USA Datanet Acquires Matrix Communications Group, Inc.

Move extends geographic reach of USA Datanet Business Services, creates new IP-enabled service offerings for Matrix customers, and establishes synergies for future growth

Syracuse, N.Y.- Nov 3, 2006 - USA Datanet, a leading provider of IP-enabled communications services for commercial, consumer and carrier customers, today announced the acquisition of Matrix Communications Group, Inc., a leading provider of business phone systems, voice and data network installations, structured wiring system design and other telephone products and systems.

Matrix, headquartered in Syracuse with additional offices in Albany and Rochester, has been in business for over 20 years and serves more than 2,500 business customers across New York State. In addition to business phone systems, network installations, and structure wiring design, matrix provides fiber optic cabling and equipment, paging systems, and complete outside plant installations.

Matrix’s base of business customers, operational resources, and expertise in telecommunications, will enable the combined companies to provide a wider array of cutting edge telecommunication services - particularly IP-technology solutions which are transforming the way today’s businesses approach communications.

“The addition of Matrix and all of its core strengths is the first step in our plan to increase USA Datanet’s geographic reach, product depth, and operational capabilities,” said USA Datanet Chairman and CEO David Montanaro.

In May 2006, USA Datanet introduced its Hosted IP Communications Service for businesses in the Central New York market, and announced its intention to expand its offering on a regional basis. Hosted IP-enabled services provide businesses with telephone service and Internet access over a secure, dedicated broadband connection. The service is particularly attractive to small- and medium-sized businesses because it eliminates upfront capital requirements, is simple to manage (the service can be controlled by the customer using a web interface), and provides a platform for future value-added Hosted Communication solutions.

“The advance of Hosted IP-enabled services is changing the way companies evaluate their business technology decisions,” Montanaro said. “With the addition of Matrix, our business customers will now have a single source for finding the best communications solution.”

Along with access to USA Datanet Hosted IP Services, Matrix customers will benefit from other USA Datanet services, such as IP trunking and conference calling.

“The benefits to our existing customers are clear,” said Matrix President Jim Annese. “Our customers gain access to cutting edge IP-technology solutions that are changing the face of telecommunications.”
Matrix’s established presence across New York State provides USA Datanet with a sales and operational infrastructure and greater depth of products and services. The acquisition will add nearly 50 Matrix employees to USA Datanet’s 100 Syracuse-based employees. No change in staffing levels is anticipated.

“I’m excited about the telecommunications expertise and knowledge that Matrix employees bring to our organization, and believe our combined resources gives us a unique competitive advantage in the communications market that will directly benefit our customers,” said John Turner, USA Datanet executive vice president and chief strategy officer.

With over 300,000 registered customers who have remained extremely loyal, USA Datanet has long prided itself on excellence in customer service. This same commitment to customer service is fundamental to Matrix Communications Group’s philosophy, and was a key factor in discussions between the companies. “For us it was important to expand our footprint across New York State, and bring aboard an organization as passionate as we are about servicing our customers,” Turner said. “We found that Matrix Communications shares the same ‘customer first’ focus.”

About USA Datanet
USA Datanet is a leading provider of IP-enabled voice, Internet access and enhanced communications services for commercial, consumer and carrier customers. Founded in 1998, the Syracuse, NY-based company is at the forefront of the development and commercial application of Voice over Internet Protocol (VoIP) and softswitch network technology, a powerful convergence of voice and data that is rapidly transforming the communications industry across the United States and around the world. USA Datanet operates its advanced SIP-based VoIP network in providing a full range of IP-enabled communications services to over 300,000 customers across the United States. For more information about the company, visit www.usadatanet.com/business .

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