eLEC Communications Corp. Announces the Acquisition of Peconic Telco, Inc., a New York-Based Telecommunications Equipment Vendor and Service Company

Business Wire, Nov 18, 1999

NORWALK, Conn.--(BUSINESS WIRE)--Nov. 18, 1999--

Peconic is Viewed as a Strategic Investment in Planned Deployment Of

DSL and VoDSL Services

eLEC Communications Corp. announced today the acquisition of 100% of Peconic Telco, Inc. Peconic is a Long Island, New York-based telecommunications equipment vendor and service organization. Terms of the acquisition were not disclosed.

"We are pleased to have completed the acquisition of Peconic Telco," said Paul Riss, CEO of eLEC. "Peconic will provide eLEC with many additional capabilities, which will be invaluable to our continued growth and our planned expansion into DSL and VoDSL services."

Mr. Riss continued, "With the acquisition of Peconic, we now have our own service providers that can sell, install and service customer premise equipment (CPE). We can now expand our marketing programs to include larger and more complex accounts and include equipment sales and rentals in our bundled product offerings. In addition, as we begin to install DSL service and eventually migrate our customers to a VoDSL platform, having our own trained technicians at the customer's premise will prove to be invaluable."

Eric Izzo, CEO of Peconic, stated, "I am excited about working with the team at eLEC. We will now be able to bundle local, long distance, Internet access and Web design services for Peconic's existing customer base while at the same time providing CPE sales and support to eLEC's customer base. Our customers can now truly have a single point of contact for all their communications needs."

eLEC Communications Corp. is a publicly traded local telecommunications company that is taking advantage of the convergence of the current and future competitive technological and regulatory developments in the Internet and telecommunications markets through the integration of its telecommunications and Internet services. The company provides an integrated suite of communications services to small and medium-sized business customers, including local, long distance, dial-up access, dedicated access, and Web site design and hosting.

This release contains forward-looking statements that involve risks and uncertainties. The Company's actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, among others, availability of management; availability, terms, and deployment of capital; the Company's ability to successfully market its services to current and new customers, generate customer demand for its product and services in the geographical areas in which the Company can operate, access new markets, negotiate and maintain suitable reseller and interconnection agreements with the incumbent local exchange carriers, and negotiate and maintain suitable vendor relationships, all in a timely manner, at reasonable cost and on satisfactory terms and conditions, as well as regulatory, legislative and judicial developments that could cause actual results to vary in such forward-looking statements.