Sage Telecom Continues to Add New Residential and Small Business Telephone Customers; Growth Continues as Competitors Leave Marketplace

Business Wire, June 25, 2004

DALLAS -- Sage Telecom announced early this morning that it will continue to add new local and long distance customers in the eleven states where it currently does business. Included are California, Illinois, Indiana, Kansas, Michigan, Oklahoma, Texas and Wisconsin. Sage will also actively market its services in Arkansas, Missouri and Ohio, three of the states in which AT&T Corp. has announced it will stop selling traditional local and long distance residential services.

Based on Sage's recently announced private agreement with SBC, Sage plans to continue its program of controlled expansion and growth in both the residential and business telephone segments. The agreement between Sage and SBC assures the continuation of competitive choices and innovative services in areas where SBC is the incumbent telephone company.

Sage is also expanding into data services and will introduce high speed internet service to many of its rural markets.

Sage Telecom currently serves over 550,000 residential and small business customers throughout the U.S. For more information about Sage Telecom services, consumers can call 1-888-972-7243 during normal business hours Monday through Saturday or visit the Sage Telecom website (www.sagetelecom.net).