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MARYLAND PSC HEARING EXAMINER FINDS
VERIZON VIOLATED TELECOM RULES
--CoreTel preparing to seek monetary damages--

Annapolis, MD, August 11, 2003 -- A Maryland Public Service Commission (PSC) Hearing Examiner found on Friday that Verizon Maryland violated the Telecommunications Act of 1996, its interconnection agreement with Core Communications, Inc. ("CoreTel"), and state law by failing to interconnect its network with that of CoreTel in a timely manner. Specifically, the Hearing Examiner agreed with CoreTel's claims that Verizon:

  1. took much longer to provide interconnection to CoreTel than it takes Verizon to provide identical services to Verizon's retail customers;
  2. refused CoreTel's requested form of interconnection, even though Core's request was technically feasible;
  3. refused to interconnect with Core using available facilities;
  4. refused, in bad faith, to communicate with Core in order to achieve a timely interconnection.

The Hearing Examiner's Order will become a final order of the Maryland Public Service Commission if it is not appealed by Verizon. Core expects Verizon to appeal.

CoreTel's complaint, which dates back to 1999, centers around Verizon's refusal to interconnect with CoreTel's Baltimore Wire Center by means of existing Verizon network facilities. Instead, Verizon insisted on using newly constructed facilities, forcing Core to wait for months while Verizon completed construction of the new facilities.

Bret Mingo, Core's chief executive officer, noted, "While it's edifying for Core to demonstrate once again that Verizon's interconnection practices and policies are illegal, we recognize that we still have a lot of Verizon scorched earth to travel over."

"The regulatory lag we face is difficult," Mingo continued. "This complaint is nearly four years old, and I anticipate another multi-year effort to reach ultimate resolution. The same holds true at the FCC, where Core is involved in a damages case that also looks like another multi-year effort."

"Regulators must recognize that what's sport for the boy is life and death for the frog. In case it's unclear – we're the frog."

CoreTel, a Competitive Local Exchange Carrier that provides managed modem service to Internet Service Providers (ISPs) throughout the Mid-Atlantic region, recently scored a significant victory at the Federal Communications Commission (FCC). Last month, the FCC found that Verizon "stunted the growth" of competitive entry in the Washington, D.C. area by unreasonably delaying interconnection to Core Communications. CoreTel has announced that it plans to seek monetary damages from Verizon as a result of the FCC's ruling.

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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

Copyright © 2004 Core Communications, Inc.