i3 Networks Introduces Industry-First Fractional Switch Ownership® Program

Houston, TX: August 10, 2005. i3 Networks, an emerging total solutions provider for competitive local exchange carriers (CLECs), announced today that it has successfully completed the first phase in building its unique business model, known as UNE-3® Fractional Switch Ownership®. As a result, CLECs across the nation have, for the first time, a truly superior alternative to reselling Regional Bell Operating Company (RBOC) lines.

The UNE-3® solution comprises four key elements:

• fractional ownership of an industry-leading MetaSwitch VP3510 Class 5 Softswitch and UC9000 Unified Communications platform
• negotiated bulk purchase tariffs with major carrier partners including Level 3, for nationwide Central Office facilities and attractive long-distance rates
• management services including a 24x7 network operations center (based in Dallas, Texas) and ongoing switch maintenance
• financial assistance including a cost-effective leasing program.

For service providers migrating from UNE-P, the total package can offer significant savings and opportunity for incremental business thanks to the power and flexibility of the MetaSwitch platform. In addition to traditional POTS services, the MetaSwitch enables carriers to offer Web Self-Care, IP Centrex, Voice over IP, Voicemail and Unified Messaging - all available as part of the base UNE-3® package.

"Among the CLEC community, MetaSwitch is widely recognized as the 'gold standard' softswitch. No other platform delivers as broad a range of services on a true next generation architecture," said Chris Reese, i3 Networks' Founder, President and CEO. "When you add those advantages to the industry partnerships, operational services and financial benefits that i3 offers, the total UNE-3® package is proving to be extremely attractive to CLECs."

Already six CLECs have signed for the service including Navigator Telecommunications of Little Rock, AR and Amerimex Communications of Atlanta, GA. In total, this initial group of fractional switch owners represent over 150,000 access lines, with a shared ownership commitment today of 60,000 ports - which they are free to sell, lease or assign at will. As a result, unlike a traditional leasing arrangement, those purchased ports may be fully bookable, depreciable assets.

"Recent regulatory changes have accelerated our move to a more flexible and capable network," said Steve Garrett, Vice President of Strategic Planning with Navigator Telecommunications. "We've been impressed with the capabilities of the MetaSwitch platform and equally impressed with i3's customer-centric outlook. We're excited about the implementation of the Fractional Switch Ownership concept, and we're very pleased to be one of the founding partners."

About i3 Networks

i3 Voice & Data Inc., d/b/a/ i3 Networks, is a Houston-based voice and data telecommunications company that specializes in helping competitive local exchange carriers (CLECs) succeed in their chosen markets. What makes i3 unique is the UNE-3® Fractional Switch Ownership® program that enables CLECs to enjoy the benefits of their own network without the upfront expense and ongoing maintenance typically associated with telecom networks.

About MetaSwitch

MetaSwitch is the industry's leading vendor of Class 4/5 softswitch and enhanced applications solutions for packet and TDM networks. Its widely deployed call agent, media/signaling gateway and application server platform supports over 100 Class 5 features including CLASS services, IP Centrex, Unified Messaging, E911, LNP, 1-800 and CALEA, and scales from a few hundred to half a million subscribers in both integrated and distributed configurations. Customers include incumbent and competitive local exchange carriers, as well as operators of broadband wireless, cable and fiber networks.

MetaSwitch is a division of established telecom technology provider Data Connection Limited (DCL). The company is consistently profitable and privately held, with US locations in California, Virginia, Texas and Florida, and European headquarters in London, UK.

Data Connection and MetaSwitch are trademarks of Data Connection Limited and Data Connection Corporation. Brands and products referenced herein are the trademarks or registered trademarks of their respective holders.