PAETEC: America’s Premier Alternative to Incumbent Local Carriers

STEPHEN A. COLUCCI

SENIOR ACCOUNT EXECUTIVE

310 733 2254

[DATE][DATE]

PAETEC’s mission is to be the most customer and employee-oriented

communications provider.

“PAETEC rises above the communications service provider pack.”

Forrester Research

Agenda

Financial Highlights

Company Highlights

PAETEC’s Network

Industry Recognition

Caring Culture

Open Communication

Unmatched Service

Personalized Solutions

The PAETEC Difference

Financial Highlights

NASDAQ: PAET

Revenue – $1.6B

Adjusted EBITDA – $256.9M

Free Cash Flow – $135.4M *

* Adjusted EBITDA Less CAPEX

Company Highlights

84 of the top 100 U.S. MSAs

5.9 million access line equivalents

Approximately 4,000 employees

ISO 9001:2008 certified

Headquartered in Rochester, NY

Employee-led “Green Team”

Data Center – Conshohocken, PA

88 Voice Switches34 Soft Switches124 Backbone Routers3 Network Operations Centers

2 Class-A Data Centers20,082 Route Miles of Fiber

PAETEC’s Network

Industry Recognition

2010: Ranked #38 of Top 125 International Training OrganizationsTraining magazine

2009: Ranked #414 in North America on Deloitte Technology Fast 500 List; one of only 22 companies over $1B to make the listDeloitte

2009: NOC Named National Back-Office Customer Service Department of the YearStevie® Awards

2008: Received Most Innovative Product Award for the Application of SIP TrunkingTelephony magazine

2008: Ranked #66 of Top 125 International Training OrganizationsTraining magazine

2007: Named Most Innovative Competitive Carrier New Paradigm Resources Group

2007, 2006, 2005: Named Corporate Stewardship FinalistU.S. Chamber of Commerce Center for Corporate Citizenship

Corporate Values

Caring Culture

Open Communications

Unmatched Service

Personalized Solutions

Caring Culture

Community Connections

PAETEC strives to live up to our Corporate Value: Caring Culture

PAETEC offers select non-profit organizations up to 50% savings in telecommunications services through our Community Advantage program

All PAETEC senior officers serve on the board of a local charity, including: American Heart Association American Red Cross Habitat for Humanity Make-A-Wish Foundation United Way

The majority of our employees are active board members or volunteers in more than 300 charities nationwide

Open Communication

Customer Advisory Board Meeting

We Listen to Our Customers

Discuss business challenges

Build the foundation for PAETEC’s product and service investments through customer feedback

Access PAETEC senior executives

Network with peers

Customer Advisory Board Program

Regional forums with over 950 active members for knowledge sharing and relationship building between PAETEC and our customers

“I have been a CAB member for

the past three years and value the program completely. The LEGO Group truly benefits from the products, services, and actions that result from CABs.”

Joanne ZanettiLEGO Systems, Inc.

Unmatched Service

Industry-Leading Customer Satisfaction

PAETEC adopted the NPS methodology to measure the satisfaction of our customer base

Our December 2009 NPS increased from the adjusted Q2’09 NPS of 17.2

Non-PAETEC company (consumer) data was gathered from the “Satmetrix 2009 Net Promoter Industry Report: Telecommunications – Local & Long Distance”

PAETEC data was gathered from Sparks Research

0

PAETEC

18.8

-15

AT&T

Telecom NPS Benchmarks

-18

Verizon

-34

Qwest

Unmatched Customer Care

70 dedicated Customer Care representatives

225 highly trained Service and NOC technicians

PAETEC strives to answer

incoming calls by a live person in 20 seconds or less

Network Operations Center – Charlotte, NC

Network Operations Center – Rochester, NY

Network Operations Center – Cedar Rapids, IA

Personalized Solutions

Industry Focus

Commonwealth of Massachusetts

Miami Dade County

State of New York

State of South Carolina

Government Government

Bank of America

Citigroup

HSBC Bank

Wachovia Securities

Financial ServicesFinancial Services

American Breast Cancer Foundation

Dartmouth Hitchcock Medical Center

Lifespan

MedStar Health

HealthcareHealthcare Hyatt

Starwood Hotels & Resorts

Tempus Resorts

The Palms South Beach Hotel

Hospitality Hospitality

Boston University

Cornell University

Georgetown University

Stanford University

Higher EducationHigher Education

Core ProductsCore Products Value-Added ServicesValue-Added Services

DataData EquipmentEquipment ApplicationsApplications Data CenterData CenterVoiceVoice

Data

MPLS VPN

Managed Router Support

Dedicated Internet Access

Transport/Access

Ethernet Local Loop

Private Line

Fixed Wireless

Security

Hosted E-mail Security

Hosted Web Security

Network Firewall

Intrusion Detection &

Prevention System (IDPS)

Managed CPE Firewall

CPE

IP Phone Systems

Routers

Integrated Access

Devices

Media Gateways

Consulting

Network Engineering

Consultation

Hardware Maintenance

Support

Financing

Equipment for Services

Equipment Rental

Software for Services

Voice

Local

Long Distance

Toll-Free

Advanced Toll-Free

Advantage Business Lines

Direct Trunk Overflow (DTO)

Managed Fraud Protection

VoIP

Dynamic IP

Hosted IP Telephony

Conferencing

Audio Conferencing

Web Conferencing

Consulting

Network Diversity Engineering

Toll-Free Routing Consultation

Colocation Services

Data Backup &

Recovery

Dedicated Hosted

Server

Shared Web Hosting

PINNACLE

Communications

Management Suite

Hosted Broadcast

Notification

Product MatrixProduct Matrix

Core ProductsCore Products Value-Added ServicesValue-Added Services

DataData EquipmentEquipment ApplicationsApplications Data CenterData CenterVoiceVoice

CommunicationsCommunications All Data All Equipment All Voice

SecuritySecurity MPLS VPN

Hosted E-mail Security

Hosted Web Security

Network Firewall

Intrusion Detection & Prevention System (IDPS)

Managed CPE Firewall

Network Engineering Consultation

Managed Fraud Protection

Managed Managed ServicesServices

Managed Router Support

Managed CPE Firewall

Network Firewall

Intrusion Detection & Prevention System (IDPS)

Colocation Services

Data Backup & Recovery

Dedicated Hosted Server

Shared Web Hosting

Hosted IP Telephony

Managed Fraud Protection

FinancingFinancing Equipment for Services

Equipment Rental

Software for Services

Business Business ContinuityContinuity

MPLS VPN

Fixed Wireless

Private Line

Network Engineering

Consultation

Hardware Maintenance Support

Colocation Services

Data Backup & Recovery

Dedicated Hosted Server

Dynamic IP

Direct Trunk Overflow

Network Diversity Engineering

Toll-Free RoutingConsultation

Advanced Toll-Free

Hosted Broadcast Notification

BusinessBusinessIntelligenceIntelligence

Managed Fraud Protection

Hosted Broadcast Notification

PINNACLE Communications Management Suite

All Data Center

PINNACLE Communications Management Suite

All Applications

SolutionsSolutions

PAETEC SolutionsPAETEC Solutions

The PAETEC Difference

National network presence

Broad product portfolio

Personalized solutions

Trusted business partner

Unmatched customer service