TelePacific Communications Completes Acquisition of Pac-West Telecomm's Small and Medium Size Business Customer Base

Los Angeles, CA, 3/11/2005 - TelePacific Communications, a leading provider of business telecommunications solutions, announced that it has completed the acquisition of the small-to-medium enterprise (SME) customer base of Pac-West Telecomm for approximately $27 million.

TelePacific has acquired Pac-West's small and medium size business accounts, based in California and Nevada, representing more than 2,500 accounts and all assets primarily associated with serving this customer base.

The acquisition enables TelePacific to expand into California's Central Valley markets, significantly expanding its market coverage across California. The expansion will include a local presence in Sacramento, Stockton, Modesto, Fresno, Chico, and Bakersfield. The Company will now serve an even greater number of business customers with local and long distance voice, dedicated Internet access, private networking, and data transport services as well as bundled voice and Internet solutions.

The transaction establishes TelePacific as the leading business oriented Competitive Local Exchange Carrier in California and Nevada, with more than 325,000 lines of service and over $170 million in annual revenues from retail services on a run-rate basis.

"Through this transaction, TelePacific has obtained a very high-quality, low-churn customer base. Moreover, we are instantly able to create brand name recognition in a major part of the state of California where we were not present yesterday," said Dick Jalkut, TelePacific's president and CEO. "In this expanded territory, TelePacific is well positioned to offer a very attractive alternative to business customers who are looking for a choice."

Jalkut said that TelePacific would also benefit by leveraging more customers across its existing network infrastructure. Additionally, by expanding its optical and digital networks into California's Central Valley to service new customers, the acquisition would accelerate TelePacific's organic growth capabilities.

For Release: Immediately
Date: 3/11/2005
Contact: Rebecca Levin,
Phone: 800-865-7397

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