Broadweave Networks to Acquire Veracity Communications

-Acquisition Marks Next Step in Provo, Utah's Sale of the iProvo
Network to Leading Fiber-to-the-Premise (FTTP) Provider-
SALT LAKE CITY--(Business Wire)--
As a continued step in the purchase of the iProvo fiber-optic
network, the largest municipally owned fiber-to-the-home (FTTH)
network in the U.S., Broadweave Networks and Veracity Communications
today announced an agreement in which Broadweave will acquire Veracity
in a cash and stock transaction. Under the terms of the acquisition,
Broadweave and Veracity will merge operations and combine companies.
Two principals of Veracity will join Broadweave's executive ranks.
Kevin Mayberry joins Broadweave's board of directors and Drew Peterson
will become Broadweave's Chief Sales Officer, executives of the two
companies disclosed.

Backed by Utah investment firms Sorenson Capital and EsNet Group,
Broadweave has agreed to purchase the iProvo fiber-optic network for
$40.6 Million and believes that Veracity will be a critical part of
the success of that venture.

"Veracity offers skills and abilities that are integral to the
long-term success of our company," said Steve Christensen,
Broadweave's CEO. "They've done a terrific job of selling and
delivering quality services to businesses in Utah."

When Broadweave made the decision to purchase the iProvo network,
we realized the network was not reaching its true potential for
achieving a high take rate among business customers, Christensen
noted. Broadweave set out to address that issue and discovered
Veracity in that process.

"Drew Peterson and Kevin Mayberry (CEO and owner, respectively)
have built a fantastic team at Veracity and have established a strong
client base among Utah businesses," Christensen said. "They have a
real passion and talent for selling. I've rarely ever seen a company
that cares as much about their business customers."

Veracity delivers voice and data services over Utah's iProvo
network and over Qwest's network. Veracity's clients include notables
such as Brigham Young University, Mountain America Credit Union, and
RC Willey. Veracity is rare among service providers on the iProvo
network because the company is cash flow positive and is growing at an
annual rate of about 200 percent.

Drew Peterson said, "We looked at Broadweave's stellar team,
financial backing, and technical expertise, and realized that together
we could build a better solution for our customers."

Fraser Bullock, one of Broadweave's board of directors, stated,
"This acquisition underscores Broadweave's commitment to invest in the
critical elements of the business that will ultimately turn the iProvo
network into a positive experience for residents and businesses."

The combined companies will serve businesses and residents on the
iProvo network and more broadly as the company expands to new markets.

About Broadweave Networks

Broadweave Networks (www.broadweave.com) delivers its
"Triple-Weave" suite of voice, video, and data services via the
Company's own Fiber-To-The-Premises (FTTP) networks. Until recently,
Broadweave has focused on deploying its fiber networks in new planned
communities. Broadweave's acquisition of the iProvo network expands
the company's footprint. Broadweave also delivers data services,
commercial telephony, and hosted Voice over IP (VOIP) communications
services to small to mid-size businesses and enterprises.

About Veracity Communications

Veracity Communications (www.veracitycom.net) is one of the
largest providers of voice and data services to businesses in Utah and
one of the most prominent alternatives to the incumbent providers.
Veracity also provides branded wholesale Voice over IP (VoIP) services
across the country. Since its inception, Veracity has achieved a 200%
annual growth rate.

Snapp Conner PR
Cheryl Snapp Conner, 801-376-2158
cheryl@snappconner.com
or
Clayton Blackham, 801-440-5040
clay@snappconner.com

Copyright Business Wire 2008