PAETEC: America’s Premier Alternative

to Incumbent Local Carriers

January 6, 2008January 6, 2008

PAETEC’s mission is to be the most

customer and employee-oriented

communications provider.

“PAETEC rises above the communications service provider pack.”

Forrester Research, May 2008

Agenda

Financial Highlights

Company Highlights

PAETEC’s Network

Industry Recognition

Caring Culture

Open Communication

Unmatched Service

Personalized Solutions

The PAETEC Difference

Financial Highlights

NASDAQ: PAET

Revenue – $1.6B *

Adjusted EBITDA – $240M *

Free Cash Flow – Over $100M *+

* Projected Pro Forma 2008

+ Adjusted EBITDA Less CAPEX

Company Highlights

Serve 82 of top 100 U.S. MSAs in ‘08

4.47 million access line equivalents

4,000 employees / customer advocates

ISO 9001:2000 certified

Headquartered in Rochester, NY

Employee-led “Green Team”

Data Center – Conshohocken, PA

77 Voice Switches39 Soft Switches53 Backbone Routers3 Network Operations Centers

2 Class-A Data Centers17,000 Route Miles of Fiber

PAETEC’s Network

Industry Recognition

2008: Received Cisco Customer Satisfaction Excellence Recognition Based on Cisco customer surveys

2007: Ranked #66 of Top 125 International Training Organizations Training magazine

2007: Named Most Innovative Competitive Carrier New Paradigm Resources Group

2007, 2006, 2005: Named Corporate Stewardship Finalist U.S. Chamber of Commerce Center for Corporate Citizenship

2005: Received American Business Ethics Award Society of Financial Services Professionals

Corporate Values

Caring Culture

Open Communications

Unmatched Service

Personalized Solutions

Caring Culture

Community Connections

PAETEC strives to live up to our Corporate Value: Caring Culture

PAETEC leaders are allocated funds to support PAETEC leaders are allocated funds to support charities of their departments’ choice, including: charities of their departments’ choice, including: American Heart AssociationAmerican Heart Association American Red CrossAmerican Red Cross Habitat for HumanityHabitat for Humanity Make-A-Wish FoundationMake-A-Wish Foundation United WayUnited Way

All PAETEC senior officers serve on the board All PAETEC senior officers serve on the board of a local charity of a local charity

The majority of our employees are active board members / The majority of our employees are active board members / volunteers in more than 300 charities nationwide volunteers in more than 300 charities nationwide

Open Communication

2007 Customer Advisory Board Meeting

We Listen to Our Customers

Discuss business challenges

Build the foundation for PAETEC’s product and service investments through customer feedback

Access PAETEC senior executives

Network with peers

Customer Advisory Board Program

80+ regional forums for knowledge sharing and relationship building between PAETEC and our customers

“I have been a CAB member for

the past three years and value the program completely. The LEGO Group truly benefits from the products, services, and actions that result from CABs.”

Joanne ZanettiLEGO Systems, Inc.

Unmatched Service

Unmatched Customer Care

65 dedicated Customer Care representatives

244 highly trained NOC technicians

PAETEC strives to answer

incoming calls by a live person in 20 seconds or less

Network Operations Center – Charlotte, NC

Network Operations Center – Rochester, NY

Network Operations Center – Cedar Rapids, IA

Industry-Leading Customer Satisfaction

Net Promoter Score (NPS) measures highly satisfied customers

PAETEC adopted the NPS methodology to measure the satisfaction of our customer base

Data for non-PAETEC companies was gathered from the “Net Promoter Telecommunications Industry Report of 33 Telecommunications Companies – June 2006,” completed by Satmetrix Systems.

0

PAETEC

22.7

BellSouth

16.08Verizon

14.48

-5.7

SBC -8.45

AT&T-11.01

Qwest

-28.93

Sprint

Telecom NPS Benchmarks

Personalized Solutions

Industry Focus

Commonwealth of Massachusetts

Miami Dade County

State of New York

State of South Carolina

Government Government

Bank of America

Citigroup

HSBC Bank

Wachovia Securities

Financial ServicesFinancial Services

American Breast Cancer Foundation

Dartmouth Hitchcock Medical Center

Lifespan

MedStar Health

HealthcareHealthcare

Hyatt

Starwood Hotels & Resorts

Tempus Resorts

The Palms South Beach Hotel

Hospitality Hospitality

Boston University

Cornell University

Georgetown University

Stanford University

Higher EducationHigher Education Bond, Schoeneck & King

Cadwalader, Wickersham & Taft

Haylor, Freyer & Coon

Stantec

Professional ServicesProfessional Services

Bobcat of Central Florida

iPARTY

Kinney Drugs

Planet Hollywood

RetailRetail

Core ProductsCore Products Value-Added ServicesValue-Added Services

DataData EquipmentEquipment ApplicationsApplications Data CenterData CenterVoiceVoice

Data

MPLS VPN

Private Line

Fixed Wireless

Managed Router Support

Access

Ethernet Local Loop

Dedicated Internet Access

Security

Hosted E-mail Security

Hosted Web Security

Hosted Firewall

Managed CPE Firewall

IP PBX Allworx

Avaya

Cisco

Nortel

Routers & Integrated

Access Devices ADTRAN

Cisco

Consulting Network Engineering

Consultation

Hardware Maintenance

Support

Financing Equipment for Services

Equipment Rental

Voice Local

Long Distance

Toll-Free

Advanced Toll-Free

Business Voice Lines

Direct Trunk Overflow (DTO)

Managed Fraud Protection

VoIP Dynamic IP

Hosted IP Telephony

IP Trader Voice

Conferencing Audio Conferencing

Web Conferencing

Consulting Network Diversity Engineering

Toll-Free Routing Consultation

Colocation Services

Data Backup &

Recovery

Dedicated Hosted

Server

Shared Web Hosting

Licensed PINNACLE

Managed PINNACLE

Hosted PINNACLE

PINNACLE

Professional Services

Hosted Broadcast

Notification

Software for Services

Product Matrix (Communications Solutions)Product Matrix (Communications Solutions)

Click to PAETEC Solutions

Core ProductsCore Products Value-Added ServicesValue-Added Services

DataData EquipmentEquipment ApplicationsApplications Data CenterData CenterVoiceVoice

CommunicationsCommunications All Data All Equipment All Voice

SecuritySecurity MPLS VPN Hosted E-mail Security Hosted Web Security Hosted Firewall Managed CPE Firewall

Network Engineering Consultation

Managed Fraud Protection

Managed Managed ServicesServices

Managed Router Support

Managed CPE Firewall

Hosted Firewall

Colocation Services Data Backup

& Recovery Dedicated Hosted

Server Shared Web Hosting

Hosted IP Telephony Managed Fraud

Protection

FinancingFinancing Equipment for Services Equipment Rental

Business Business ContinuityContinuity

MPLS VPN Fixed Wireless Private Line

Network Engineering

Consultation Hardware

Maintenance Support

Colocation Services Data Backup

& Recovery Dedicated Hosted

Server

Dynamic IP Direct Trunk Overflow Network Diversity

Engineering Toll-Free Routing

Consultation Advanced Toll-Free

Hosted Broadcast Notification

BusinessBusinessIntelligenceIntelligence

Managed Fraud Protection

Hosted Broadcast Notification

Managed PINNACLE

All Data Center

Licensed PINNACLE Managed PINNACLE Hosted PINNACLE PINNACLE

Professional Services

Software for Services

All Applications

SolutionsSolutions

PAETEC SolutionsPAETEC Solutions

The PAETEC Difference

National network presence

Broad product portfolio

Personalized solutions

Trusted business partner

Unmatched customer service