ValleyNet Announces ValleyFiber Initiative; New Staffing

For Immediate Release

October 26, 2007

White River Junction, VT

ValleyNet Announces ValleyFiber Initiative; New Staffing

Exactly 13 years ago, ValleyNet brought the first local dial-up internet access to the Upper Valley. ValleyNet today announced the formal launch of its ValleyFiber initiative to bring universal state-of-the-art high speed fiber telecommunications access to the Upper Valley.

Tim Nulty, the former head and founder of Burlington Telecom, a successful municipally-owned fiber-to-the-home network in Burlington, Vermont, will lead these efforts, assisted by his wife, Leslie, former CEO of the Hunger Mountain Co-op in Montpelier. Burlington Telecom's fiber network will soon be able to provide high speed internet access, as well as telephone and cable television services to 100% of the households and businesses in Burlington. In its initial service areas, over 40% of the households have subscribed to Burlington Telecom's service.

"ValleyFiber's strategy will be to work with ECFibernet (a group of 14 Vermont Upper Valley towns) and other Vermont towns to successfully serve the Vermont side of the Upper Valley and then work with towns in New Hampshire,"said Stan Williams, chairman of ValleyNet.

"Our ultimate ambition is to bring universal, fiber optic communication to underserved communities throughout Vermont and New Hampshire, using essentially the same financing structure used at Burlington Telecom, a non-recourse capital lease that involves no use of taxpayer funds," said Tim Nulty. "We believe that the universal availability of broadband internet in rural areas is just as important as access to electricity and telephone service was early last century."

"Tim brings a wealth of telecom experience to ValleyFiber from a long career in telecommunications in both the private and public sectors, capped by his success at Burlington Telecom," said Williams. "We will be building what is considered by telecommunications professionals to be 'the holy grail' of telecommunications networks, and we at ValleyNet are excited to work directly with Tim and Leslie to help build ValleyFiber and other regional networks."

ValleyFiber's "hub," the center of the network where services originate and the network is managed, is likely to be situated in Hartford. Hunter Rieseberg, Hartford's town manager said, "We are eager to be the host for ValleyFiber"s hub and headquarters. White River Junction has been a hub for the Upper Valley since its settlement, first through its location at the junction of the White and Connecticut rivers, then as a railroad junction, then as an interstate highway junction, and now as a junction on the so-called 'information superhighway'." The hub is expected to employ upwards of 20 people in management, technical operations and customer service. Additional employment will be created by the network's use of contractors to string fiber optic cable, connect customers, and maintain the network.

ValleyFiber is currently working with ECFibernet, a group of east central Vermont towns, and other towns in Vermont, including Hartford, to get voter approval for towns to participate in this project at town meetings in March of 2008.

Jim Masland, a Vermont house member and ECFibernet representative from Thetford, said "I believe that ValleyFiber has greatly improved the chances of bringing universal fiber optic communications to our participating towns by bringing Tim Nulty's expertise to the Upper Valley."

A series of public informational meetings is in progress, with the next meetings scheduled at 6:30 PM at the following locations:

Oct 29th- Chandler Gallery, Randolph

Nov 5th- Montshire Museum, Norwich

Nov 6th- Whitcomb HS, Bethel

Nov 29th - Bugbee Senior Center, 262 N. Main Street, White River Jct.

Financing and detailed design of the network is expected to be completed during the summer of 2008, with the installation of fiber optic cables to follow. The first customer is expected to be connected in the fall of 2009.

Potential ValleyFiber customers throughout the Upper Valley can learn more about ValleyFiber today (and pre-subscribe to ValleyFiber services!) by visiting www.valleyfiber.net. "Pre-subscription, as well as the town meeting vote, is an important part of the financing process," said Leslie Nulty. "The more voters and subscribers that show support for this project, the easier it will be to raise private financing for these projects."

ValleyNet's non-profit mission is to advocate for universal and effective internet access.

For further clarification, contact Stan Williams at (802) 649-1719 or stan.williams@valley.net.