and System Software 7.0 as a key part of this year's program."

For additional information on Allworx, please visit our website at www.allworx.com.

About Allworx
Allworx, a wholly owned subsidiary of PAETEC Holding Corp., develops award winning, phone & network systems for small-to-medium sized businesses through a network of Authorized Resellers. The product line includes the Allworx 6x and 24x systems and Allworx 9224 phone and Tx 92/24 Expander, 9212 and 9202 phones along with a series of software options. By combining the advanced features of today's VoIP systems with the key system features SMBs have grown to rely on, Allworx systems are ideal replacements for the millions of aging (TDM) PBX and key phone systems in use today. Allworx' Consulting Division delivers elite software and digital hardware engineering services to both large and small companies who want to enhance and compliment their research and product development capabilities. For more information please visit www.allworx.com.

"This new Portland expansion represents the entrance into one of the last major regions for PAETEC," said Regi Scales, President of the West Region. "I expect PAETEC's unique communication solutions and unmatched service to be very well received by the innovative, high-tech business environment of the Pacific Northwest."

PAETEC is one of the largest competitive telecommunication carriers in the nation, with well over $1 billion in revenue, and serving medium to large businesses including universities, hospitals and government agencies.

The company's broad product portfolio includes services such as MPLS VPN to cost-effectively manage bandwidth and connect multiple locations, and VoIP to gain the maximum benefits of IP-based communications.

PAETEC leverages and combines individual products to create comprehensive solutions to address requirements in the areas of:

PAETEC can tailor solutions for large enterprises with multiple locations inside Oregon and across state boundaries, as well as small and medium-businesses with a single location.

"In a difficult economic environment, our solutions are especially attractive to businesses here in the Northwest," said Pam Gottlieb, PAETEC's Regional Director for Oregon. "Our broad portfolio of services and unique programs like Equipment for Services can help businesses achieve some of their IT goals while minimizing the painful capital expense." PAETEC's Equipment for Services program can subsidize important office equipment such as a phone system, server or even software licenses.

The greater-Portland region is among the 25-largest US Metropolitan Statistical Areas according to the US Census Bureau, and is part of PAETEC's coverage among 80 of the top 100 markets which PAETEC serves. For more information about PAETEC services in Oregon, please contact the Portland office at 503.974.5047.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

Dan Reinbold was named SVP and President of the Central Region. He will be responsible for direct and channel sales, account development and operations in 13 central U.S. states. Reinbold is a veteran sales and training leader, receiving national recognition in 2007 as Sales Trainer of the Year by Selling Power Magazine, and has lead PAETEC's training department to Training Magazine's Training Top 125 for 2006, 2007 and 2008.

John Chapman was also named Senior Vice President and will oversee marketing, training, product development and corporate strategy. Additionally, in the role, he will be responsible for corporate quality, customer advocacy and business development. Chapman, who joined PAETEC in 2003, brings 30 years of telecommunications and information technology experience, including experience at Rochester Telephone and Global Crossing. During Chapman's tenure as Vice President of Product Development, PAETEC received numerous accolades and awards, including Most Innovative Product for SIP Trunking, the IP Innovator Award from Cisco, and was named Most Innovative Competitive Carrier by New Paradigm Resources Group.

PAETEC announced added responsibilities for four Senior Officers including Mario DeRiggi, who will now serve as EVP and President of National Sales and Service. In this role, DeRiggi will oversee sales nationally as well as customer service and sales operations.

John Leach, SVP and President of the South Region, will retain his current responsibilities and will additionally be the overall leader for PAETEC's Agent Channel Program. Leach brings over a decade of channel experience including channel leadership positions at BTI (now Deltacom) and Covista.

Kevin Errity most recently served as Senior Vice President overseeing the Advanced Solutions Group for PAETEC, including PINNACLE Software, Allworx, Integrated Solutions Group and the ISP, FASTNET. In his new role as SVP and President of the East Region, Errity will retain responsibility for FASTNET and PINNACLE Software, and add responsibility for direct and channel sales, account development and operations for the East Region including New England, NY, PA, MD, DC and VA.

Reginald Scales will now be SVP and President of the West Region. Scales who previously served as Senior Vice President overseeing direct sales in the West Region, will now also lead channel sales, account development and operations in areas including TX, CO, ID and areas west.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications for business-class customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.