MPOW - Mpower Holding Corporation (MPOW)

[jmhollen]

Mpower Holding Retires $48.9 Million in Debt

ROCHESTER, N.Y., Nov 26, 2002 /PRNewswire-FirstCall via COMTEX/ -- Mpower Holding Corporation (OTC Bulletin Board: MPOW), the parent company of Mpower Communications Corp., a provider of broadband high-speed Internet access and telephone services to business customers, announced today that it has repurchased $48.9 million of its $51 million outstanding 13% Senior Notes due 2004 for $13.7 million in cash. Pursuant to the terms of the 2004 Notes, Mpower intends to redeem the remaining $2.1 million of Notes following this transaction.

With the exception of $4 million in capital leases, this action, coupled with the intended redemption of the remaining 2004 Notes, would eliminate all of the company's remaining debt and will allow the company to remove liens on more than $100 million of its network equipment.

"We continue to pursue additional funding alternatives and are engaged in active negotiations with potential strategic partners," said Mpower Communications Chairman and Chief Executive Officer Rolla P. Huff. "Eliminating essentially all of our remaining debt is a crucial step in our efforts to consummate a value enhancing, strategic transaction and we expect that it will greatly accelerate that process."

About Mpower Holding Corporation

Mpower Holding Corporation (OTC Bulletin Board: MPOW) is the parent company of Mpower Communications, a facilities-based broadband communications provider offering 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 http://www.mpowercom.com .

SOURCE Mpower Holding Corporation

CONTACT: Investor Relations - Gregg Clevenger, Chief Financial Officer, [phone], [e-mail], or Media - Michele Sadwick, Vice President, [phone], [e-mail], both of Mpower Holding Corporation URL: http://www.mpowercom.com

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