MGC Communications Announces Second Quarter Update; Revenues Increase 37%; Lines Sold and Installed Increase 38%; Lines Provisioned Increase 40% - Company Financial Information

Cambridge Telcom Report, July 12, 1999

MGC Communications, Inc., ("MGC" or "the Company"), (Nasdaq: MGCX) Wednesday announced its line growth, revenue growth and network expansion status for the second quarter of 1999. As of June 30, 1999, the Company had sold and installed 109,480 lines, of which, 89,535 were in-service, representing a 38% and 37% increase, respectively over March 31, 1999. During the second quarter, MGC installed and placed in-service 24,388 lines; a 40% increase over the 17,403 lines provisioned and placed in-service during the quarter ended March 31, 1999. All of the line additions for the second quarter were "on-switch," not resale. As a result of this line growth, second quarter 1999 revenue increased 37% over first quarter 1999 revenue to $11.5 million. Additionally, as of June 30, 1999, the Company had established two hundred forty eight (248) collocation sites nationwide providing the Company with access to approximately 13.7 million addressable lines.

Headquartered in Las Vegas, Nevada, MGC provides local phone service, custom calling features, long distance and Internet services to small business and residential customers in Las Vegas, Atlanta, Chicago, southern Florida and selected areas of southern California, including Los Angeles and San Diego. Further information about MGC can be found at www.mgci.com