New Edge Networks

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New Edge Networks

• Quality broadband connectivity - anywhere you
  need it..

December 2003
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New Edge Networks Overview

• New Edge Networks is a facilities based Managed
  Network Service Provider (MNSP) providing
  broadband connectivity services to carrier and
  business customers. Our focus is on domestic and
  international broadband solutions at the network
  edge.
• Headquarters Vancouver, WA
• Incorporated June 1999
• Employees 300
• Service Area 360 non metro cities, 36 metro
  areas

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What we do?

• We provide quality broadband for businesses and
  carriers.
• One Stop Shop - Our experience in installing and
  managing networks on New Edge facilities and
  virtually every carrier and RBOC in the US allows
  us to be the low cost producer of one stop
  solutions for network connectivity and internet
  for enterprise, carriers and small and medium
  businesses, particularly those customers who have
  complex requirements that span multiple carriers,
  multiple technologies and multiple geographies.
• Broadband Agnostic - We provide a wide range of
  broadband alternatives at the edge of the
  network that meet the needs of an individual
  enterprise for their specific service application
  and cost requirements.

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What Do Broadband Business Customers Want?

• Dont understand complexities of telecom nor
  do they want to.
• Work with someone they like and trust
• Solid service with a live body to call
• Will pay a small premium
• Low entry cost
• Strong service and support
• Customized features and speeds
• Top verticals for access and WAN - real estate,
  legal, medical/dental, print shops, retail,
  eng/consulting, SOHO/Telecommuters.
• TransEdge - 1 Broadband Retail ISP at
  www.dslreports.com

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Our Value Proposition
SECRET SAUCE

• Telecom Challenge 2000 2010
• Increasing importance of information for all
  business models
• Telecom complexity
• No single carrier covers all locations cost
  effectively
• Multiple technology solutions for diverse
  customer applications
• Limited to no broadband access in non metro
• Customer Build versus Buy telecom decision
• New Edge Networks - One stop network shopping
  Broadband anywhere
• Managed, secure, support
• Provisioning and project management
• EDI/API ordering
• Carrier contract administration (CLEC in 49
  states)
• User Policy Management
• One bill

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UNIQUE STRATEGY DEMONSTRABLE RESULTS
Building Blocks
Results

• Largest FR/ATM networks in US
• focus on business and carrier broadband
• focus on data services
• EDI provisioning with all carriers
• Multiple, scalable distribution channels

• 100 million in annualized revenues in 4 years
• 12 consecutive quarters of sequential strong top
  line growth
• EBITDA positive
• Cash flow positive
• Over 40,000 small and medium enterprise customers
• Low churn

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What about Telecom for the In Between Markets?

• Broadband - vital for economic well being and
  quality lifestyle. The further you are are from
  a metro the more you appreciate it.
• Major Telcos and Cable TV players invest in dense
  metro markets. Best return on capital investment
  (Top 200 cities)
• Rural areas are served by independent telcos
  supported by universal service funds (Bemidgi,
  Dillingham, Forks).
• What about the in between cities????
• Tyler, Walla Walla, Brainerd, Jackson Hole,
  Winona,
• Digital telephone switching was 10 years behind
  metro
• Internet access 3-5 years behind metro
• New Edge Networks - 350 non metro markets
  opportunities

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Broadband at the Edge
Non-Metro
Cable
Wireless
RBOC ADSL
Fiber
Metro
Covad XDSL
Consumer
Business
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How Businesses/Carriers Use our One Stop
Services

• Chain of retail stores use our ATM, frame or
  frame over DSL service for point of sale
  verification (Annas Linens, Meijer Stores)
• Multi location service businesses use our network
  to create WAN/VPN between their locations (B of
  A, Armored Transport, Discount Tire, Wells Fargo
  Bank)
• Single site uses our dedicated broadband internet
  access service for dedicated high speed internet
  access (fractional T-1, Bills Coin and Stamps)
• RBOCs use us to provide out-of-region access for
  enterprise customers
• National carriers use us to provide offnet access
  (ATT, MCI)
• International carriers use us for domestic U.S.
  terminations
• Telecommuters use our broadband access service to
  connect to their corporate VPN

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Opportunities for Partnership

• We partner with non metro ISP to provide
  broadband coverage and IP connectivity to
  business customers
• If you have a city wide fiber network, we can
  provide the broadband on-ramps and off-ramps and
  provide connectivity back to the public internet
• If you do not have cable or telco broadband we
  will build in your area (5k MRR, 50k NRC).
• If you want to sign up your local business
  customers through an affiliate program, we can
  set you up as a New Edge dealer.

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Full Range of Better Business Broadband
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Riding the Right Broadband Curves
Broadband Demand / Telecom Complexity
Cost of Equipment/Backhaul

Cost of loops/install
Time
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Why Partner with New Edge Networks!

• Proven Broadband Demand real growth!
• Proven Technologies
• Proven Wholesale and Retail Business Models
• One stop coverage of non metro and metro
  geographies, carriers, technologies.
• Customers - Fortune 1000 and the largest carriers
• Proven execution and financial staying power!