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To: Captain James T. Kirk who wrote (2741)	12/7/2000 9:35:51 AM
From: BWAC	Read Replies (1) \| Respond to of 10485

Some dsl news from RTHM today: Thursday December 7, 8:50 am Eastern Time Press Release SOURCE: Rhythms NetConnections Inc. Rhythms NetConnections Updates Status of Certain Consumer ISP Relationships; Company's Cash Position Will Fund Operations Through 2001 ENGLEWOOD, Colo., Dec. 7 /PRNewswire/ -- Rhythms NetConnections Inc. (Nasdaq: RTHM - news), an international provider of broadband communication services, today announced the status of its consumer Internet service provider (ISP) relationships. As of the end of September, the majority of Rhythms' consumer lines were distributed through two ISP partners. The first partner Flashcom, Inc., has signed an agreement with Rhythms to transition approximately 7,000 of its customers currently receiving Rhythms' DSL service to Rhythms' network; and the second partner, Telocity, Inc. has indicated they have funding into 2001. Both of these companies' receivable balances are current at this time. Rhythms reported total net revenue for the third quarter ended September 30, 2000, of $17.2 million. Approximately 11% of the total was consumer revenue and 89% was business revenue. Rhythms reported an installed DSL subscriber base of 47,000 lines as of September 30, 2000. Of Rhythms 47,000 DSL lines approximately 35 percent of which were consumer lines and 65 percent were business lines. ``In contrast to many others in the industry, Rhythms believes its channel approach is broader, and more diverse, consisting of Fortune 500 companies, small and medium businesses, telecommunications carriers, broadband integrators and national and regional ISPs,'' said Jay Braukman, Chief Financial Officer of Rhythms. ``Given our aggressive, and far reaching implementation of line sharing, we are now seeing our consumer customer base transition from early entrants, which included many start-up ISPs, to large national carriers and ISPs, and broadband integrators with solid brands and significant financial resources. At this time, consumer lines represent only a small component of our revenue base.'' Funding Update As of September 30, 2000, Rhythms had $748 million in cash, investments and restricted cash. While Rhythms is actively exploring additional funding, its current cash position, along with recent vendor equipment financing, is expected to fund Rhythms' operational needs through the end of 2001. ``Rhythms has built a valuable asset in its North American DSL network. It has taken more than three years to build a carrier-class network, develop the operational systems to support our business and continue to grow our subscriber base,'' said Braukman. ``We are optimistic about the future of broadband and the important role DSL will play.''