Lightyear Network Solutions Completes the Acquisition of SouthEast Telephone

Lightyear Network Solutions, Inc. (OTCBB: LYNS) (www.lightyear.net), a provider of telecommunication services to businesses and residential customers throughout North America, has completed the acquisition of the business assets of SouthEast Telephone Inc., (“SouthEast”). The transaction is valued at approximately $7.2 million, which reflects an acquisition multiple of 0.22X SouthEast’s annualized run-rate revenue for 2010.

Part of the Lightyear family

“We are very pleased that SouthEast Telephone is now a part of the Lightyear family,” said J. Sherman Henderson III, CEO of Lightyear Network Solutions. “We expect this acquisition to be immediately accretive to EBITDA and add significantly to our revenue. The transaction is consistent with our objective to increase shareholder value through targeted acquisitions that positively contribute to our earnings and the economies of scale of our products and services, as well as through organic growth driven by our highly motivated authorized sales agents.”

The transaction is part of Lightyear’s strategy to rapidly scale its core business through a combination of acquisitions of small- to mid-sized telecommunications providers and organic growth generated from its large number of authorized agents who sell local service in 44 states and long-distance service in 49 states.

SouthEast, which is based in Pikeville, Ky., services approximately 31,000 lines and is a provider of voice and data telecommunications products and services, including local and long-distance phone service and DSL. Its customer base consists primarily of residential customers.

Carla Reichelderfer, age 49, has been appointed as President and General Manager of Lightyear’s SouthEast subsidiary. Ms. Reichelderfer had been with SouthEast since 2008 having Chief Financial Officer and Chief Operating Officer responsibilities at different times during her tenure there. Ms. Reichelderfer has more than 23 years of telecommunications industry experience and joined SouthEast with key responsibilities for improving operational efficiencies that contributed to the company’s overall profitability and improving EBITDA.

The Lightyear family

“We are pleased that Carla Reichelderfer has agreed to join the Lightyear family and look forward to working closely with her as she leads the team at SouthEast Telephone,” said Stephen M. Lochmueller, President of Lightyear Network Solutions. “Lightyear and SouthEast together look forward to serving the residential and business customers of Eastern Kentucky who will benefit from our integrated product offering of telecom services and products.”

Through its wholly owned subsidiaries, Lightyear provides telecommunication services to large, medium and small businesses and to residential consumers throughout North America. Lightyear’s product offerings include local PRI and digital T1, enhanced Internet services, MPLS, Ethernet, local and long-distance service, and conferencing. Lightyear also offers wireless services to customers in the U.S. through wholesale contracts with multiple wireless providers. Lightyear provides Voice over Internet Protocol (VoIP) services through its own network launched in 2004. Lightyear has partnered with the other leaders in telecommunications including: Sprint, Verizon, AT&T, Level 3, PAETEC, CenturyLink, XO Communications, Intelliverse, BroadSoft, Cisco and ADTRAN to deliver a broad and complete communication solution to its customers. Lightyear Network Solutions is headquartered in Louisville, Ky. Additional information can be found at: www.lightyear.net.