Telscape Completes Acquisition of Sage Telecom

Telscape Communications, Inc., a leading competitive local exchange

carrier (CLEC), today announced that it has received final regulatory

approval and completed the acquisition of Sage Telecom, Inc. (Sage) from

Silver Point Capital. Financial terms were not disclosed.

Sage is one of the nation’s largest CLEC’s focused on residential and

small business customers in suburban and rural communities. The

privately-held company serves customers across 12 states and is known

for its cost-effective local, long distance and internet services,

simple and easy-to-understand calling plans and high-quality customer

service. Sage is also recognized for its outstanding customer benefits

such as free Sage-to-Sage customer long distance calling, refer-a-friend

monthly fee credits, holiday discounts and Select Services for its best

customers.

“The acquisition of Sage is an important strategic step for Telscape as

we now have immediate access to a broader marketplace for our

diversified service offerings and to the operational expertise and

innovative capabilities of Sage and its employees,” said Nathan R.

Johnson, Chairman of the Board for Telscape. “Together we expect to gain

increased operating leverage, profitability and growth in our business

lines.”

Sage will continue to provide its customers with friendly service and

competitive local, long distance and internet service plans from its

Richardson, Texas headquarters and service partner locations throughout

its operating territory.

Redwood Capital based in New York, NY served as the exclusive financial

advisor to Telscape Communications, Inc. regarding both the merger and

financing.

About Telscape Communications, Inc.

Telscape Communications, Inc. (“Telscape”) was founded in 1999 as a

facilities-based Competitive Local Exchange Carrier services provider

serving Hispanic American consumers throughout Southern California and

Nevada with concentrations of customers in Los Angeles, San Diego and

Las Vegas. Telscape offers local and long distance access, network

features, high speed internet and international calling services to

residential customers as well as wireless services and mobile data

through a Mobile Virtual Network Operator.

Headquartered in Los Angeles, California, Telscape is a privately-held

company. For more information on Telscape and its services, please visit www.telscape.net.