DSL.net Announces Agreement with ERG Transit Systems to Provide Services for WMATA; Company to Provide Broadband Service for ERG's Smart-Card Software

Business Wire, April 5, 2005

NEW HAVEN, Conn. -- DSL.net, Inc. (AMEX: BIZ), a leading nationwide provider of broadband communications services to businesses, said today that it has reached an agreement with ERG Transit Systems, a world leader in smart-card fare-collection systems, to provide broadband and managed services for ERG's state-of-the-art collection system for the Washington Metropolitan Area Transit Authority (WMATA), the second largest rail transit system and the fifth largest bus network in the United States.

The DSL.net agreement with ERG involves more than 30 T-1 lines, as well as DS-3 lines, that will provide broadband service and redundant backup service to 16 locations and a command center for WMATA rail and bus services throughout Washington, D.C., and several surrounding counties. When fully operational late this year, the ERG smart-card fare-collection system will handle approximately 550 million transactions or more per year. Metrorail and Metrobus serve a population of 3.5 million within a 1,500 square-mile area.

"We are very pleased that a prestigious global company like ERG has selected DSL.net as its broadband provider for this leading-edge smart-card project," said Diane Gongaware, senior vice president of sales and marketing at DSL.net. "This agreement not only adds revenue and margin, it enhances our position in the managed services and network applications sector where reliability and technical expertise play a key role in winning new contracts. In addition, we hope this agreement will lead to expanded opportunities with ERG as the company extends its customer base into the mid-Atlantic and Northeast regions."

Mike Nash, global head of operating companies for ERG Transit Systems, said the ERG smart-card fare-collection system is "designed to integrate complex hardware from a variety of providers and serve the fast-paced, high-traffic WMATA rail and bus network. DSL.net provides us with a high-quality and cost-effective broadband solution, and we welcome their participation in this high-profile project."

The Washington Metropolitan Area Transit Zone consists of the District of Columbia, the cities of Alexandria, Falls Church and Fairfax and the counties of Arlington, Fairfax and Loudoun, and the political subdivisions of the Commonwealth of Virginia located within those cities, and the counties of Montgomery and Prince George's in the State of Maryland and political subdivisions of the State of Maryland in those counties. Overall, 42 percent of those working in the center core -- Washington and parts of Arlington County -- use mass transit.

ERG Group is the world leader in the development and supply of integrated fare management and software systems for the transit industry, and for its smart-card systems and services. The Group has installed systems in major cities such as Hong Kong, Melbourne, Rome, Singapore and San Francisco, with installations in progress in Stockholm, Sydney, Las Vegas, Seattle and Washington, D.C. ERG has delivered systems that support more than 20 million smart cards currently in circulation and handle approximately 5 billion transactions per year. ERG is an Australian-based company, listed on the Australian Stock Exchange, with 900 employees in 11 countries.

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, DS-3 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 may contain 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, and, to the extent it does, 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 associated with DSL.net's business 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 raise sufficient additional capital on acceptable terms, or at all, to finance continuing operations or DSL.net's pursuit of strategic opportunities; (iv) DSL.net's failure to generate sufficient revenue, contain certain discretionary spending, achieve certain other business plan objectives, or obtain additional debt or equity financing could have a material adverse effect on DSL.net's results of operations or financial position, or cause it to restructure its operations to further reduce operating costs or to cease operations; (v) DSL.net's ability to maintain compliance with the American Stock Exchange's continuing listing requirements, which failure could adversely impact the pricing and trading of DSL.net's common stock; (vi) regulatory, legislative and judicial developments, which could adversely affect the way DSL.net operates its business or increase its costs of operations; (vii) risks associated with potential financing, strategic and/or merger and acquisition transactions, including, without limitation, difficulties in identifying and completing any of such transactions, integrating businesses or assets and realizing the revenue, earnings or synergies anticipated from any transactions; (viii) competition; (ix) the marketplace's receptiveness to DSL.net's offering of integrated voice and data services; (x) DSL.net's ability to recruit and retain qualified personnel; and (xi) DSL.net's dependence on third-party providers to supply it with local DSL and T-1 facilities in areas where it has not deployed its own equipment. 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, 2004, which has been filed with the Securities and Exchange Commission.