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CapRock, Rhythms Ink Strategic Agreement To Provide DSL Services in Southwest; Alliance Brings High-Speed, Business-Class DSL to Southwest

Business Wire,  July 18, 2000  

Business & Technology Editors

DALLAS & ENGLEWOOD, Colo.--(BUSINESS WIRE)--July 18, 2000

CapRock Communications Corp. (Nasdaq:CPRK) and Rhythms NetConnections Inc. (Nasdaq:RTHM) today announced an agreement to provide high-speed digital subscriber line (DSL) services to small and medium-sized business customers throughout six states in the southwestern United States.

Rhythms, an international provider of broadband communication services, and CapRock, a leading integrated communications provider in the Southwest, are working to accelerate and expand the availability of high-quality broadband services throughout the Southwest.

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The collaboration will couple Rhythms' national DSL network with CapRock's extensive Southwestern voice, data and fiber networks. Business customers in primary, secondary and tertiary markets throughout Texas, Louisiana, Arkansas, Oklahoma, New Mexico and Arizona will have unprecedented access to business-class DSL services, premium bandwidth, speed and performance. The alliance will achieve one of the largest competitive DSL Southwestern footprints of any national or regional provider.

"Rhythms and CapRock have very similar network designs which will help deliver a consistent look and feel for DSL services to all customer segments across the Southwest," said Scott Chandler, senior vice president of global business development at Rhythms. "This alliance is unique and results from CapRock and Rhythms having complementary growth strategies," said Leo J. Cyr, CapRock president and COO. "CapRock will be supported by Rhythms' high-speed, business-class DSL service, which will also further enhance CapRock's strategy of providing to business customers flexible and integrated local, long distance, data, and Internet solutions, supported by CapRock's continual commitment to customer service. Our DSL customers will enjoy true business-class service, hassle-free service delivery, and consolidated billing."

CapRock will initially resell Rhythms' DSL services in CapRock's markets that are currently operational within the Southwest region, including Dallas/Fort Worth, Houston, San Antonio and Austin, Texas; and Phoenix. CapRock will serve as a retail distributor for the full suite of Rhythms services for small carriers throughout the Southwest region.

CapRock will introduce DSL service in a number of secondary and tertiary markets by year's end to support this partnership as well as its retail sales activities. Those markets include: El Paso and Victoria, Texas; Tucson, Ariz.; Albuquerque, N.M.; Lafayette, La.; Little Rock, Ark.; and Oklahoma City and Tulsa, Okla.

The strategic relationship allows for CapRock's network to be offered to Rhythms in a seamless manner by interfacing the two companies' networks and utilizing common back-office systems. To reach tertiary markets, the implementation will combine CapRock's integrated voice and data solutions with Rhythms' robust, nationwide DSL network and flexible advanced broadband services.

About CapRock

CapRock is a southwestern U.S. facilities-based integrated communications provider (ICP) offering local, long-distance, Internet, data and private line services to business customers. The company also provides switched and dedicated access, regional and international long-distance, private lines, dark fiber and bandwidth to carrier customers. The company is building a 7,500-mile fiber network, as well as voice and data networks, throughout Texas, Louisiana, Arkansas, Oklahoma, New Mexico and Arizona. For more information, visit CapRock's Web site at www.caprock.com.

About Rhythms

Rhythms NetConnections Inc. (Nasdaq:RTHM) provides DSL-based, broadband communication services to businesses and consumers. Based in Englewood, Colo., Rhythms currently serves 55 markets, covering 92 metropolitan statistical areas (MSAs). Telecommunications services for Rhythms are provided by Rhythms Links Inc., a wholly owned subsidiary of Rhythms. For more information, call 800/RHYTHMS (800/749-8467), or visit the company's Web site at www.rhythms.com.

Statements contained in this news release regarding expected financial results and other planned events are forward-looking statements, subject to uncertainties and risks. Among many factors that could cause actual results to differ materially from those expected include, but are not limited to, the following: the substantial indebtedness of the Company including the interest charges associated therewith and the financial covenants imposed upon the Company by such indebtedness; the Company's ability to successfully, timely and cost-effectively fund and complete its planned growth, including its fiber network; and, competition in the various segments of the communications industry in which the Company seeks to participate. For an expanded discussion on these and additional risks associated with CapRock's business, please see the documents filed by CapRock Communications Corp. with the U.S. Securities and Exchange Commission.