7th acquisition adds 100,000 access lines & all-digital network in Florida!

ATLANTA, May 12 /PRNewswire/ -- Birch Communications, a leading provider of telecom services in the United States, announced today it has signed a definitive agreement to acquire substantially all of the customers and network assets of Cleartel Communications, Inc., a leading provider of voice and data telecommunications solutions. Included in the acquisition are approximately 100,000 business and residential access lines as well as a state-of-the-art facilities network in Florida.

'Acquiring the Cleartel assets further advances Birch's corporate strategy to strengthen and expand our business, as well as our IP-based voice and data network, via tuck-in, synergistic acquisitions,' said Vincent M. Oddo, Birch president and CEO. 'This is our seventh strategic acquisition during the past three years and each one has significantly increased customer density in our 31 state service footprint.'

'Through each acquisition, Birch has proven its ability to seamlessly integrate acquired customers and network into its current business. As a result, we have been able to enhance the service experience and product offerings for acquired customers while creating significant additional positive cash flow for the company,' said Edward James, Birch CFO. 'We look forward to enhancing the Customer Experience as well as stakeholder value in the same manner with this highly-accretive transaction.'

Throughout its 13 year history, Birch has built an unparalleled reputation for delivering great service to small and medium sized businesses with a very strong commitment to customer satisfaction. 'We're very excited to welcome the Cleartel customers into our Birch family knowing that they will immediately benefit from our dedication to providing award-winning, superior customer care,' said Christopher Aversano, Birch COO.

This acquisition significantly strengthens and accelerates Birch's market position as one of the largest competitive communications companies in the United States, making Birch the premier alternative to the legacy carriers for small and medium sized business customers. The additional density and network will also allow Birch to offer its new customers an even wider array of reliable local voice and high speed Internet services, including DSL, ADSL 2+ and T-1 services, at very affordable prices.

Terms of the transaction were not disclosed.