Rhythms NetConnections Poised to Help Partners Meet Demands for DSL
Service
ENGLEWOOD, Colo., Jan 17, 2001 /PRNewswire via COMTEX/ -- Rhythms NetConnections
Inc.(TM) (Nasdaq: RTHM), an international provider of broadband communication
services, stated today that it is has the capability and capacity on its network
to assist partners who are experiencing challenges in filling demand for digital
subscriber line (DSL) services.
On January 16, 2001, NorthPoint Communications Group Inc., one of the three
national DSL providers, filed for protection under the bankruptcy laws.
Rhythms(TM) is the only national DSL provider that offers the same DSL platform
as NorthPoint.
"Rhythms has helped MegaPath maintain our industry-leading quality reputation,
while we continue to build our national presence," said Dan Foster, Chief
Marketing and Sales Officer at MegaPath Networks Inc. "Rhythms has the network
and operations in place to help us continue to meet new customer demand."
"Rhythms welcomes the opportunity to work with service providers looking to move
their business to a more stable and financially stronger DSL provider," said
Steve Stringer, President and Chief Operating Officer of Rhythms. "We have
substantial experience transitioning DSL lines and can ensure all new partners
that we will meet their DSL needs promptly, with a minimum of disruption to
their DSL business going forward."
Flashcom Update
Rhythms recently transitioned the vast majority of the 7,000 lines that it
acquired from Flashcom, Inc., which filed for bankruptcy protection in December
2000, to a financially stable ISP partner. Most of the lines were transitioned
in a four-week timeframe. Rhythms acquired these lines from Flashcom prior to
its bankruptcy filing in order to minimize any disruptions in the customers' DSL
services that might have resulted from that filing.
Funding Update
While Rhythms is actively exploring additional funding, its current cash
position, along with $50 million in recent vendor equipment financing, is
expected to fund Rhythms' operational needs into the 2002 first quarter.
About Rhythms
Based in Englewood, Colo., Rhythms NetConnections Inc. (Nasdaq: RTHM) provides
DSL-based, broadband communication services to businesses and consumers.
Telecommunications services for Rhythms are provided by Rhythms Links Inc., a
wholly owned subsidiary of Rhythms. For more information, call 1-800-RHYTHMS
(1-800-749-8467), or visit the company's Web site at www.rhythms.com.
Rhythms, Rhythms NetConnections and (any product names for which trademark
applications have been filed) are trademarks of Rhythms NetConnections Inc.
The statements contained in these materials which are not historical facts may
contain forward-looking statements with respect to events, the occurrence of
which involve risks and uncertainties. Such statements are indicated by words or
phrases such as "anticipate," "estimate," "projects," "believes," "intends,"
"expects" and similar words and phrases. The following are important factors
that could cause Rhythms' actual results to differ materially from those
expressed or implied by such forward looking statements: the highly competitive
nature of the DSL market; the rapid rate of technological change in the
telecommunications industry; Rhythms' history of operating losses and the
unproven nature of its business model; customer agreements are generally
non-exclusive and terminable by the customer on short notice; several customers
are young, emerging companies that are not fully funded; Rhythms' existing
capital structure may affect its ability to raise additional capital in the
future; Rhythms' dependence on incumbent carriers for collocation and
transmission facilities and on unrelated strategic third parties for certain
sales and marketing services, equipment installation and fiber optic transport
facilities; the need to retain and attract key personnel; and other economic,
business, competitive and governmental and/or regulatory risks detailed in
Rhythms' filings with the Securities and Exchange Commission. Rhythms undertakes
no obligation to review or confirm analysts' expectations or estimates or to
release publicly any revisions to any forward-looking statements after the date
hereof or to reflect the occurrence of unanticipated events.
SOURCE Rhythms NetConnections Inc.
CONTACT: Karen Breen, Rhythms Investor Relations, 303-876-2611,
kbreen@rhythms.net, or Chris Hardman, Rhythms Public Relations, 303-476-4259,
chardman@rhythms.net
URL: rhythms.com
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