Sage Telecom President and CEO Named 2001 Entrepreneur of the Year; Dennis M. Houlihan Selected as Emerging Companies Winner of the Ernst & Young Entrepreneur of the Year Program

Business Wire, June 18, 2001

Business Editors & High-Tech Writers

DALLAS--(BUSINESS WIRE)--June 18, 2001

Sage Telecom, Inc., a rapidly growing competitive local telephone service provider, announced today that Dennis M. Houlihan, President and CEO of Sage Telecom, has been named 2001 Entrepreneur of the Year in the Emerging Companies category as part of the Ernst & Young Entrepreneur of the Year Program for the Southwest Region.

Mr. Houlihan received this distinguished honor at the Ernst & Young Entrepreneur of the Year regional awards banquet Saturday evening, June 16, 2001. Regional award winners go on to compete at the National Entrepreneur of the Year International Conference November 15-18 in Palm Springs, Calif. At the Conference, award winners will be inducted as lifetime members into the Entrepreneur of the Year Institute.

Entrepreneur of the Year winners are selected by an independent panel of judges composed of fellow entrepreneurs and business and academic leaders. As one of the most prestigious award programs for entrepreneurs, the Ernst & Young Entrepreneur Program recognizes individuals who have demonstrated excellence and success in areas such as innovation, financial performance, and personal commitment to their businesses and communities.

As part of the Entrepreneur of the Year Program, the history of the nominee's company is thoroughly evaluated. This assessment includes the source of the idea for the original strategy, the financial risk involved, innovative approaches to marketing and management, the company's current stage of development and future prospects. Part of the evaluation includes a description of the company's products and/or services, and how the company demonstrates excellence in its field or industry.

Sage Telecom, Inc. was founded in 1996 and is headquartered in Allen, Texas, a suburb located in the Dallas Telecom Corridor. Sage is a rapidly growing provider of competitive local exchange services, long distance, and other enhanced services. In 2000, Sage was awarded the No. 1 ranking in the FastTech 50 as the fastest growing high-technology company in the Dallas/Ft. Worth Metroplex. The Company serves 200,000 residential and small business customers outside major metropolitan areas throughout the State of Texas.

For further information, please see the Company's Web site at www.sagetelecom.net or call 1-888-972-SAGE.