MPOW - Mpower Holding Corporation (MPOW)

[jmhollen]

Mpower Holding Initiates Redemption of Remaining Notes Will Clear All Bondholder Debt From Balance Sheet

ROCHESTER, N.Y., Dec 5, 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 and telephone
services to business customers, announced today that it intends to redeem all of
the approximately $2.1 million principal amount remaining of its 13% Senior
Secured Notes due 2004. HSBC Bank USA, the trustee under the indenture governing
the Notes, will notify registered noteholders by mail that on January 3, 2003,
pursuant to the terms of the Notes, Mpower will redeem the Notes at a redemption
price of 103.25% of their principal amount.

On November 25, 2002, the company announced that it had repurchased
approximately $48.9 million of the approximately $51 million outstanding 13%
Senior Notes due 2004. With the action announced today, Mpower expects to be
completely clear of noteholder debt, with only $4 million in capital leases
remaining on the company's balance sheet.

"Essentially eliminating all of our debt puts us in a unique position in the
telecommunications industry today and we believe is a critical prerequisite to
attracting additional funding and pursuing strategic transactions," said Mpower
Communications Chairman and Chief Executive Officer Rolla P. Huff.

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, 585-218-6547, or [e-mail]; or Media, Michele Sadwick, Vice President, [phone], or [e-mail], both of Mpower HoldingCorporation

URL: http://www.mpowercom.com