FiberNet Buys ConEd Network

NEW YORK -- Consolidated Edison, Inc. (Con Edison) announced today that it has signed an agreement to sell 100 percent of its wholly owned subsidiary, Consolidated Edison Communications Holding Company, Inc., to FiberNet Telecom Group, Inc. (Nasdaq: FTGX - News) for approximately $37 million in cash.

Con Edison Communications builds and operates its own fiber optic network providing managed data transport services, custom networks, local and long-distance voice services and Internet services. The company serves Fortune 500 corporations, local and long-distance carriers, small and medium businesses, and Internet, cable, wireless and video companies.

"We are very pleased that FiberNet has agreed to acquire Con Edison Communications," said Stephen B. Bram, Con Edison Group President, Energy and Communications. "FiberNet has an excellent reputation as a reliable network operator and for maintaining a high level of customer service. These attributes were extremely important to Con Edison as we considered the sale of the business."

Following a comprehensive strategic review, Con Edison concluded that the business would have more value and serve its customers more effectively if it were further developed within a broader telecom business environment.

"This acquisition expands and diversifies our business into the global enterprise arena. The complementary aspects of our capabilities will allow us to benefit from significant synergies and cost savings, improving our profitability and marketplace strength," said Michael Liss, FiberNet President and CEO. He added, "With our full-service platform of products and services, we are ideally positioned to offer both enterprise and carrier customers end-to-end managed network services with unmatched customer service and performance."

The sale is expected to close following review or approval by the City of New York, the NYS Public Service Commission and various federal, state and local regulators.

Con Edison Communications Inc.

FiberNet Telecom Group Inc.