ConnectSouth Secures Equity Funding of $100 Million and Announces 800 Central Office DSL Roll-Out. New Company will Build Bridges across the Digital Divide in Underserved Cities throughout the Sunbelt.

In response to the demand for broadband Internet access and the lack of competitive service providers in smaller, traditionally underserved markets, ConnectSouth Communications, Inc., has announced plans to launch service in 80 cities across the Sunbelt. The new company will offer turnkey Internet solutions -- high-speed connectivity and Web-based business tools -- that make the Internet work for the nearly 5 million small- and mid-sized businesses throughout the South.

ConnectSouth, founded by Jeff Mucci, members of ConnectSouth management and Morgan Stanley Dean Witter Private Equity, obtained a $100 million equity commitment from an investment group led by Morgan Stanley Dean Witter Private Equity that includes Fleet Equity Partners and Waller-Sutton Media Partners. This investment commitment positions ConnectSouth as one of the best funded regional DSL players in the country and will allow ConnectSouth to build a broadband, high-speed DSL network in 80 cities, serving an estimated 5 million businesses throughout the region. In addition to the significant financial commitment, the investment group brings industry insight from their existing or past involvement in such companies as Exodus, USinternetworking, Verio, Brooks Fiber, Allegiance Telecom, Internap and Equant.

"Affordable broadband Internet access simply does not exist in most of the markets ConnectSouth has planned for deployment," stated Jeff Mucci, founder and CEO of ConnectSouth. "The availability of cost-effective 'always on' Internet access represents an exciting opportunity for customers to reap the real benefits of the Internet. As a well-funded service provider, ConnectSouth has been able to attract a top-flight management team from such companies as Brooks Fiber, MFS, PSINet, and Tivoli. We have the resources to rapidly build a large DSL footprint while investing in the Web-enabled operating support systems (OSS) required to provide superior customer service.

ConnectSouth will begin provisioning digital subscriber line (DSL) service in eight cities starting in April 2000 - Austin, Biloxi, Birmingham, Mobile, New Orleans, Oklahoma City, Tulsa and Waco - and will continue expansion to an additional 22 markets later this fall. Over the next two years, ConnectSouth plans to build and operate its own high-speed DSL network in an estimated 80 markets throughout the southern region of the United States.

ConnectSouth will serve its customers with a wide range of Internet-based tools, effectively providing an electronic "home base" that supports the Internet and e-business needs of business owners. Service offerings will include a full suite of Internet and data connectivity solutions coupled with e-business and e-commerce enabled business tools to include Web hosting, virtual e-mail, intra- and extranets, VPNs, firewalls, information management tools and content vital to the local markets and vertical business segments served by ConnectSouth.

"By providing the tools to take their operations on-line, ConnectSouth is offering small and medium-sized businesses a chance to 'level the playing field' and compete with big businesses in the emerging global economy," commented Maureen Carlson, director of product marketing, Internet business tools. "We are going to offer a bigger, better, faster connection to the Internet, and will take our commitment one step further by understanding our customer needs and delivering the right tools to make the Internet work for small- and mid-sized businesses. Our job is to help our customers stay focused on their core business while we make the underlying technology transparent."

"Our biggest strength will be our local market knowledge and regional focus on serving the business customer. We are not going to be a huge, faceless communications company with operations in every part of the world, trying to serve everyone and sometimes serving no one," Mucci added. "Our customers will be an integral part of our company, just as we want to be an integral part of theirs."

ConnectSouth Communications, Inc. (www.csouth.net), headquartered in Austin, TX, is an "e-enabler," providing a full complement of Internet communications services to small and medium-sized businesses in under-served cities and towns. ConnectSouth is committed to providing each of its customers with personalized products and a level of service that will set it apart from other providers.

About Morgan Stanley Dean Witter Private Equity

Morgan Stanley Dean Witter Private Equity is the private equity business of Morgan Stanley Dean Witter & Co. (NYSE: MWD), a preeminent global financial services firm, and includes Capital Partners and Venture Partners. Since its founding 15 years ago, funds managed by Private Equity have invested $4 billion in more than 160 companies around the world. Capital Partners’ current fund is capitalized at $3.2 billion, and Venture Partners' current fund is capitalized at $550 million. Private Equity's investments include Equant, Allegiance Telecom, InterNap, and Commerce One.