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 standardsTelePacific 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 fiber 1,412 miles statewide fiber 25,000 miles fiber strands

331 collocations 514 wire centers

8

Six Companies Rolled into One

Marked entrance into Central Valley$31M in revenues

Positive EBITDA from day

Pac-West TelecommSME Business

2005

$25M in assets1,200 customers2 Lucent 5ESSs

ATGBay Area

2002

TelePacificCommunications

1998

63,000+ customers384,000+ access lines$190.5M in revenues

MpowerCommunications

2006

Completes central California footprint$23M in revenues5,000 customers

61,000 ALEs2 switches

ArrivalCommunications

2007

SONET fiber network with fully-survivable metropolitan fiber rings in six markets

128 on-net fiber-lit commercial buildings Wholesale line of business

MpowerAcquires 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