March 28, 2002 -- Adelphia Business Solutions, Inc. (Nasdaq: ABIZ) ("ABS") announced that ABS and certain of its wholly-owned subsidiaries have commenced voluntary cases under chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York.

ABS also announced that it has reached an agreement with Adelphia Communications Corporation and a Rigas family affiliate to provide debtor-in-possession (DIP) financing in the aggregate principal amount of up to $135 million. This DIP financing will provide an immediate source of funds to ABS, enabling it to satisfy the customary obligations associated with the daily operation of its business, including the timely payment of new inventory shipments, employee wages and other obligations. The DIP financing is subject to approval of the Bankruptcy Court.

ABS is engaged in advanced negotiations with the holders of its 12-1/4% Senior Secured Notes due 2004 regarding the treatment of their claims. Any resolution of these negotiations will also be subject to approval of the Bankruptcy Court.

In commencing these chapter 11 cases, ABS concluded that a financial restructuring, which could best be achieved through the chapter 11 process, was the most viable alternative for resolving its financial difficulties, given its capital requirements and debt service obligations. ABS voluntarily commenced these cases as a result of the virtual shutdown of the telecommunications capital markets and the decline in the telecommunications industry generally.

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