Mpower Plans Recapitalization

ROCHESTER, N.Y. -- Mpower Holding Corporation (OTC: MPWR) announced that it has taken the next step in its proposed recapitalization plan to retire $583.4 million in debt and preferred stock. Today, Mpower and its subsidiaries, Mpower Communications Corp. and Mpower Lease Corporation, filed a voluntary, pre-negotiated plan under Chapter 11 of the Federal bankruptcy code in the U.S. Bankruptcy Court for the District of Delaware. "By filing our plan with the court, we are advancing toward our goal of substantially reducing our debt, while maintaining our commitment to our nearly 120,000 customers. We fully expect to operate business as usual as we move through this process, continuing to invest in serving our customers and growing our business," said Mpower Communications Chief Executive Officer Rolla P. Huff. "With the support of a majority of our debt holders and preferred stockholders already in place, we believe we are now in a position to efficiently restructure our balance sheet and hope to complete this process as quickly as possible." As a result of this filing, Mpower's common and preferred stock are expected to trade on the NASD OTC under the symbols MPWRQ and MPWRPQ, respectively. Mpower Communications