FOR IMMEDIATE RELEASE

PAETEC Awarded Department of Defense Contract to Supply Fiber Services to the U.S. Army Aberdeen Proving Ground

Contract allows the facility to handle influx of personnel as a result of the Base Closure and Realignment initiative

HERNDON, Va. — August 17, 2011 — PAETEC Holding Corp. (NASDAQ GS: PAET) and its subsidiaries which serve the growing network needs of government enterprises and carrier customers announced today that it has been awarded a three-year contract by the Defense Information System Agency (DISA) to provide the U.S. Army Aberdeen Proving Ground with PAETEC's highly dependable fiber infrastructure.

PAETEC owns and operates a 36,800 route-mile fiber infrastructure trusted by government entities, carriers, and enterprise organizations nationally. The contract provides the Aberdeen Proving Ground with high-quality fiber services including increased fiber network capacity, diverse fiber access points, and Dense Wave Division Multiplexing (DWDM) over the company's transport network as part of the DISA backbone network expansion.

"Military facilities must always be reliable in their communication capabilities," said Mike Magliato, PAETEC vice president of government solutions. "This contract is an excellent demonstration of how our fiber network services can provide solutions that are high-quality and dependable."

PAETEC's services are also providing the facility with a secure, expanded network infrastructure that is capable of handling the communication needs of a larger population. The proving ground will be experiencing a staff increase in the thousands as a result of the Base Realignment and Closure (BRAC) initiative created by Congress. However, it must continue to uphold the Department of Defense's DISA requirements of implementing end-to-end diverse networks for critical data sites.

"With a higher amount of personnel depending on reliable and diverse network solutions, our fiber services track record in the federal sector proves that we can provide effective upgrades to meet government requirements," said Clint Heiden, president of PAETEC fiber services. "Our extensive fiber network allows us to provide truly diverse and redundant communications to a variety of agencies and facilities."

PAETEC and its subsidiaries have been serving governmental entities, such as the Department of Defense and Defense Information Systems Agency, FAA, Department of Treasury, Department of Veterans Affairs, U.S. Army, Air Force and Navy, U.S. Courts, and the Department of Homeland Security. In 2010, the company announced the activation of the 500th high capacity circuit delivered to the United States Department of Defense (DoD). Circuit speeds for the DoD range from DS-3 to 10 Gbps wavelengths, covering 14 states and more than 150 locations.


About PAETEC

PAETEC (NASDAQ GS: PAET), a Fortune 1000 company, is personalizing communications and energy solutions in 86 of the top 100 metropolitan areas across the United States. We offer a comprehensive suite of network services (voice, data and fiber solutions), as well as managed services, cloud and data center services, software and technology, and energy services. For more information, visit www.paetec.com.

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