ROCHESTER, NY – September 13, 2004 -- Mpower Communications Corp., a leading provider of broadband Internet access and telephone services to business customers, expressed surprise and disappointment with new proposals made public late last week by two of the five Commissioners of the California Public Utilities Commission regarding new unbundled network element rates for competitive access to SBC’s California network.

“These latest proposals are an unfortunate detour in the path towards a final decision on rates that will enable vigorous competition in providing telecommunications service to California customers,” said Mpower Communications Chairman and Chief Executive Officer Rolla P. Huff.

Last month, Mpower applauded two rate proposals, one revised proposal by the first California PUC Commissioner to comment on the proceeding, and a revised proposal by the Administrative Law Judge assigned by the Commission to run the proceeding. If adopted, the Administrative Law Judge’s revised proposal would cut Mpower’s costs for DS-1 loops by more than 50%, while increasing Mpower’s costs for DS-0 loops by only 3%.

Huff noted that the proceeding to establish new rates has been going on for three years, and that the Commission is still far from reaching a decision. “Clearly there is no consensus among the three Commissioners who have issued proposals and two Commissioners have yet to be heard from,” observed Huff. “We remain optimistic that these two remaining Commissioners will soon issue proposals that are more pro-competitive and more closely aligned with that of the Administrative Law Judge.”

In the state of California alone, Mpower has invested over $250 million to build five network switches and more than 300 collocation facilities in order to effectively compete and offer consumers a real choice in telecommunications providers. With a deep and dense network in place, Mpower pioneered the concept of flat rate LATA-wide calling throughout major California markets and is bringing the benefits of Voice-over-IP technology to customers as well.

“We have built the telecommunications infrastructure that the California PUC and the FCC have long encouraged since opening the telecommunications market to competition in 1996,” noted Huff “If adopted, these two new proposals would remove further incentive for competitive telecommunications companies to build more facilities and would result in higher prices for consumers and small businesses. These proposals mirror the pricing proposals the monopoly phone company has long advocated. California consumers deserve better.”

About Mpower Communications

Mpower Communications (AMEX:MPE) is a facilities-based broadband communications provider established in 1996. Mpower offers a full range of data, telephony, Internet access and Web hosting services for small and medium-size business customers. Further information about the company can be found at www.mpowercom.com.

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