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 – $238M

Free Cash Flow – $118M ** Adjusted EBITDA Less CAPEX

Company Highlights

84 of the top 100 U.S. MSAs

5.7 million access line equivalents

Approximately 4,000 employees

ISO 9001:2000 certified

Headquartered in Rochester, NY

Employee-led “Green Team”

Data Center – Conshohocken, PA

88 Voice Switches32 Soft Switches107 Backbone Routers3 Network Operations Centers

2 Class-A Data Centers19,113 Route Miles of Fiber

PAETEC’s Network

Industry Recognition

2009: Ranked in Top 10 Best Large Companies to Work For in New York StateNYS Society of Human Resource Management

2009: Ranked #45 of Top 125 International Training Organizations, marking third consecutive year in Top 125Training magazine

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

Number of States Served:Number of States Served:

QwestQwest 14 States 14 States

AT&T AT&T 22 States 22 States

Verizon Verizon 25 States 25 States

PAETECPAETEC 45 States 45 States

*Business Local Service*Business Local Service

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

Unmatched Customer Care

65 dedicated Customer Care representatives

244 highly trained 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

If budget wasn’t an issue, how much more equipment could you sale?

PAETEC Equipment for Services (EFS):

Equipment for Services-Equipment for Services-program is a profit sharing mechanism that program is a profit sharing mechanism that provides our customers with a unique method provides our customers with a unique method for acquiring what they need for their for acquiring what they need for their business, with minimal or no capital outlay, business, with minimal or no capital outlay, while recognizing a reduction in current while recognizing a reduction in current network cost.network cost.

Overview:

Over $70 million in equipment and software Over $70 million in equipment and software funded through our EFS program funded through our EFS program

70% monthly lease payments are subsidized70% monthly lease payments are subsidized

Average amount financed per customer is Average amount financed per customer is $16 thousand $16 thousand

PAETEC will perform the billing and collecting function PAETEC will perform the billing and collecting function of the lease on the customer’s PAETEC invoice of the lease on the customer’s PAETEC invoice

Why does PAETEC offer this program?

Benefits to PAETECBenefits to PAETEC

Market DifferentiatorMarket Differentiator EFS helps set PAETEC apart from competitors

Customer RetentionCustomer Retention The program is designed to allow PAETEC to commit to

additional equipment / software and extend the term of the customer’s contract

Longer Contract TermLonger Contract Term With an extended contract term, the lease payment decreases.

It also allows PAETEC to share more of its profit in the form of a credit towards the customer’s monthly lease

The PAETEC Difference

National network presence

Broad product portfolio

Personalized solutions

Trusted business partner

Unmatched customer service