"Receiving Product of the Year designation for two of our ASG subsidiaries illustrates the depth of our offerings," said Advanced Solutions Group President Jack Baron. "The ASG subsidiaries provide value-added services to PAETEC's core network capabilities, and they also often serve as stand-alone solutions."

Allworx creates business phone systems with complete and customizable features for VoIP, traditional or hybrid communications. The 6X supports up to 60 users, while the 24X supports up to 100 users. More information can be found at www.allworx.com.

The innovations incorporated into the newest version of the PINNACLE Communication Management Suite have established new standards in usability, flexibility and system integration for effectively and efficiently managing the lifecycle of IT service support and service delivery operations. The combined integrated suite now represents the most complete Service Lifecycle Management (SLM) application in the industry. More information can be found at www.pinnsoft.com.

"PAETEC - through Allworx and PINNACLE - has been recognized with 2007 Product of the Year Awards for their excellence in the advancement of voice, data and/or video communications," said Rich Tehrani, TMC President and Group Editor-in-Chief of Communications Solutions, "PAETEC has proven they are committed to quality and excellence in solutions that benefit the customer experience as well as ROI for the companies that use them. I am pleased to honor their hard work and accomplishments and look forward to more innovative solutions from them in the future."

The eighth annual Communications Solutions Product of the Year Award recognizes the vision, leadership and attention to detail that are the hallmarks of the prestigious award. The most innovative products and services brought to market in 2007 were selected as recipients of this year's Communications Solutions Product of the Year Award for their groundbreaking achievement.

The 2007 Product of the Year Award winners can be found on the Communications Solutions Web site.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications solutions for business customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

"Ten years ago, a small group of telecom veterans came together with the mission to build the most customer- and employee-oriented communications company in the industry," said Arunas A. Chesonis, PAETEC Chairman and Chief Executive Officer. "By delivering personalized solutions to complex communications challenges, PAETEC has achieved incredible growth, with a $1.7 billion annual revenue run rate and more than 3.5 million access line equivalents in service."

PAETEC's organic growth through the years has been supplemented through strategic acquisitions, and its geographic footprint has expanded dramatically, extending to 82 of the top 100 US Metropolitan Statistical Areas (MSAs) in 2008. The company's national network infrastructure encompasses 77 traditional switching facilities, 39 Internet Protocol (IP) soft switches, and 17,000 local route miles of fiber.

"The last 10 years have been tumultuous years for the communication industry," said Michael Suby, Director of Stratecast, a division of the research firm Frost & Sullivan. "Surviving and thriving communication service providers are those that present a genuine choice in this highly competitive market and continuously listen and respond to their customers. PAETEC epitomizes these attributes."

PAETEC's growth is now fueled by a broad portfolio of data communications services, particularly multi-site MPLS VPN (Multi-Protocol Label Switching Virtual Private Network) and Voice over Internet Protocol (VoIP), as well as Network Security, Dedicated Internet Access and Managed Firewall. The company also has developed multiple value-added offerings that help customers operate more efficiently and achieve the best return on their telecommunications spending.

"We are the premiere alternative to the ILECs, based on our nationwide footprint, breadth of products, and quality of service," said EJ Butler, Jr., the company's Chief Operating Officer. "Our pledge is to continue listening to our customers, as they provide incredibly valuable feedback that we use to refine our service processes and shape our product roadmap."

"Oracle has been a key enabler for PAETEC's differentiation in the highly competitive communications marketplace," said PAETEC Chairman and Chief Executive Officer, Arunas A. Chesonis, who presented the Maestro to Bhaskar Gorti, Senior Vice President and General Manager, Oracle Communications.

"In 2002, PAETEC selected Oracle to help us create a common platform for sales, provisioning, and support," Chesonis said. "As a result, the framework is in place to more easily integrate and make accessible the sales, product, and customer information gained through mergers and acquisitions. This in turn allows us to provide the unmatched service our customers expect."

Oracle's Gorti said, "We are truly honored to receive PAETEC's Maestro Award in recognition of the tangible business benefits our software provides. We look forward to supporting PAETEC further as they deliver the industry's most personalized solutions."

PAETEC also collaborated with Oracle to develop innovative value-added offerings, such as PINNACLE V6, which is PAETEC's next-generation TEM (Telecommunications Expense Management) software.

"Last year, PAETEC re-engineered PINNACLE's Communication Management Suite into an Oracle APEX-based architecture to simplify the entire infrastructure and user experience for our customers," said Larry Foster, Vice President-PAETEC Software.

PINNACLE is a fully integrated software application designed for large enterprise customers to enable effective communications lifecycle management and consolidate the management and delivery of all technology-related services.

"Our customers tell us more and more often just how complicated, costly, and time consuming it is becoming to manage their information technology resources," said Jack Baron, President of PAETEC's Advanced Solutions Group. "PINNACLE V6 simplifies and automates the process for customers by integrating Telecom Expense Management (TEM), Service Management, Operations Management and Regulatory Compliance into a single, platform-independent framework for total Service Lifecycle Management.

"One of the major benefits of PINNACLE V6 is real-time business intelligence to proactively manage service support and service-delivery processes," Baron said.

The PINNACLE V6 SLM framework is derived from a suite of certified best-practice processes recognized by the International Standards Organization (ISO). The entire application, from backend data storage to business logic and user interface, is embedded into a single Oracle container so users can easily migrate between hosted, licensed and even outsourced solutions.

PINNACLE V6 already has been successfully deployed by numerous early adopters, enabling them to:

• Efficiently manage the lifecycle of who, what, where, why and how information technology (IT) services are deployed and configured throughout their enterprise


• Gather real-time Business Intelligence to improve operational performance


• Streamline workflow by managing data integrity and security while enabling self-service order fulfillment and electronic billing payment and presentation


• Enforce effective financial management for all service support and delivery activities from procurement to payment and chargeback


• Alleviate cost pressures by integrating PINNACLE with other business systems through an open SOA-based technology framework

"Our customers have very definite needs regarding Telecom Expense Management (TEM), Service Desk automation, Asset Management, and Business to Business (B2B) system integration requirements," said Jack Baron, President of PAETEC's Advanced Solutions Group. "PINNACLE V6 is a revolutionary ERP-type solution that answers those needs in an innovative way and provides all the tools to automate the lifecycle of service management in one integrated platform."

"PAETEC has proven they are committed to quality and excellence while addressing real needs in the marketplace. Unified Communications is pleased to grant a 2007 Product of the Year Award to its PINNACLE solution," said Rich Tehrani, TMC President and Editor-in-Chief of Unified Communications magazine. We're proud to honor their hard work and accomplishments and look forward to more innovative solutions from PAETEC in the future."

A full list of Product of the Year winners will be published in the March 2008 issue of Unified Communications magazine, www.uc-mag.com.

For more information about TMC, please visit www.tmcnet.com.

About PAETEC
PAETEC (NASDAQ GS: PAET) is personalizing communications solutions for business customers across the United States. We offer a comprehensive suite of data, voice, and IP services, as well as enterprise communications management software, network security solutions, CPE, and managed services. For more information, visit www.paetec.com.

FAIRPORT, N.Y. (October 12, 2007) - PAETEC Holding Corp. (NASDAQ GS: PAET) announced today that it has signed a definitive agreement to acquire Allworx Corp., a privately held company, in a $25 million all-cash acquisition. Allworx develops, designs, markets, and sells a complete phone and network system. Upon the closing of this acquisition, PAETEC will add a subsidiary with manufacturing, distribution, and software and digital hardware engineering services that are designed to benefit small and medium-sized businesses. The transaction is subject to customary closing conditions and is expected to be completed in October 2007.

With the September 17 announcement that it has signed an agreement to acquire McLeodUSA, PAETEC is expected to enhance its offerings to small and medium-sized business customers. The Allworx portfolio should allow PAETEC to better serve this market. This portfolio includes integrated PBX/Key telephone and network systems and VoIP telephones with a series of advanced communications software options, such as conference calling and call queuing.

"This transaction allows PAETEC to serve one of the growing segments of our business by bringing into our company an innovative technology and product development firm," said Arunas A. Chesonis, Chairman and Chief Executive Officer of PAETEC. "We've long respected the entrepreneurial spirit and culture that the Allworx management team has created, and look forward to working with them and leveraging their expertise to benefit our existing clients. We're also pleased about the opportunities we'll have to offer PAETEC's network services to Allworx's current customer base."

"Being a part of PAETEC provides immediate benefits to our employees, our customers and our network of Authorized Resellers," said George E. Daddis Jr., president and CEO, Allworx Corp. "This will give us the opportunity to offer more small and medium-sized businesses a seamless transition to VoIP, with the support and powerful brand of one of the nation's leading communications solutions providers behind us."

"Allworx fits into our strategic vision by providing small and medium-sized businesses with the opportunity to transition from aging PBX and key phone systems to the advanced features and benefits of VoIP technology," said Jack Baron, Chief Marketing Officer of PAETEC.

Based in East Rochester, N.Y., Allworx primarily uses Value Added Resellers, or VARs, as its sales channel. PAETEC will continue to use VARs, as well as its extensive agent network, to introduce both Allworx services to PAETEC customers and PAETEC services to Allworx customers.

These risks and uncertainties may include those discussed in US LEC's reports on Form 10- K, Form 10-Q and Form 8-K on file with the Securities and Exchange Commission (the "SEC"), and other factors which may not be known to us. Any forward-looking statement speaks only as of its date. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

Additional Information and Where to Find It
"New PAETEC" will file with the SEC a registration statement that will contain a proxy statement/prospectus regarding the proposed merger transaction between PAETEC and US LEC, as well as other relevant documents concerning the proposed transaction. Investors and security holders of US LEC are urged to read the proxy statement/prospectus for the transaction and the other relevant documents when they become available because they will contain important information about "New PAETEC," PAETEC, US LEC and the proposed merger transaction. The proxy statement/prospectus will be mailed to stockholders of US LEC prior to their stockholders meeting. Investors and security holders of US LEC may obtain free copies of the proxy statement/prospectus and other documents filed by "New PAETEC" with the SEC (when they become available) at the SEC's web site at www.sec.gov. Free copies of the definitive proxy statement/prospectus and other documents also may be obtained by writing to PAETEC, One PAETEC Plaza, 600 Willowbrook Office Park, Fairport, New York 14450, Attention: Investor Relations.

Information regarding the identity of persons who may, under the SEC's rules, be deemed to be participants in the solicitation of stockholders of US LEC in connection with the proposed transaction, and their interests in the solicitation, will be set forth in the proxy statement of US LEC and in the registration statement that will be filed by "New PAETEC" with the SEC.

Contact Information
US LEC Investors:
J. Lyle Patrick
Executive Vice President and Chief Financial Officer, US LEC
704-319-1114
lpatrick@uslec.com

PAETEC Investors:
Keith Wilson
Chief Financial Officer, PAETEC
585-340-2970
keith.wilson@paetec.com

Media:
Steve Frankel / Sharon Goldstein
Both of Joele Frank, Wilkinson Brimmer Katcher
212-355-4449