-Broadweave now official owner and operator of iProvo network; surpasses financial projections
in first 60 days-

SALT LAKE CITY – August 30, 2008 – On Friday, August 29, 2008, Broadweave Networks completed the acquisition of the iProvo network; officially becoming the sole owner and operator of what was the largest municipal fiber-to-the-premises network in the United States.

“We are pleased with the positive feedback we have received from iProvo customers as they have worked with and interacted with Broadweave over the last 60 days,” said Mayor Lewis K. Billings.  “Given the complexity of this project and transaction, we are very pleased to announce that our deal with Broadweave is now fully signed, sealed and delivered.”

With 60 days of operations under its belt, Broadweave has surpassed its financial objectives.  Broadweave also achieved an increase in sales since taking over the fiber-optic network, adding new residential and business customers at a rate that outpaces its expectations.  “It is Broadweave’s hope to earn the business of every business and residential customer in Provo,” said Broadweave CEO, Steve Christensen.

EsNet, Ltd., a local venture capital firm, and other existing Broadweave investors increased their investment in Broadweave Networks.  “We are convinced that Broadweave represents a highly promising investment opportunity, and are delighted to lead this round of financing to support the company’s growth, including the transition of the iProvo network to Broadweave,” said David Moon, general partner of EsNet. “We have great confidence in the fundamentals underlying Broadweave’s strategy and direction, and in the company’s future.  As a Utah County-based investment firm, we are dedicated to ensuring that our communities remain on the forefront of innovation and quality of life.”  
While Sorenson Capital and Broadweave did not consummate a financing transaction, Fraser Bullock, a managing director of Sorenson Capital and an existing investor in Broadweave, has increased his investment in Broadweave.  
The acquisition makes Broadweave one of the largest Fiber-To-The-Home (FTTH) network operators in the country with a network that passes 36,000 homes, businesses, government buildings, and schools at speeds up to 1,000 times faster than cable or DSL.

Broadweave also announced that its goals now extend well beyond residential customers. In conjunction with the final close of the acquisition, Broadweave has launched its fiber-optic services to businesses.  As of August, the Company has added many new enterprise accounts with plans to grow business services through direct sales and strategic relationships.

Christensen notes that Broadweave’s strong sales growth over the past 60 days has made additional acquisitions unnecessary.  “Broadweave will continue to win customers rather than buy them” Christensen said.  While Broadweave did not acquire Nuvont and Veracity, Broadweave has signed contracts with those providers and will continue to provide wholesale fiber-optic network services to them.  “I look forward to long lasting relationships with Nuvont and Veracity, and we remain committed to providing a quality network service to their customers,” he said.

For more information about Broadweave and its services, visit www.broadweave.com.

About Broadweave
Broadweave Networks (www.broadweave.com) delivers its “Triple-Weave” suite of voice, video, and data services via the Company’s own Fiber-To-The-Premises (FTTP) networks.  Until recently, Broadweave has focused on deploying its fiber networks in new planned communities.  Broadweave’s acquisition of the iProvo network makes it one of the country’s largest FTTP network operators.  Broadweave also delivers data services, commercial telephony, and hosted Voice over IP (VOIP) communications services to small to mid-size businesses and enterprises.  

About EsNet, Ltd.
EsNet (www.esnetgroup.com) is a private investment partnership focused on early-stage investments in information technology companies and real estate.  Located in Utah County, EsNet leverages its extensive management experience in software and Internet technology companies to help entrepreneurs develop companies that will have a lasting impact in the industry.

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