DSL.net Maintains Nasdaq SmallCap Market Listing Through Minimum Bid-Price Rule Extension

Business Wire,  Sept 16, 2003  

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Business Editors

NEW HAVEN, Conn.--(BUSINESS WIRE)--Sept. 16, 2003

DSL.net, Inc. (NASDAQ: DSLN), a leading nationwide provider of broadband communications services to businesses, today announced that it has been granted an extension of the grace period for regaining compliance with the Nasdaq SmallCap Market's minimum bid price rule, which is required for continued listing.

A Nasdaq Listing Qualifications Panel determination gives DSL.net until Nov. 17, 2003, to comply with the $1.00 closing bid price per-share requirement as set forth in the Nasdaq's Marketplace Rule 4310(c)(4). In order to continue its SmallCap Market listing, the Company must maintain by that date a closing bid price of at least $1.00 per share and, immediately thereafter, a closing bid price of $1.00 per share for a minimum of 10 consecutive trading days.

"We are very pleased that we have been able to maintain our Nasdaq SmallCap Market listing for our stockholders," said David F. Struwas, chairman and chief executive officer of DSL.net. "We believe that our progress during the first half of 2003 demonstrates our ability to grow our business and build shareholder value."

In granting DSL.net an extension on its request for continued listing, the Nasdaq panel acknowledged that the Company also "would be eligible for an additional period within which to satisfy the bid price requirement" under a Nasdaq proposal currently before the Securities and Exchange Commission (SEC), if such proposal were approved. SEC approval would mean that SmallCap Market issuers may receive up to two additional 180-day periods within which to regain compliance with the minimum bid price rule - provided that certain other requirements are satisfied.

About DSL.net

DSL.net, Inc. is a leading nationwide provider of broadband communications services to businesses. The Company combines its own facilities, nationwide network infrastructure and Internet Service Provider (ISP) capabilities to provide high-speed Internet access, private network solutions and value-added services directly to small- and medium-sized businesses or larger enterprises looking to connect multiple locations. DSL.net product offerings include T-1 and business-class DSL services, virtual private networks (VPNs), frame relay, Web hosting, DNS management, enhanced e-mail, online data backup and recovery services, firewalls and nationwide dial-up services; as well as integrated voice and data offerings in select markets. For more information, visit www.dsl.net, e-mail info@dsl.net or call 1-877-DSL-NET1 (1-877-375-6381).

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to a variety of risks and uncertainties, many of which are beyond DSL.net's control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. In particular, the risks and uncertainties include, among other things, (i) fluctuations in DSL.net's quarterly operating results, which could adversely affect the price of its common stock; (ii) DSL.net's unproven business model, which may not be successful; (iii) DSL.net's ability to execute its business plan in a timely manner; (iv) the possible removal of DSL.net's common stock from the Nasdaq SmallCap Market, which removal could adversely impact the pricing and trading of DSL.net's common stock; (v) the possibility that DSL.net's common stock may be removed from the Nasdaq SmallCap Market even if the closing bid price of its common stock is at least $1.00 per share on a date on or before November 17, 2003, and for the ten (10) consecutive trading days thereafter; (vi) regulatory, legislative and judicial developments, which could adversely affect the way DSL.net operates its business; and (vii) the risk that DSL.net's stockholders do not approve the matters required for the issuance of the remaining warrants to purchase shares of DSL.net's common stock in the Deutsche Bank-led financing, or that other conditions to the issuance of such warrants are not satisfied or waived by January 14, 2004, in which case DSL.net may be obligated to then repay the $30 million raised in such financing. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. DSL.net undertakes no obligation, and disclaims any obligation, to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise. For additional information regarding these and other risks faced by DSL.net, see the disclosure contained under "Risk Factors'' in DSL.net's Annual Report on Form 10-K for the year ended December 31, 2002, which has been filed with the Securities and Exchange Commission.