Telergy Achieves Second Consecutive Record Quarter

$175 Million in New Contracts Over 6 Months 'Generates' $102 Million Cash



2,700 Mile Fiber Optic Network Nears Completion



Apr 11, 2001, 01:00 ET from Telergy, Inc.

    EAST SYRACUSE, N.Y., April 11 /PRNewswire/ -- Telergy, Inc., a
 privately-owned developer of high-speed fiber-optic networks and provider of
 bundled broadband services in the Northeastern U.S., today announced that it
 successfully secured $62 million in contracted revenues during the first
 quarter of 2001 -- a 332 percent increase over the same period a year earlier.
 According to the Company, its total of $175 million in new contracts in the
 last two quarters has produced $102 million in cash received over the past
 four months.
     The Company also said that, during the current quarter, it expects to meet
 its goal of completing a 2,700-mile fiber-optic network web serving North
 America's most population-dense corridor -- stretching from Montreal through
 New York, New Jersey, Pennsylvania and on to Washington, D.C.  Telergy deploys
 its networks along utility rights-of-way.
     The recent growth in Telergy's revenues -- contracted and in-cash --
 results from several "dark fiber" agreements with major telecommunications
 companies, along with carrier wholesale revenues.  In addition, the Company
 has generated $291 million in backlog revenues from private networks designed
 for "enterprise customers" -- major corporations and public institutions.
 These include one of Wall Street's largest investment banking firms and a
 large group of educational institutions.  Also, the Company was awarded major
 contracts for Phases I, II and III to provide a high-speed sonet-based data
 network for the New York State Unified Court System, and is delivering an
 advanced gigabit ethernet network in the greater Albany area.
     "The results over the last two quarters have been a tremendous
 accomplishment for our Company with the difficult market conditions the
 technology sector has faced," said Brian Kelly, CEO.  "In fact, those
 difficult conditions are helping to clear the field, while we maintain our
 focus and take advantage of our unique positioning.  The Northeast region is
 the nation's most heavily-used corridor and our last-mile assets and
 fiber-rich networks have contributed a great deal to our most recent success."
     "The execution of our business plan and the vision this company has put
 forth has never varied," added J. Patrick Barrett, Telergy President.  "As
 many corporations in our sector re-evaluate their businesses, we find it
 extremely positive to know that our plan appears to be right on target. With
 the shakeout in the telecommunications sector, we believe our company is well
 positioned to take advantage of the changing market conditions.  We anticipate
 being rewarded for the patient long-term strategy we have worked so diligently
 to put in place."
 
     About Telergy
     Founded and headquartered in Syracuse, New York, Telergy in 1995 began
 deploying a broadband high-speed fiber-optic network along utility
 rights-of-way with the purpose of achieving end-to-end last-mile connectivity
 for bundling our advanced telecommunications and data services.  Its
 relationships and partnerships with Niagara Mohawk, NYSEG, Consolidated
 Edison, GPU, El Paso Global Networks and certain National Grid electric
 subsidiaries have allowed Telergy to secure contiguous comprehensive
 end-to-end rights-of-way in the Northeastern United States along utility
 rights-of-way.  By the second quarter of 2001, Telergy expects to have a
 network that is comprised of over 2,700 miles stretching from Montreal Canada
 to New York, New Jersey, Pennsylvania and the District of Columbia. More
 information is available at the company's website: http://www.telergy.net.
 
 

SOURCE Telergy, Inc.
    EAST SYRACUSE, N.Y., April 11 /PRNewswire/ -- Telergy, Inc., a
 privately-owned developer of high-speed fiber-optic networks and provider of
 bundled broadband services in the Northeastern U.S., today announced that it
 successfully secured $62 million in contracted revenues during the first
 quarter of 2001 -- a 332 percent increase over the same period a year earlier.
 According to the Company, its total of $175 million in new contracts in the
 last two quarters has produced $102 million in cash received over the past
 four months.
     The Company also said that, during the current quarter, it expects to meet
 its goal of completing a 2,700-mile fiber-optic network web serving North
 America's most population-dense corridor -- stretching from Montreal through
 New York, New Jersey, Pennsylvania and on to Washington, D.C.  Telergy deploys
 its networks along utility rights-of-way.
     The recent growth in Telergy's revenues -- contracted and in-cash --
 results from several "dark fiber" agreements with major telecommunications
 companies, along with carrier wholesale revenues.  In addition, the Company
 has generated $291 million in backlog revenues from private networks designed
 for "enterprise customers" -- major corporations and public institutions.
 These include one of Wall Street's largest investment banking firms and a
 large group of educational institutions.  Also, the Company was awarded major
 contracts for Phases I, II and III to provide a high-speed sonet-based data
 network for the New York State Unified Court System, and is delivering an
 advanced gigabit ethernet network in the greater Albany area.
     "The results over the last two quarters have been a tremendous
 accomplishment for our Company with the difficult market conditions the
 technology sector has faced," said Brian Kelly, CEO.  "In fact, those
 difficult conditions are helping to clear the field, while we maintain our
 focus and take advantage of our unique positioning.  The Northeast region is
 the nation's most heavily-used corridor and our last-mile assets and
 fiber-rich networks have contributed a great deal to our most recent success."
     "The execution of our business plan and the vision this company has put
 forth has never varied," added J. Patrick Barrett, Telergy President.  "As
 many corporations in our sector re-evaluate their businesses, we find it
 extremely positive to know that our plan appears to be right on target. With
 the shakeout in the telecommunications sector, we believe our company is well
 positioned to take advantage of the changing market conditions.  We anticipate
 being rewarded for the patient long-term strategy we have worked so diligently
 to put in place."
 
     About Telergy
     Founded and headquartered in Syracuse, New York, Telergy in 1995 began
 deploying a broadband high-speed fiber-optic network along utility
 rights-of-way with the purpose of achieving end-to-end last-mile connectivity
 for bundling our advanced telecommunications and data services.  Its
 relationships and partnerships with Niagara Mohawk, NYSEG, Consolidated
 Edison, GPU, El Paso Global Networks and certain National Grid electric
 subsidiaries have allowed Telergy to secure contiguous comprehensive
 end-to-end rights-of-way in the Northeastern United States along utility
 rights-of-way.  By the second quarter of 2001, Telergy expects to have a
 network that is comprised of over 2,700 miles stretching from Montreal Canada
 to New York, New Jersey, Pennsylvania and the District of Columbia. More
 information is available at the company's website: http://www.telergy.net.
 
 SOURCE  Telergy, Inc.