Integra Overview Presentation Feb10

Local, long-distance, phone systems and Internet access

Local customer care representatives

Local management

Secure, reliable network

Primary shareholders include Goldman, Sachs & Co., Tennenbaum Capital Partners, funds managed by

Farallon Capital Management LLC, and Warburg Pincus.

Telecom Act of 1996 created opportunity to grow beyond existing service footprint

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2,200 route mile (160,000 fiber miles) metropolitan area network

Unique 4,700-mile, long haul network – one of largest in U.S.

194 Communities Served

Over 900 Lit Buildings

33 Voice Switches

11-State Service Territory

Over 130,000 Customers

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Competitive matrix showed void in service for the small and mid-sized business sector

750 or fewer employees (typically don’t have internal telecom dept.)

Service sensitive and value our differentiated strategy

Product range (eliminate multiple vendor confusion)

+ Local presence (local number, answered by real person)

+ On-net service (ability to add value and control product quality)

+ Regional networks (offensive & defensive advantages)

= Quality, user-friendly customer experience

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Local Operating Market Area (OMA) owns:

Local Customer Experience

Local network, network operations and management of all employees that “touch” the customer

Profit and loss management

All OMA personnel are under one roof in the markets – next to the customer

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Integra‟s Target Markets Employ an average of 85% of a State‟s Workforce

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Quantity

Local

Long Distance

Fax Lines

DSL

Calling Card

Call Management/Call Routing

Conference Calling

Dedicated Internet

Domain Services

Email

Equipment Maintenance Plans

IP Addressing

Interactive Voice Response

LAN/WAN Hardware

Local/National Dial-up Internet

Managed Firewalls

Network Configuration

Network/System Monitoring

Point to Point private lines

Premise Wiring

Presence Management Integration

Soft Phones

Simple Solutions Bundle

SMTP Mail Relay

Telephone Systems

Toll Free

Unified Messaging

Video Conferencing

Voice Messaging

VPNs

Web Hosting

Web Conferencing

Wireless Networking

VoIP Telephone Systems

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MAN Cities:

Portland (sample)

Seattle

Minneapolis

Salt Lake City

Sacramento

Boise

Phoenix

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Importance Rating of Seven Purchase Criteria In Choosing a Telecom Provider(10-Point scale, 10 being extremely important.)

The graph above depicts a statistical y valid rating by customers of Integra versus customers of its primary competitors on the importance of each purchase

criteria. The results are ranked – left to right – by importance rating from non-Integra customers. These results were based on a statistically valid sample of

the SME market in Integra’s geographic service area (based on zip codes that overlap Integra’s network) within the seven largest MSAs Integra serves. The

results reflect the mean rating for each company. 2009 Riley Research Associates.

Price is important, but four other service-related criteria rank higher.

Above is a graph that depicts the statistical rating by customers of each company with regard to service quality by purchase criteria, highlighting

Integra versus its primary competitors. The results are listed – left to right – by the importance rating from non-Integra customers. These results

were based on a statistically valid sample of the SME market in Integra’s geographic service area (based on zip codes that overlap Integra’s

network) within the seven largest MSAs Integra serves. The results reflect the mean rating for each company. 2009 Riley Research Associates.

Integra is the Only Telecom Provider to Exceed the Industry Average Every Category

Customer Satisfaction by Purchase Criteria(10-Point Scale, 10 being the highest)

Integra Rates #1 in Overall Customer Satisfaction

Overall Customer Satisfaction Among Major Telecom Providers

in Integra’s Seven Largest Markets(10-Point Scale, 10 being the highest)

The graph above depicts a statistical y valid rating by customers of each company with regard to overall service quality, highlighting Integra versus its primary

competitors. These results were based on a statistically valid sample of the SME market in Integra’s geographic service area (based on zip codes that overlap

Integra’s network) within the seven largest MSAs Integra serves. The results reflect the mean rating for each company. 2009 Riley Research Associates.

Note: Integra and all public companies are TTM as of 09 2009. (a) Defined as EBITDA less capex. Excluding transition capital.

Source: Company filings, Company websites, Wall Street estimates, and Integra management projections

TTM Q309 Revenue

TTM Q309 EBITDA TTM Q309 FCF (a)

($ in millions)

Margin 33.5% 32.2% 14.7% 11.0% 9.8% 17.0% 11.2% 7.3% (2.7%) (5.9%)

“In nearly 20 years of satisfaction assessment across a wide variety of

industries, Integra‟s scores are among the highest. We rarely see the

number of „10‟s‟ that we saw in the recent survey.”

~ Michael J. Riley

Research Director, Riley Research Associates

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