Deltacom Expands Infinera Southeastern Network



HUNTSVILLE, Ala., Feb. 25 /PRNewswire-FirstCall/—ITC^DeltaCom, Inc.
(OTC Bulletin Board: ITCD), a leading provider of integrated communications
services to customers in the southeastern United States, today announced
the expansion of its Infinera (Nasdaq: INFN) Digital Optical Network into
Crestview, Florida and Columbus, Georgia.

Under its Interstate FiberNet carrier division, Deltacom responded to
customer demand for high bandwidth services in new locations by quickly
deploying additional equipment to support the delivery of 1Gbps, 2.5Gbps
and 10Gbps point-to-point circuits. Deltacom’s availability of collocation,
native Ethernet access and equipment-based Time Division Multiplexing (TDM)
access to the Infinera network enables even greater reach for high
bandwidth customer solutions.

“Infinera’s technology provides the engineering simplicity and rapid
delivery of modules that make it possible to quickly and reliably respond
to customer demand,” said Jim O’Brien, Deltacom’s Executive Vice President
of Operations. “The Crestview node was deployed and multiple 2.5Gbps wave
services were delivered to our customer in under 30 days.”

The company plans to deploy additional equipment and services in
Tallahassee, Florida in the second quarter of 2008.

ABOUT ITC^DELTACOM, INC.

ITC^DeltaCom, Inc. ("ITC^DeltaCom") headquartered in Huntsville,
Alabama, provides, through its operating subsidiaries, integrated
telecommunications and technology services to businesses and consumers in
the southeastern United States. ITC^DeltaCom has a fiber optic network
spanning approximately 14,500 route miles, including more than 11,000 route
miles of owned fiber, and offers a comprehensive suite of voice and data
communications services, including local, long distance, broadband data
communications, Internet connectivity, and customer premise equipment to
end-user customers. ITC^DeltaCom is one of the largest competitive
telecommunications providers in its primary eight- state region.
ITC^DeltaCom has interconnection agreements with BellSouth, Verizon, SBC,
CenturyTel and Sprint for resale and access to unbundled network elements
and is a certified competitive local exchange carrier (CLEC) in Arkansas,
Texas, Virginia and all nine BellSouth states. For more information about
ITC^DeltaCom, visit ITC^DeltaCom’s Web site at http://www.deltacom.com.

Investor Contact:  Media Contact:
Richard E. Fish Lee A. Kimball
Chief Financial Officer Senior Vice President, Marketing
256-382-3827 919-863-7149

SOURCE ITC^DeltaCom, Inc.

ITC^DeltaCom Reports 2007 Fourth Quarter and Full-Year Results



HUNTSVILLE, Ala., March 20 /PRNewswire-FirstCall/—ITC^DeltaCom, Inc.
(OTC Bulletin Board: ITCD), a leading provider of integrated communications
services to customers in the southeastern United States, today reported its
operating and financial results for the quarter and the year ended December
31, 2007.

For the quarter ended December 31, 2007, ITC^DeltaCom reported total
operating revenues of $122.0 million, a net loss of $(11.6) million, and
EBITDA* of $19.7 million (excluding stock-based compensation as explained
below). For the year ended December 31, 2007, ITC^DeltaCom reported total
operating revenues of $492.1 million, a net loss of $(177.0) million, and
EBITDA* of $77.0 million (excluding certain one-time costs and losses and
stock-based compensation associated with the Company’s refinancing and
recapitalization consummated on July 31, 2007 as explained below).

“Our investments in new products and customer service enhancements
resulted in strong customer growth in 2007, with a 15% increase in our core
facilities-based retail business lines,” said Randall E. Curran,
ITC^DeltaCom’s Chief Executive Officer. He continued, “At the same time,
we’ve maintained focus on increasing the efficiency of our network, and
we’re pleased to see the results of all of these initiatives in our 2007
results.”

Among its operating highlights for the fourth quarter and the year,
ITC^DeltaCom:

—Increased EBITDA (excluding $9.2 million of stock-based compensation
and $122.4 million of costs and losses from the extinguishment of debt
and unused equity commitment in connection with the refinancing and
recapitalization transactions it completed on July 31, 2007), to $77.0
million for the year, which represented a 19% increase over 2006 EBITDA
of $64.7 million (excluding $2.6 million of stock-based compensation,
$500,000 of restructuring expenses and $330,000 cost of hurricane
impact);

—Increased EBITDA (excluding $4.5 million of stock-based compensation)
to $19.7 million for the quarter, which represented a 19.4% increase
over EBITDA of $16.5 million (excluding $684,000 of stock-based
compensation and $22,000 restructuring expenses) for the fourth quarter
of 2006;

-- Increased unlevered free cash flow to $9.2 million for the quarter
compared to $7.3 million for the fourth quarter of 2006, an increase of
26%;

—Expanded its customer base by adding approximately 43,500 core
facilities-based retail business voice lines in service (including both
UNE-T and UNE lines), representing 15% growth from year end 2006 to
year end 2007 and increased those lines as a percentage of total retail
business voice lines in service from 75% to 81%;

—Grew business local, data and Internet revenues by $21.7 million for
the 2007 year, or 9.3%, and increased equipment sales for the 2007 year
by 7.9% over 2006;

—Reduced cost of services and equipment as a percentage of total
operating revenues to 47.2% for the 2007 year from 50.1% for the 2006
year by eliminating excess costs from our network;

—Strengthened its balance sheet by reducing its outstanding debt by
approximately $63 million, reducing its annual borrowing costs by
approximately $25 million, and eliminating approximately $7 million of
annual in-kind dividends on its formerly outstanding preferred stock
through the refinancing and recapitalization transactions completed on
July 31, 2007, and

—Generated more than $30 million in unlevered free cash flow for the
year.

“We’re pleased to report strong growth in our core retail revenues,
increased operating profitability, and over $30 million in unlevered free
cash flow during 2007,” said Richard E. Fish, Executive Vice President and
Chief Financial Officer. “In addition, we completed refinancing
transactions in 2007 that we believe have resulted in substantial
enhancements to shareholder value.”

* EBITDA represents net income (loss) before interest, taxes,
depreciation and amortization, all as disclosed in the consolidated
statements of operations and comprehensive loss. EBITDA is not a
measurement of financial performance under accounting principles
generally accepted in the United States. For information about
management’s reasons for providing data with respect to EBITDA, the
limitations associated with the use of EBITDA and a quantitative
reconciliation of EBITDA to net loss, as net loss is calculated in
accordance with generally accepted accounting principles, see the
accompanying table captioned “EBITDA Reconciliation.”

** Unlevered free cash flow is defined by ITC^DeltaCom as net cash
provided by operating activities, less capital expenditures, changes in
accrued capital-related costs and equipment purchased through capital
leases plus interest expense net of interest income, debt prepayment
penalties paid in cash and equity commitment fees paid, all as
disclosed in the consolidated statements of cash flows or the
consolidated statements of operations and comprehensive loss.
Unlevered free cash flow is not a measurement of financial performance
under accounting principles generally accepted in the United States.
For information about management’s reasons for providing data with
respect to unlevered free cash flow, the limitations associated with
the use of unlevered free cash flow and a quantitative reconciliation
of unlevered free cash flow to net cash provided by operating
activities, as net cash provided by operating activities is calculated
in accordance with generally accepted accounting principles, see the
accompanying table captioned “Unlevered Free Cash Flow Reconciliation.”