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To: Pluvia who wrote (167)	8/5/1998 4:42:00 AM
From: Pluvia	Respond to of 199

Correction 5% not 2%... Here from the July 16 98 10K ************* The Company has made a motion to dissolve the TRO and the federal court in Maine has held a hearing to consider the Company's motion. Bell Atlantic's counterclaims have been consolidated with the Company's suit in the federal court in the Southern District of Maine. The Company estimates that the TRO applies to less than 5% of the Company's target customers in its current markets. The Company continues to provide many of these customers with other services such as long distance and Internet access that are not covered by the terms of the TRO. **************

To: Pluvia who wrote (167)	8/5/1998 4:42:00 AM
From: Pluvia	Respond to of 199

Interesting Related Party ~Sweetheart Transactions~ 3. RELATED-PARTY TRANSACTIONS The installation of telephone systems is generally subcontracted to a company controlled by the Chairman of the Company. Amounts paid to this subcontractor which are based on fair market value amounted to $1,723, $28,217 and $1,089 in 1998, 1997 and 1996, respectively. Additionally, inventory and equipment purchased from this subcontractor at fair market value amounted to $231,052, $68,973 and $39,791 in 1998, 1997 and 1996, respectively. The Company leases office space from trusts in which the Chairman is a beneficiary. Rent expense for these facilities aggregated $132,656, $132,656 and $133,949 in 1998, 1997 and 1996, respectively. These office space leases expire in fiscal 1998. The Company subleases a part of its corporate facility to a company controlled by the Chairman of the Company. Terms of the sublease are identical with those included in the Company's lease. Sublease income totaled $119,416, $80,416 and $73,417 in 1998, 1997 and 1996, respectively.

To: Pluvia who wrote (167)	8/5/1998 4:49:00 AM
From: Pluvia	Read Replies (1) \| Respond to of 199

The Credit Crunch.... Fro The 10K... ************************** In November 1997, the Company replaced its existing $5,000,000 revolving line of credit agreement with a bank credit facility consisting of $15,000,000 revolving line of credit, a $5,000,000 equipment line of credit, and a $5,000,000 working capital line of credit. The revolving line of credit bears interest at Libor plus 1.5% to 3.00%, or prime rate plus up to 0.5%, depending on certain coverage ratios of the Company and expires in September, 2000. The equipment and working capital lines of credit bear interest at Libor plus 1.75% to 3.25%, or prime rate plus up to 1%, depending on certain leverage ratios of the Company and expire in September 2000. At March 31, 1998, $1,339,000 and $4,018,000 was available for borrowing under the revolving line of credit, and the equipment line of credit, respectively, and no amounts were available for borrowing under the working capital line of credit. As of March 31, 1998, the Company was not in compliance with certain covenants under its bank credit facility as a result of the Company's fourth quarter net loss of approximately $6 million. The bank has waived such covenant noncompliance under the Facility until September 30, 1998. See Note 1.