FiberNet to Build SONET Fiber Optic Telecommunications Infrastructure for Chrysler Center

Business Wire, August 11, 1999

NEW YORK--(BUSINESS WIRE)--August 11, 1999--

FiberNet Telecom Group, Inc. (OTCBB: FTGX) announced today that it has entered into exclusive agreements to build and operate a state of the art, broadband fiber optic transmission network within The Chrysler Center, now undergoing a major redevelopment by its owner and manager, Tishman Speyer Properties.

FiberNet Telecom Group, Inc. is a facilities-based carrier which designs, builds and intends to operate intra-building and metropolitan area broadband networks in large commercial multi-tenant buildings in national Tier 1 markets. FiberNet's initial plan is to focus on New York City and pursue a "carrier's carrier" marketing strategy, selling primarily to telecom carriers and other communications service providers. The Company has licensing agreements with national building owners for the construction and implementation of intra-building fiber optic transport facilities, including basement colocation space.

FiberNet enables the seamless transmission of data, voice and video over a 100% fiber optic, fully redundant, self-healing SONET network that extends from the telecommunication closet on the customer's floor to a carrier interconnection point on a metropolitan area fiber loop. By offering carrier class backbone reliability directly to the customer premise, FiberNet is seeking to set a new carrier standard for the local loop.

FiberNet has the exclusive right to use up to eight strands (384 fiber-miles) of Metromedia Fiber Network, Inc.'s dark fiber network in the metropolitan New York City area. The Company's network operation center will be located at 60 Hudson Street in New York City.

"FiberNet provides our tenants with greater choice of carriers and cutting edge services by deploying the technological backbone they need in order to be competitive in tomorrow's workplace," said Geoffrey P. Wharton, Senior Managing Director of Tishman Speyer Properties.

The deployment of Fiber Net's fiber optic transmission network is part of Tishman Speyer's ongoing redevelopment and renovation of the entire Chrysler Center. Working with world-renowned architect Philip Johnson, Tishman Speyer is now in the process of expanding The Chrysler East Building by 130,000 square feet, transforming it into a more efficient, center-core building.

Tishman Speyer has also commissioned Johnson to redesign the lobby, the elevator cabs, the building's exterior (which is being clad in glass) and the walk-through connection from The East Building to The Chrysler Building. Johnson has also designed a dramatic and unique crystal structure for the area between these two historic buildings, which will house a world-class restaurant. In addition, Beyer Blinder Belle has been retained for the historic restoration of The Chrysler Building itself.

Tishman Speyer Properties, one of the world's leading real estate owners and developers, operates from its headquarters in New York City with 15 offices and a staff of over 500 professionals worldwide. Among the cities Tishman Speyer maintains offices in are Frankfurt, Berlin, Houston, Washington, London, Paris, Warsaw, Sao Paulo, Los Angeles and Chicago. Tishman Speyer has developed or acquired a portfolio of more than 36.4 million square feet valued at more than $10 billion that includes high-rise office buildings, retail spaces, residential properties and entertainment centers.

FIBERNET NOTE: This press release may contain forward-looking statements. Any and all of our forward-looking statements in this press release or in any other public statements we make may turn out to be wrong. They can be affected by inaccurate assumptions we might make or by known or unknown risks and uncertainties, including, without limitation, the following: availability of capital; the risks associated with significant indebtedness; the dependence on key personnel of the Company; the demand for telecom services; substantial competition; regulatory developments; and other factors affecting the Company's prospects described in the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 31, 1999, and in its other public filings.