HispanicBusiness

LOUISVILLE, CO -- (Marketwire) -- 02/08/13 -- Zayo Group, LLC ("Zayo Group" or "the Company"), a leading provider of Bandwidth Infrastructure and network-neutral colocation and interconnection services, announced results for the three months ended December 31, 2012.

The Company has experienced sequential quarter revenue and Adjusted EBITDA growth since inception. Second quarter growth was a function of both organic growth and acquisition-related growth, resulting primarily from the recent acquisitions of FiberGate, USCarrier and First Telecom Services.

During the three months ended December 31, 2012, the Company made net capital expenditures of $58.9 million, which included adding 436 buildings to the network.

Financial Highlights

FY 2013 Q2 compared to FY 2013 Q1

•Zayo Group generated quarterly revenue of $243.5 million; a $13.8 million sequential quarter increase. •Adjusted EBITDA for the quarter was $137.3 million, which was $14.7 million higher than the prior quarter. •Loss from continuing operations of $20.0 million for the quarter was $33.4 million lower than the $53.4 million net loss for the previous quarter.

FY 2013 Q2 compared to FY 2012 Q2

•Quarterly revenue and Adjusted EBITDA increased by $154.5 million and $92.2 million, respectively, over the second quarter of fiscal year 2012. •Quarterly loss from continuing operations increased by $18.9 million over the first quarter of fiscal year 2012.

Recent Developments

Acquisitions closed during FY 2013 Q2

USCarrier

In connection with the Company's acquisition of American Fiber Systems on October 1, 2010, the Company acquired an ownership interest in USCarrier. As of June 30, 2012, the Company's ownership in USCarrier was comprised of 55% of the outstanding Class A membership units and 34% of the outstanding Class B membership units. On October 1, 2012, the Company acquired the remaining equity interests in USCarrier not previously owned for total consideration of $15.9 million, subject to certain post-closing adjustments. Beginning October 1, 2012, the Company began to recognize 100% of the results of USCarrier in its consolidated statement of operations. The acquisition was funded with cash on hand.

The USCarrier business operates a 3,700 route mile regional fiber network that connects major markets such as Atlanta, Jacksonville, Tallahassee, Nashville and Chattanooga along with 40 smaller cities throughout the Southeast region of the United States.

First Telecom Services

On December 14, 2012, the Company acquired 100% of the equity interest in First Telecom Services, an Ohio limited liability company, for total consideration of $110.4 million, subject to certain post-closing adjustments. The First Telecom Services business operates an 8,000 route mile regional fiber network that connects markets throughout the Northeastern and Midwestern United States. First Telecom Services provided dark fiber and wavelength services primarily to wireline and wireless carrier customers. The acquisition was funded with cash on hand.