KMC Telecom Completes Successful Migration to Transaction Network Services' SS7 Network

Business Wire, July 7, 2004

RESTON, Va. -- KMC Telecom Migrates to TNS to Consolidate SS7 Network Services, Capture Significant Cost Savings, and Bring Additional Levels of Service to Customers

Transaction Network Services, Inc. (TNS), a subsidiary of TNS, Inc. (NYSE:TNS), and KMC Telecom today announced that the migration of 49 KMC switches to the TNS Signaling System 7 (SS7) network is now complete.

KMC Telecom, a nationwide provider of next-generation telecommunications infrastructure and services at the network edge, worked closely with TNS to consolidate their SS7 signaling and intelligent network services. TNS' unique distributed network architecture allows KMC Telecom to connect to the TNS SS7 network through more than 20 mated pairs of TNS Signal Transfer Points (STPs) in major U.S. cities. With this distributed architecture, KMC Telecom can leverage network capabilities while reducing costs.

"With TNS' distributed service configuration, we are working efficiently with a single SS7 services provider and bringing higher levels of service to our customers," said Larry Salter, Executive Vice President of Network Services, KMC Telecom. "After evaluating a number of comparable solutions, it was clear that TNS' customized approach to service delivery enables the company to do what their competitors can not - consolidate all of our SS7 needs while allowing us to capture significant cost savings. The completion of the switch migration program shows this is truly the case."

TNS' SS7 network provides the technology, diversity and capacity necessary to manage the traffic requirements of growing carriers. TNS manages and supports a full range of SS7 services for its carrier customers, providing nationwide LATA coverage and access to a wide array of Advanced Intelligent Network (AIN) services such as wired and wireless Local Number Portability (LNP), Caller Name (CNAM), 800, and Custom Local Area Signaling Services (CLASS).

"The completion of this lengthy and complex implementation highlights TNS' strength in the signaling services sector," said Barry Toser, Senior Vice President and General Manager, TNS Telecommunication Services Division. "Leveraging our technical expertise and customized approach to service delivery, we are helping KMC build a competitive advantage in the market while increasing their network's potential for profit. We will continue to work closely with KMC on business and network intelligence initiatives that employ programmable features of the TNS SS7 technology."

TNS' Telecommunication Services Division provides a full range of SS7, validation and fraud control, inter-carrier billing, custom network engineering and professional services to wireline and wireless carriers.

About KMC Telecom

KMC Telecom, LLC is a nationwide provider of next-generation telecommunications infrastructure and services at the network edge, providing fiber-based, integrated data, voice and Internet infrastructure communications services. KMC offers these services to businesses, governments and institutional end-users, Internet service providers, long distance carriers and wireless service providers. KMC's business has two distinct components: the Advanced Communications Services (ACS) division, serving communications-intensive customers in markets with a population between 100,000 and 750,000 and the Data Services division, through its data subsidiaries, providing data services on a nationwide basis.

About Transaction Network Services, Inc.

Transaction Network Services is one of the leading providers of business-critical, cost-effective data communications services for transaction-oriented applications. TNS provides rapid, reliable and secure transaction delivery platforms to enable transaction authorization and processing across several vertical markets and trading communities.

Since its inception in 1990, TNS has designed and implemented multiple data networks, each designed specifically for the transport of transaction-oriented data. TNS' networks support a variety of widely accepted communications protocols and are designed to be scalable and accessible by multiple methods. TNS' network technologies have been deployed in the United States and internationally, and TNS' network has become a preferred network servicing the trading community, wireless and wireline carriers, and the card processing and dial-up automated teller machine markets. For further information about TNS' transaction solutions, please refer to www.tnsi.com.

This press release may contain various remarks about the future expectations, plans and prospects of TNS that constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. TNS' actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed under the heading "Risk Factors" in the company's prospectus dated March 16, 2004, which is on file with the U.S. Securities and Exchange Commission and may be accessed at www.sec.gov or the company's investor relations web page available at www.tnsi.com. TNS disclaims any obligation to update or correct any forward-looking statements made herein due to the occurrence of events after the issuance of this press release.