Elantic completes acquisition of Dominion Telecom

May 24, 2004 Richmond, VA-- Elantic Networks, Inc. has received the necessary regulatory approvals and completed the acquisition of Dominion Telecom, a telecommunications subsidiary of Dominion Resources. Effective today, the company will operate as Elantic Telecom.

Elantic Telecom provides wholesale fiber bandwidth and carrier services to long-distance, international, wireless carriers, competitive local-exchange carriers, cable companies and large enterprises across its extensive fiber-optic network. The 16,000-mile fiber network is one of the largest and most advanced fiber networks east of the Mississippi. "We are pleased to have the opportunity to help it grow and develop," said Brad Evans, president of Elantic Networks.

The sale, announced previously in March, was awaiting regulatory approval by the Federal Communications Commission and regulators in 11 states.

Elantic Networks was formed to own and operate advanced telecommunications networks. Investors in Elantic include MC Venture Partners, Bank of America Capital Investors, and BB&T Capital Partners. The company has entered into an agreement with Cavalier Telephone, to operate and manage the network on Elantic's behalf. Cavalier Telephone currently has over 850 employees and operates one of the largest telecommunications networks in the mid-Atlantic area serving over 150,000 business and residential customers.