For Immediate Release Monday August 27, 2001

Bandwidth Market, Ltd., a Denver telecommunications broker, announced today the lowest prices for Internet Access it has ever offered for DS-3, OC-3 and OC-12 speed lines in more than 200 US cities. A DS3 line, at a speed of 45 Million Bits Per Second (Mbps), is now available for $150 per Mbps per Month. Bandwidth Market's rates for other high speed lines are also extremely low. OC3 (155 Mbps) and 0C-12 (622 Mbps) are available at prices at $125 and $99 per Mbps per Month respectively. In certain cities, Bandwidth Market offers the slower T1 (1.5 Mbps) speed at $400 per month.

"The prices on our very competitive market were more than 60 percent higher two months ago," said Barbara Shaw, Vice President of Bandwidth Market. "This reflects the depressed telecommunications market, technology driven reductions in the cost of production, and increased sales efficiency." Two months ago, the average price for DS3 Internet Access was over $11,000, now it is $6711 per month. Access prices for OC12 Internet Access has dropped by more than half to $62,000 per month.

Bandwidth Market offers these Internet Access speeds in more than 200 US cities. All feature 100% availability and an average round-trip POP to POP on network delay of 65 milliseconds or less, on a Tier One network. Bandwidth Market also offers Internet T1 lines at a very low price of $400 per month for numerous locations.

"Prices for bandwidth are also dropping dramatically because many companies are now offering rates through 20-year Indefeasible Right of Use (IRU) leases," according to Bandwidth Market President Howard Holme. "This ‘money-up-front’ method gives buyers extreme bargain prices. OC-192 is the fastest commercial bandwidth connection available--9.95 Gigabytes per second, and monthly rates normally fetch $250-500,000. However, Bandwidth Market's customers who purchase a 20-year IRU OC-192 can achieve some averaged prices of $4-8,000 per month."

These huge reductions occur, according to Holme, because bandwidth technology has improved faster than any productivity increase in history and are expected to continue despite the current telecom industry depression. "When buying an IRU, one pays, in advance, for 30-50 of the 240 months in the 20 year term. This accounts for the rapidly declining future cost (and thus value) of bandwidth and the delay in receiving monthly payments. In telecom, however, the continuing reduction in production cost is the overwhelming factor."

A third cause of "anomalously low prices", according to Holme, is use of Asynchronous Transfer Networks to balance traffic. "We offer T1s from London, Paris, or Frankfurt to a dozen major US cities, East and West coast for a shockingly low $950 per month, and DS3s for $12,000. We also offer a T1 from Chicago to Sydney for $1,070 per month. We appreciate these extremely low prices, but people need to comb through our hundred of thousands of offers or call us to find them."

Bandwidth Market is constantly expanding its services, and President Howard Holme says he is shopping for a national Dark Fiber Network. The Denver based business recently announced it has "the largest and best telecommunications website in the world."