Fiberlink Demonstrates Strong Sequential Growth in First Half of 2004

Accelerating Managed Services and Software Revenue Drives Double-Digit Revenue Growth

BLUE BELL, Pa. - Aug. 31, 2004 - Fiberlink Communications Corp., a trusted enterprise partner for managed remote access and security services, today announced that company revenue increased 19 percent sequentially for the first six months of 2004 as compared to the second half of 2003. Fiberlink also realized its fourteenth consecutive quarter of revenue growth while recording record profits

"The onslaught of remote workers is fueling strong demand for technology that enhances communication, collaboration and overall business productivity," said Matthew Kovar, vice president of Security Solutions & Services at The Yankee Group. "Today, the remote access market is approaching a billion dollars a year and the demand for such solutions will only rise as teleworking, mobile and wireless computing, flexible work schedules, smartphones and laptops force enterprises to commit to affordable and secure remote access. Since we recognized Fiberlink over two years ago for creating the Remote Endpoint Services (REPS) market, the company has consistently championed the need for 'responsible remote access' in the enterprise space. Based on its recent business success, it appears that the message is resonating strongly in the marketplace."

Enterprises worldwide are dealing with the unrelenting communications demands of a more mobile workforce. At the same time IT departments are also faced with a business environment saturated with increasingly frequent and damaging security threats. The convergence of these two forces of connectivity and security are factors in the company's strong performance. While Fiberlink saw strong demand for its dial-up, wireless and broadband access solutions, growth was especially strong in software and managed services, which combined grew by over 70 percent sequentially for the first six months of 2004.

Other 1H 2004 Highlights Include:

• Fiberlink acquired the enterprise remote access business from Level 3
• Fiberlink partnered with BigFix to deliver the first complete vulnerability management and endpoint configuration service
• Fiberlink introduced the industry's first remote access client to integrate 3G and Wi-Fi connectivity
• Fiberlink signed 25 channel partners worldwide in the first half of 2004 on widespread demand for its enterprise remote access services
• Fiberlink positioned in the Leader quadrant in Gartner's "U.S. Managed Remote-Access 1H04 Magic Quadrant" report
• Fiberlink announced that it has over 100,000 personal firewalls under management, making it the single largest provider of managed endpoint security services in the remote access marketplace
• Forrester Research named Fiberlink the overall winner in "Extending and Protecting Network Perimeters and Applications" category at Emerging Technology Showcase

"Fiberlink's growth for the first six months of the year continues to validate our feeling that enterprises need a more comprehensive remote access solution that extends beyond simple connectivity," said Jim Sheward, president and chief executive officer of Fiberlink. "The customers I speak with on a day-to-day basis say it is critical for them to have a managed services partner that delivers a holistic remote-working solution - one that provides total control over their costs, connectivity, and compliance requirements."

Over 80 Fortune 1000 customers and hundreds more enterprise customers and partners rely on Fiberlink to help them respond to the challenge of integrating remote access with protection from viruses and worms by deploying managed VPNs and layered security services in an affordable integrated package. Fiberlink helps these enterprises provide their employees with secure remote connectivity services in over 150 countries worldwide. These solutions have also contributed to the company's success in attracting a wide range of Fortune 1000 customers, including large financial services, healthcare, retail and government organizations.

Recently, Fiberlink outgrew its original headquarters in Blue Bell, Pa. Spurred by the company's rapid growth over the past year, Fiberlink has plans to relocate its headquarters to a new state-of-the-art facility, also in Blue Bell, later this year.

About Fiberlink

Fiberlink is a leading provider of secure remote access solutions, unifying worldwide remote access, management and enforcement within existing IT policy. Fiberlink addresses the growing infrastructure complexities of enterprise access brought on by the demands of an expanding business ecosystem. From employees to partners, remote offices to extranets, dial-up to wireless to broadband, Fiberlink allows enterprises to capitalize on extended business opportunities. Multi-network redundancy, best-of-breed application services and support, low total cost of ownership and minimal impact on IT help make Fiberlink an important business partner.

With more than 500,000 corporate users, analyst firms such as Gartner, Burton Group and Yankee Group recognize Fiberlink as a leader and innovator in remote access services. Fiberlink customers include General Electric, BMC Software, Computer Sciences Corporation, Royal Caribbean and The Gillette Company. Headquartered in Blue Bell, Pa., Fiberlink has offices throughout North America, Europe and Asia Pacific.

For more information on Fiberlink, visit its Web site at http://www.fiberlink.com.

For Additional Information Contact:
Schwartz Communications
Joe Palladino or Lesley Cannata
MaaS360@schwartz-pr.com
(781) 684-0770

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