MARYLAND PSC DIRECTS VERIZON TO HONOR AGREEMENT WITH ANNAPOLIS-BASED CORETEL

Annapolis, MD, June 14, 2001 -- The Maryland Public Service Commission (PSC) late yesterday ruled in favor of a petition filed by Core Communications, Inc. ("CoreTel"), which asked the Maryland PSC to direct Verizon to adhere to the terms of its interconnection agreement with CoreTel.

On May 31, 2001, CoreTel filed a petition with the Maryland PSC asking that the Commission review threats by Verizon to stop adhering to its interconnection agreements with Competitive Local Exchange Carriers (CLECs) such as CoreTel. CoreTel's action was the result of a May 14, 2001 letter sent by Verizon to CoreTel, in which Verizon cited a recent FCC order as a basis for circumventing the interconnection amendment process.

In yesterday's ruling, the Maryland PSC agreed with CoreTel and other CLECs in Maryland by stating that Verizon may not unilaterally change interconnection agreements with CLECs. Rather, changes in telecommunications law and policy are implemented through negotiated amendments to interconnection agreements, which must be approved by the Maryland PSC before taking effect.

The letter from Maryland PSC Executive Secretary Felecia L. Greer stated: "…the Commission hereby grants Core's Petition. Verizon is directed to negotiate amendments to existing interconnection agreement."

"On behalf of all the CLECs who supported the petition, we applaud the Commission's action today," said Bret Mingo, Chief Executive Officer of CoreTel. "By directing Verizon to adhere to the standard negotiation and arbitration rules, the Commission is sending a signal to those companies that are working to offer consumers a choice that the Commission is serious about competition and will not allow Verizon to bully its competitors." Verizon must now renegotiate its interconnection agreement with CoreTel. Once an agreement is reached, the Maryland PSC must approve the interconnection agreement, or arbitrate any outstanding disputes.

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About Core Communications, Inc.

Core Communications, Inc. ("CoreTel") is a Competitive Local Exchange Carrier (CLEC) headquartered in Annapolis, Maryland. CoreTel competes directly with Verizon - Maryland, Inc. and other CLECs in the highly contested data communications marketplace. CoreTel relies on its expertise with integrating the Internet and telephone networks to provide targeted services to data-focused customers. As a CLEC, CoreTel is the product of the Telecommunications Act of 1996, which deregulated local exchange telecommunications nationwide, as well as the pro-competition policies of the Maryland Public Service Commission. CoreTel's investors include Charles Ross Partners, LLC. For more information, please visit CoreTel's web site at www.coretel.net.

FOR MORE INFORMATION CONTACT:

Robin Buckley
Buckley & Kaldenbach, Inc.
703.533.9805

Addie Atkins
Buckley & Kaldenbach, Inc.
703.918.2351