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RHYTHMS WINS RIGHT TO NATIONWIDE LINE SHARING IN A LANDMARK DECISION FOR THE DSL INDUSTRY

Customers to Receive More Choices in the High-Speed Internet Access Market

 Printable Version

ENGLEWOOD, CO, November 18, 1999 - Rhythms NetConnections (Nasdaq: RTHM), a North American provider of digital subscriber line (DSL)-based, high-speed Internet and networking access solutions, today announced its support for the Federal Communications Commission's (FCC's) decision to adopt Rhythms' long-standing proposal to order line sharing -- allowing customers to receive DSL services from competitive providers over the same telephone lines that already carry their voice services.

"Today, the FCC gave customers the ability to order DSL services from competitors without changing their voice carriers or installing a second telephone line," said Catherine Hapka, Chairman and CEO of Rhythms. "This is a landmark decision for the industry, and we expect it to favorably impact both the cost and speed with which we can provide DSL services."

The incumbent local exchange carriers (ILECs) currently share their telephone lines for their own DSL services, but they have refused to share them with competitive local exchange carriers (CLECs).

"The FCC has given customers more choices in the high-speed Internet access market," said Jeffrey Blumenfeld, General Counsel of Rhythms. "This order is exactly what competition is all about -- customer choice and a level playing field."

Rhythms has led the fight to force ILECs to allow line sharing, with initiatives targeted at both the FCC and state regulators. Last spring, Rhythms presented the line-sharing issue to the Minnesota Public Utilities Commission (MPUC). In September, the MPUC ordered U S WEST to work with Rhythms and CLECs within a 45-day time limit to test line sharing.

About Rhythms

Rhythms NetConnections Inc. (Nasdaq: RTHM) is a North American provider of DSL-based, high-speed Internet and networking access solutions. Rhythms was chosen by FORTUNE magazine as one of its "Cool Companies for 1999." Based in Englewood, Colo., Rhythms currently serves 33 markets, covering 56 MSAs. Telecommunications services for Rhythms are provided by Rhythms Links Inc., a wholly owned subsidiary of Rhythms. For more information, call 1-800-RHYTHMS (1-800-749-8467), or visit the company's Web site at http://www.rhythms.com/.

Contacts:

Corinne Mahoney
Rhythms Public Relations
(303) 876-5052
cmahoney@rhythms.net

Eric Hoffman
Edelman Public Relations
(202) 326-1724
ehoffman@dc.edelman.com

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This news release may contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially because of various risks. These risks include risks associated with the demand and competition for the services and products to be sold by Rhythms, the continued availability of adequate financing to support our activities, the timing of rollouts in additional regions, the number of potential customers who could access such services, and our dependence on third parties for services such as providing collocation and transmission facilities, providing marketing and sales efforts, and supplying and installing equipment. For an expanded discussion on these and additional risks associated with Rhythms' business, please see the documents filed by Rhythms NetConnections Inc. with the U.S. Securities and Exchange Commission.

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