MAITLAND, Fla. -- FDN Communications, a leading provider of telecommunications services in the Southeast, and H.I.G. Capital, the largest private equity firm in the Southeast, has jointly acquired Supra Telecom, a Miami-based telephone company that serves over 250,000 residential customers in South Florida. FDN and HIG will each own 50 percent of Supra. Supra emerged from Chapter 11 bankruptcy protection today.

Supra will use FDN’s proprietary network and systems to provide an expanded portfolio of voice and data products, including local, long distance, and high speed Internet options, such as DSL, to the residential market. FDN owns and operates a fiber-optic-linked network, powered by state-of-the-art Nortel Class 5 switches.

“This investment is a great fit with our strategy to deepen our penetration in our core markets and will rapidly accelerate our revenue growth,” says Mike Gallagher, FDN’s founder and chief executive officer. “Combining FDN’s network and operating strengths with Supra’s leadership position in the residential market will ensure residential customers continue to have an alternative to the high priced monopolies.”

Already a leading provider in the business sector with annual revenues exceeding $150 million, FDN will use this transaction to build its dominant position in the Florida marketplace. Gallagher said: “The deal will mean the expansion of FDN’s work force in Central and South Florida,” estimating that more than 100 new positions will be created in the next 6 months.

“We have always felt that operating our own network and systems allow us to bring innovative products and services to the marketplace and provide superior customer service,” Gallagher said. “We know the Supra customers will recognize and appreciate an improved level of support.”

Supra Telecommunications and Information Systems Inc.