Weekly Financial Report - Jan. 29, 2002

Global Crossing Declares Bankruptcy [Main Story]

Broadview Acquires Net2000 Assets [Main Story]

McLeodUSA Incorporated (Nasdaq:MCLD) announced that the company has completed the previously announced sale of certain of its internet/data assets and wholesale dial-up Internet Service Provider customer base (formerly part of Splitrock Services) to Level 3 Communications, Inc. Under terms of the agreement, which were substantially the same as previously announced, Level 3 purchased 350 POPs (points of presence) across the U.S., the related facilities, equipment and underlying circuits, plus the wholesale ISP customer base. McLeodUSA will retain its Level 3 fiber IRU. The parties have also entered into operating agreements enabling McLeodUSA to continue providing service and support to its in-region customers.

Focal Communications Corporation (Nasdaq: FCOM), a national provider of local phone and data services, announced that it expects revenue of at least $83 million for its fourth quarter, ended December 31, 2001, in line with guidance and an increase of at least 23% from the fourth quarter of 2000. For the year, Focal estimates revenue of at least $332 million, an increase of at least 42% year-over-year. The company installed 94,299 gross lines in the fourth quarter, but experienced significant line disconnects in its ISP business, resulting in consolidated net line additions of 42,136 for the fourth quarter of 2001. On a net basis, the company installed 65,883 net new enterprise lines and had 23,747 net ISP line disconnects. At the end of the year, 60% of the company's lines were enterprise lines.

Teligent Inc., a provider of facilities-based fixed wireless services, announced that Teligent's senior lending group supports a plan to utilize collateral proceeds to fund a successor company with the mission of providing fixed wireless services, including private line, transport, and wholesale services, in addition to resold services, in all of Teligent's 74 markets. The successor company, expected to be directly or indirectly owned by Teligent's senior lenders, will be operated by Teligent's existing senior management team. The successor company is expected to have sufficient assets and funding to reach positive cash flow within approximately two years. The emergence of the successor company is subject to legal approvals, including those of the U.S. Bankruptcy Court and federal and state regulators.

ACSI Network Technologies, Inc. ("ACSI NT"), a subsidiary of e.spire Communications, Inc. (OTC Pinksheets: ESPIQ) and a provider of metropolitan area optical fiber networks and strategic network design services, announced that it has won a contract with Richmond, VA-based Dominion Telecom, Inc. ("Dominion Telecom"), an affiliate of Dominion (NYSE: D) to provide 11 miles of conduit in downtown Washington, DC and related routine maintenance and emergency restoration services.

Asia Global Crossing (NYSE: AX) issued the following statement today in response to Global Crossing's announcement that it had signed a letter of intent with Hutchison Whampoa Limited and Singapore Technologies Telemedia Pte. Ltd. for $750 million cash investment for a joint majority stake in Global Crossing and that it and certain of its affiliates had commenced Chapter 11 cases: "Asia Global Crossing is not a party to the letter of intent, and it is not one of the Global Crossing affiliates that has joined Global Crossing in commencing Chapter 11 cases. Asia Global Crossing and Global Crossing are closely linked through ownership, strategy and operations. While they are not the same company, Global Crossing owns 58.8 percent of the equity in Asia Global Crossing. However, Asia Global Crossing is a separate corporation, with separate stockholders, creditors, employees, network assets and operations. Asia Global Crossing does not expect the Global Crossing voluntary reorganization to have any immediate effect on Asia Global Crossing's internal operations or customer service, as Global Crossing has said that it will continue to conduct its business in the ordinary course while it reorganizes under Chapter 11.

LecStar Corporation (OTC Bulletin Board: LCST), an Atlanta-based regional provider of integrated communications services to businesses and consumers, announced preliminary total revenue of $1.4 million for the fourth quarter of 2001. For the year ended December 31, 2001, LecStar reported preliminary total revenue of $5.0 million, a 150 percent increase over the $1.8 million generated by the company's telecommunications operations for full year 2000. LecStar also reported 10,980 total active lines at year-end compared with 4,490 total active lines at the end of 2000.

RCN Corporation's (Nasdaq: RCNC) Fourth Quarter 2001 results and 2002 Guidance will be released before the market opens on Friday, February 8. RCN will host a conference call at 11:00 a.m. Eastern Time.

Choice One Communications (Nasdaq: CWON), an Integrated Communications Provider offering facilities-based voice and data telecommunications services to small and medium-sized businesses, announced that it will release fourth quarter and year-end financial results after the market closes on Monday, February 11, 2002. The company will host a telephone conference call and simultaneous webcast to review the results on Monday, February 11, 2002 at 5:00 p.m. eastern time.

SBC Communications Inc. (NYSE:SBC) said that fourth-quarter earnings before one-time items were $0.64 per diluted share, up 12.3 percent from $0.57 in the year-ago quarter. Fourth-quarter net income before one-time items was $2.2 billion, compared with $2.0 billion in the fourth quarter a year ago. For the full year 2001, SBC earnings before one-time items were $2.35 per diluted share, up from $2.26 per share in 2000. Including all one-time items, SBC's fourth-quarter 2001 net income was $1.2 billion, or $0.37 per diluted share, versus $1.3 billion, or $0.38 per diluted share, in the fourth quarter of 2000. Full-year 2001 reported net income was $7.2 billion, or $2.13 per diluted share, versus $8.0 billion, or $2.32 per diluted share, in 2000.

U.S. RealTel, Inc. (OTC Bulletin Board: USRT) announced that its wholly owned subsidiary Cypress Merger Sub, Inc. has commenced a previously announced tender offer for all the outstanding shares of common stock of Cypress Communications, Inc. (Nasdaq: CYCO), including the associated rights to purchase preferred stock, at $3.50 per share net to the seller, in cash. The tender offer is being made pursuant to an Agreement and Plan of Merger, dated as of January 10, 2002, as amended January 17, 2002. The tender offer will expire at 12:00 midnight, New York City time, on Tuesday, February 19, 2002, unless extended. The offer is conditioned upon, among other things, there being validly tendered and not withdrawn a number of shares which equals at least 90% of the outstanding shares of Cypress on a fully diluted basis (assuming the exercise of all options to purchase shares and any other rights to acquire shares with an exercise or conversion price equal to or less than $3.50 per share). LaSalle Bank National Association, is the Depositary for the tender offer and Innisfree M&A Incorporated is the Information Agent.

MFN Financial Corporation (OTC Bulletin Board: MFNF), announced that at a special meeting its shareholders approved the Agreement and Plan of Merger, dated November 18, 2001, among MFN Financial Corporation, CPS Mergersub, Inc. and Consumer Portfolio Services, Inc. (Nasdaq: CPSS). Pursuant to the merger agreement, Consumer Portfolio Services, Inc. will pay $10.00 cash for each share of MFN Financial Corporation's common stock outstanding on the effective date of the merger. Consummation of the merger is subject to the satisfaction of various conditions, certain of which remain outstanding. The closing date of this transaction has not yet been determined.