Press Release

West Coast Value-Added Reseller to Enhance PAETEC’s Equipment Capabilities

FAIRPORT, N.Y., Jun 08, 2010 (BUSINESS WIRE) –PAETEC Holding Corp. (NASDAQ GS: PAET), a FORTUNE 1000 company, announced today that its wholly-owned subsidiary, PAETEC Corp., has closed on the acquisition of Quagga Corporation, a privately-held Sacramento-based company. As a world-class systems integrator, Quagga is the top Avaya partner on the West Coast, with expertise in IP-based voice and video systems for medium and large businesses. The company also specializes in data and business process management as well as consulting, design and maintenance of communication systems. Upon the closing of this acquisition, Quagga will become part of PAETEC’s Integrated Services Group (ISG) focused on delivering complete equipment-based communications solutions to businesses nationwide.

“The acquisition of Quagga fits our five-year strategic plan and further extends our ability to fight unfair in the marketplace by offering unique capabilities which our competitors simply can’t match,” said Douglas Derstine, PAETEC’s president of wholesale also overseeing equipment sales. “For nearly 10 years, we’ve had a robust Value Added Reseller presence in the Eastern United States. The addition of Quagga now allows our equipment capabilities to more geographically mirror those of our national network business.”

Quagga was founded in 2003 by Ken Apperson and Scott Knorp with a focus on delivering unmatched service through the integration of IP-based voice and video solutions. Over the past six years, the company has grown to 80 employees and is the largest Avaya partner in the western region as well as a leading integrator of Polycom, Lifesize and Tandberg video collaboration applications. With sales offices throughout California, New Jersey, Texas, Arizona, Missouri and Nevada, the company’s 150,000 IP voice and video endpoints worldwide are the most of any value added reseller (VAR) in the nation,

“Being a part of a national leader in telecommunications like PAETEC will yield immediate benefits for our customers and employees alike,” said Scott Knorp, co-founder of Quagga. “Not only do we share a unique passion for serving customers with complete, personalized business communications solutions, but now have a new, immense product portfolio to offer our customers.”

Quagga will initially keep its name and continue to operate under the leadership of Apperson and Knorp. For more information on Quagga, visit their web site at www.quagga.com.

Press Release

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