While at Light Reading’s Ethernet Expo in New York on November 3, 2010, Neutral Tandem announced that its network integration with Tinet, the Italian wholesale IP/MPLS backbone provider it acquired on October 1, 2010 is now complete.  Just one-month after the close of the acquisition, Neutral Tandem and Tinet’s global network have been combined to provide the largest global Ethernet Exchange network solution available in the world.  The combined network now offers over 100 global Ethernet Points of Presence (PoPs) across three continents.  This footprint far surpasses all other Ethernet Exchange providers in the market – in addition – through their ‘networked’ model, the company also provides the value-added benefit of one-stop-shop solutions for customers who seek end-to-end Ethernet connectivity across the globe. 

Neutral Tandem’s global Ethernet Exchange is indeed a truly open exchange opportunity.  Customers have the ability to buy and sell Ethernet connectivity from any of the Neutral Tandem global PoPs while also leveraging any/all other providers interconnected to Neutral Tandem’s Ethernet Exchange at any other given point on the network.  Customers do not have to buy long-haul connectivity from Neutral Tandem, they can continue to negotiate deals directly with providers, however, Neutral Tandem is the only provider currently offering customers the choice to leverage its extensive global network footprint – providing commercial and network benefits to Ethernet Exchange members on its platform. 

The announcement is exciting for the Ethernet Exchange community – the press release in its entirety is below:

Neutral Tandem and Tinet Integrate Networks;

Creates the Largest Global Ethernet Exchange 

Chicago, IL, November 3, 2010 — Neutral Tandem, Inc. (Nasdaq: TNDM), a leading provider of global interconnection services, announced today that it has connected its all-IP, MPLS network with Tinet’s global Ethernet network.  The integrated networks can carry voice, video and data traffic worldwide, while operating as the largest Ethernet Exchange in the world.

“This represents the first major milestone tied to our integration efforts with Tinetand significantly enhances the value proposition of our global Ethernet Exchange service offering,” stated Surendra Saboo, President and Chief Operating Officer of Neutral Tandem.  “By tying together our 14 sites in the US with Tinet’s 99 Ethernet-enabled PoPs, Neutral Tandem now offers the most accessible and robust Ethernet Exchange in the world with over 100 locations spread across three continents.”

With its unique networked approach, Neutral Tandem has shifted the market dynamics by interconnecting each one of its Exchange locations over its global IP MPLS network.  With one connection to its Ethernet Exchange, customers can buy and sell to every other member connected to any of its exchange Points of Presence (PoPs), whether in San Francisco, Singapore or any of its 100+ locations across the world.  This solution enables service providers to easily discover and buy Ethernet services in markets outside their footprint.  It also enables access providers to advertise their building lists to all service providers across Neutral Tandem’s network.

The networked approach is further complemented by leveraging Tinet’s extensive experience with delivering Ethernet and VPLS connectivity globally. “Tinet has been selling Ethernet connectivity in the wholesale market since its inception, and its backbone currently carries about 100 Gbps of point-to-point and point-to-multi-point Ethernet traffic on behalf of over 100 customers,” said Paolo Gambini, Head of Sales and Marketing at Tinet. “We believe that no other player in the Ethernet Exchange market can match our track record as far as Ethernet services delivery and support is concerned.”

Neutral Tandem’s Ethernet Exchange acts as a nexus for the Ethernet Community by enabling providers to interconnect with one another in a more efficient and simplified manner in over a 100 interexchange points across the world. To learn more about Neutral Tandem’s Ethernet Exchange, visit http://www.neutraltandem.com/prodServices/ethernet-exchange.htm.

Cautions Concerning Forward Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical fact, included in this press release regarding Neutral Tandem’s strategy, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The words “anticipates,” “believes,” “expects,” “estimates,” “projects,” “plans,” “intends,” “may,” “will,” “would,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Neutral Tandem may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements Neutral Tandem makes. Factors that might cause such differences include, but are not limited to: risks associated with our ability to successfully develop and market Ethernet Exchange or interconnection services, including but not limited to identifying, obtaining, operating and maintaining attractive network switch sites, equipment,  software and business support systems such as our Ethernet Exchange web portal, the risk that our business and the Tinet business will not be integrated successfully, cost estimation errors or overruns, interconnection delays, material delays or shortages, our inability to obtain and maintain necessary third party rights or permits on a timely basis, if at all, and other factors, including the impact of regulation, many of which are beyond our control and all of which could delay or negatively affect our ability to offer or market this new service; and other important factors included in Neutral Tandem’s reports filed with the Securities and Exchange Commission, particularly in the “Risk Factors” section of Neutral Tandem’s Annual Report on Form 10-K for the period ended December 31, 2009 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2010 and June 30, 2010, as such Risk Factors may be updated from time to time in subsequent reports. Neutral Tandem does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

About Neutral Tandem

Headquartered in Chicago, Neutral Tandem, Inc. provides voice, data and video interconnection services worldwide.  Neutral Tandem recently acquired Tinet, a global carrier exclusively committed to the IP Transit and Ethernet wholesale market.  The acquisition combines Neutral Tandem’s interconnection services for wireless, wireline, cable and broadband companies with Tinet’s global IP backbone.  Collectively, Neutral Tandem provides voice, IP Transit and Ethernet solutions to carriers, service providers, and content management firms worldwide.  With 14 Ethernet Exchanges, the company is now the largest Ethernet Exchange provider in the U.S., a top 10 global IPv4 backbone provider and the number one IPv6 network worldwide.   Please visit Neutral Tandem’s website at: www.neutraltandem.com and follow us on Twitter @NeutralTandem.

The Chicago and New York markets just got more Ethernet enabled.  Business Only Broadband (BOB), a broadband wireless Ethernet service provider serving the Chicago and New York markets has announced that it has joined the Neutral Tandem Ethernet Exchange Network.  By doing so, BOB’s metro wireless Ethernet network is made available to Neutral Tandem’s Ethernet Exchange market while BOB also gains access to other Exchange network operators for enhanced Ethernet network termination for its off-net business.  This is a great win for BOB and Neutral Tandem Ethernet Exchange customers as more network options create additional value for companies requiring end-to-end global Ethernet Connectivity.

Furthermore, Business Only Broadband (BOB) represents Neutral Tandem’s first broadband wireless Ethernet service provider to connect to its Exchange. BOB’s solutions offer extensive reach, speedy set-up and more diversity for customers with mission critical networking needs.  

Neutral Tandem’s Ethernet Exchange helps service providers interconnect using a more efficient and simplified method, which also allows for easy connectivity to multiple access providers in several markets with a single connection.

Read the full announcement below. For more information on Neutral Tandem, visit www.neutraltandem.com.

For more information on Business Only Broadband, visit www.bobbroadband.com.

Neutral Tandem, Inc. announces the addition of Business Only Broadband as an Ethernet Exchange Customer

Chicago, November 2, 2010 – Neutral Tandem, Inc. (Nasdaq: TNDM), a leading provider of global interconnection services, today announced the participation of Business Only Broadband (BOB) in its Ethernet Exchange.  Surendra Saboo, President and COO at Neutral Tandem stated, “We’re excited to have BOB join our exchange as the first fixed broadband wireless Ethernet service provider.  Since we’re also a customer of BOB , we have experienced the value of their solution first hand.”

BOB provides scalable Ethernet services throughout the Chicagoland and New York City Metro areas. “We are uniquely positioned to offer extended reach, quick installation, and network diversity for customers that have immediate and mission critical networking needs. The Ethernet Exchange allows us to better serve our customers while giving the other exchange participants the opportunity to take full advantage of our flexibility, network diversity and speed to market,” said Alan Rosenberg, CEO of BOB.

Neutral Tandem’s Ethernet Exchange provides Ethernet service providers with a more efficient and simplified method of interconnecting on a one-to-many basis. Utilizing Neutral Tandem’s Ethernet Exchange service solves the complex technical and business challenges traditionally tied to interconnecting to multiple service providers on a one-on-one basis. In addition, Ethernet service providers can virtually connect to multiple access providers in several markets through a single connection to the Neutral Tandem Ethernet Exchange.

Cautions Concerning Forward Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical fact, included in this press release regarding Neutral Tandem’s strategy, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The words “anticipates,” “believes,” “expects,” “estimates,” “projects,” “plans,” “intends,” “may,” “will,” “would,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Neutral Tandem may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements Neutral Tandem makes. Factors that might cause such differences include, but are not limited to: risks associated with our ability to successfully develop and market Ethernet Exchange or ethernet services, including but not limited to identifying, obtaining, operating and maintaining attractive network switch sites, equipment, software and business support systems, such as our Ethernet Exchange web portal, the risk that our business and the Tinet business will not be integrated successfully, cost estimation errors or overruns, interconnection delays, material delays or shortages, our inability to obtain and maintain necessary third party rights or permits on a timely basis, if at all, and other factors, including the impact of regulation, many of which are beyond our control and all of which could delay or negatively affect our ability to offer or market this new service; and other important factors included in Neutral Tandem’s reports filed with the Securities and Exchange Commission, particularly in the “Risk Factors” section of Neutral Tandem’s Annual Report on Form 10-K for the period ended December 31, 2009 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2010 and June 30, 2010, as such Risk Factors may be updated from time to time in subsequent reports. Neutral Tandem does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

About Neutral Tandem

Headquartered in Chicago, Neutral Tandem, Inc. provides voice, data and video interconnection services worldwide.  Neutral Tandem recently acquired Tinet, a global carrier exclusively committed to the IP Transit and Ethernet wholesale market.  The acquisition combines Neutral Tandem’s interconnection services for wireless, wireline, cable and broadband companies with Tinet’s global IP backbone.  Together with Tinet, Neutral Tandem provides voice, IP Transit and Ethernet solutions to carriers, service providers, and content management firms worldwide.  Operating 14 Ethernet Exchanges, the company is now the largest Ethernet Exchange provider in the U.S., a top 10 global IPv4 backbone provider and the number one IPv6 network worldwide.    Please visit Neutral Tandem’s website at: www.neutraltandem.com and follow us on Twitter @NeutralTandem.  Please also visit Tinet’s website at: www.tinet.net.

About Business Only Broadband,

Headquartered in Westmont, Illinois Business Only Broadband provides Carrier Class Metro Ethernet Fixed Wireless Network Solutions to the Hospitality, Enterprise, Healthcare, Education and Government Sectors in Chicago and NYC. BOB’s networks are 100% diverse from the embedded Telco infrastructure and are the largest fixed wireless broadband networks in its markets. Please visit BOB’s website at www.bobbroadband.com

###

Media Contact:

Jaymie Scotto &  Associates

Ilissa Miller

1-866-695-3629

pr@jaymiescotto.com

Twitter: @NeutralTandem

Investor Contact:

Neutral Tandem, Inc.

Jim Polson

1-866-268-4744

Join Movius and Neutral Tandem for a free webinar on November 3, 2010 at 2:00pm ET as they explain how carriers can bring more innovative solutions to market ahead of the competition using Software as a Service (SaaS).

 Leading this discussion will be Sara Huges, Senior Director of Product Marketing for Movius, along with John Butz, Senior Director of New Product Development for Neutral Tandem as the co-speaker.

Space is limited! To register, please go to: http://www.fiercewireless.com/offer/movius-nov2010

To read the full announcement, click here.

Neutral Tandem Inc., (NASDAQ:TNDM), announced on October 6, 2010 the launch of eight additional Ethernet Exchange Sites. The company has completed the deployment of the additional markets ahead of schedule, bringing all 14 of its previously announced Ethernet Exchange Points of Presence (PoPs) to market.

Neutral Tandem offers more Ethernet Exchange services in the U.S. than any other operator.  The initial six exchanges include: Atlanta, Boston, Chicago, Dallas, Los Angeles, and New York.  The eight additional markets include: Denver, Detroit, Houston, Miami, Philadelphia, San Francisco, Seattle and Washington D.C.

Read the full announcement below. For more information, please email: pr@jaymiescotto.com

Neutral Tandem Launches Eight Additional

Ethernet Exchange Sites Ahead of Schedule

Creates the Largest Ethernet Exchange Network in the U.S.

Chicago, IL, October 6, 2010 - Neutral Tandem, Inc. (NASDAQ: TNDM), a leading provider of interconnection services, announced today that it has launched eight additional Ethernet Exchange Points of Presence (PoPs), bringing all 14 of its previously announced Ethernet Exchanges to market. Following the launch of the company’s initial six Ethernet Exchanges in Atlanta, Boston, Chicago, Dallas, Los Angeles and New York, the company has now completed, ahead of schedule, the deployment of eight additional markets including Denver, Detroit, Houston, Miami, Philadelphia, San Francisco, Seattle and Washington D.C.

The launch of Neutral Tandem’s Ethernet Exchange in additional markets enables service providers to interconnect to Neutral Tandem in locations such as Boston, Denver, Houston, Miami, Philadelphia and Seattle. As a result, Neutral Tandem now offers its Ethernet Exchange service in more U.S. markets than any other Exchange operator. In addition, the recently completed Tinet acquisition bolsters the Ethernet Exchange addressable PoPs from 14 in the US to 99 worldwide, further complemented by Tinet’s ENNIs that provide connectivity to carriers in hard-to-reach countries.

“We are proud to be the first to offer Ethernet Exchange services in 14 locations,” said Surendra Saboo, President and COO of Neutral Tandem. “The scalability and cost efficiency of an Ethernet Exchange is accentuated with Neutral Tandem’s networked approach, where each exchange is interconnected with all of the other exchanges; thereby increasing the availability of service providers that can be connected to each other.”

“Ethernet Exchanges provide a common platform for Ethernet service providers to interconnect their networks and alleviate the formulation of lengthy ENNI agreements with each carrier they wish to connect to,” said Roopashree Honnachari, Sr. Industry Analyst, Business Communication Services, Frost and Sullivan. “Neutral Tandem’s 14 markets bring increased accessibility to its Ethernet Exchange service. That, combined with their networked approach creates a unique value proposition in the marketplace.”

Neutral Tandem’s initial 14 Ethernet Exchange markets are now available for service. To find out more about Neutral Tandem and its Ethernet Exchange, visit www.neutraltandem.com and follow the company on Twitter @NeutralTandem. Additionally, register to attend Light Reading’s Ethernet Expo Summit and join Neutral Tandem and Frost & Sullivan for ‘The Evolution of Ethernet Exchanges,’ webinar on October 26, 2010 at 11:30am ET.

Cautions Concerning Forward Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical fact, included in this press release regarding Neutral Tandem’s strategy, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The words “anticipates,” “believes,” “expects,” “estimates,” “projects,” “plans,” “intends,” “may,” “will,” “would,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Neutral Tandem may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements Neutral Tandem makes. Factors that might cause such differences include, but are not limited to: risks associated with our ability to successfully develop and market Ethernet interconnection services, including but not limited to integrating successfully our Ethernet services with Tinet’s, identifying, obtaining, operating and maintaining attractive network switch sites, equipment and software, cost estimation errors or overruns, interconnection delays, material delays or shortages, our inability to obtain necessary third party rights or permits on a timely basis, if at all, and other factors, including the impact of regulation, many of which are beyond our control and all of which could delay or negatively affect our ability to offer or market this new service; and other important factors included in Neutral Tandem’s reports filed with the Securities and Exchange Commission, particularly in the “Risk Factors” section of Neutral Tandem’s Annual Report on Form 10-K for the period ended December 31, 2009, Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2010, as such Risk Factors may be updated from time to time in subsequent reports. Neutral Tandem does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

About Neutral Tandem, Inc. Headquartered in Chicago, Neutral Tandem, Inc. provides voice, data and video interconnection services worldwide. Neutral Tandem recently acquired Tinet, a global carrier exclusively committed to the IP Transit and Ethernet wholesale market. The acquisition combines Neutral Tandem’s interconnection services for wireless, wireline, cable and broadband companies with Tinet’s global IP backbone. Collectively, Neutral Tandem provides voice, IP Transit and Ethernet solutions to carriers, service providers, and content management firms worldwide. With 14 Ethernet Exchanges, the company is now the largest Ethernet Exchange provider in the U.S., a top 10 global IPv4 backbone provider and the number one IPv6 network worldwide. Please visit Neutral Tandem’s website at: www.neutraltandem.com.

For Neutral Tandem media inquiries, please contact Ilissa Miller at Jaymie Scotto & Associates +1.866.695.3629 or pr@jaymiescotto.com.

Surendra Saboo, COO of Neutral Tandem shares his view of the Tinet acquisition – prior to the close of the transaction. To hear what he had to say and the vision of the Neutral Tandem global Ethernet Exchange network solution watch this Converge! Network Digest video.

Watch this informational video interview with Len Bosack, CEO of XKL LLC, an optical networking provider and Fritz Nelson, Executive Producer, TechWeb TV, as they discuss his plans for taking control of a faster future at INTEROP 2010.

In this interview XKL, LLC weighs in on the idea to lower costs for enterprises so they can manage their products and equipment to be more efficient, as enterprises want to take control and ownership of their networking.  He goes on to explain, this same thing is happening between branch offices and data centers and though the developing technology trends, he anticipates enterprises becoming not as dependent on their traditional service providers as they used to be.

For more information, please go to: www.xkl.com

Like clockwork, Neutral Tandem had said they would close the Tinet acquisition in early Q’4 2010 – well, today is as early as it gets – and it’s a done deal.   On Friday, October 1, 2010 Neutral Tandem announced that Tinet is officially part of the public company (NASDAQ: TNDM).  This acquisition makes Neutral Tandem the largest global Ethernet Exchange provider as well as a leading wholesale Voice, IP Transit, Ethernet solution provider around the world.

TINET is now a NEUTRAL TANDEM COMPANY!

The annnouncement in its entirety is below for your review:

Neutral Tandem Completes Acquisition of Tinet SpA

Chicago, IL, and Cagliari, Italy, October 1, 2010 – Neutral Tandem, Inc. (NASDAQ: TNDM), a leading provider of interconnection services, announced today it has completed its acquisition of Tinet, SpA, an Italian-based global carrier exclusively committed to the IP Transit and Ethernet wholesale market. The combination immediately expands Neutral Tandem’s IP-based network internationally, enabling global end‑to‑end delivery of wholesale Voice, IP Transit and Ethernet solutions. The acquired business will now be a wholly owned subsidiary of Neutral Tandem.  

Neutral Tandem and Tinet announced the signing of a definitive agreement on September 9, 2010.  To acquire Tinet, Neutral Tandem paid cash consideration of approximately 74.5 million euros (approximately $99.8 million), which reflects certain purchase price adjustments and includes the following assumption of cash and repayment of long-term debt.  As part of the 74.5 million euros purchase price, Neutral Tandem assumed approximately 5.2 million euros in cash (approximately $7 million) and caused Tinet to pay off approximately 18.2 million euros in long-term debt (approximately $24.4 million).[1]

“We believe that this deal will allow us to leverage our core competencies, expand our global footprint, accelerate our Ethernet initiatives and move beyond voice into data solutions,” said Rian Wren, President and CEO of Neutral Tandem. “We are pleased to have completed this acquisition and are excited to begin our efforts to capitalize on the new opportunities created by the transaction.”

Cautions Concerning Forward Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical fact, included in this press release regarding Neutral Tandem’s strategy, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The words “anticipates,” “believes,” “expects,” “estimates,” “projects,” “plans,” “intends,” “may,” “will,” “would,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Neutral Tandem may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements Neutral Tandem makes. Factors that might cause such differences include, but are not limited to: the possibility that the expected efficiencies and cost savings from the proposed acquisition will not be realized, or will not be realized within the expected time period; the risk that our business and the Tinet business will not be integrated successfully; disruption from the proposed acquisition making it more difficult to maintain business and operational relationships; risks associated with our ability to successfully develop and market international voice services and Ethernet interconnection services, including but not limited to identifying, obtaining, operating and maintaining attractive network switch sites, equipment and software, cost estimation errors or overruns, interconnection delays, material delays or shortages, our inability to obtain necessary third party rights or permits on a timely basis, if at all, and other factors, including the impact of regulation, many of which are beyond our control and all of which could delay or negatively affect our ability to offer or market this new service; and other important factors included in Neutral Tandem’s reports filed with the Securities and Exchange Commission, particularly in the “Risk Factors” section of Neutral Tandem’s Annual Report on Form 10-K for the period ended December 31, 2009, Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2010, as such Risk Factors may be updated from time to time in subsequent reports. Neutral Tandem does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

About Neutral Tandem, Inc.

Headquartered in Chicago, Neutral Tandem, Inc. is a leading provider of tandem interconnection services to wireless, wireline, cable and broadband telephony companies.  As of June 30, 2010, Neutral Tandem was capable of connecting approximately 500 million telephone numbers assigned to carriers in the United States. Neutral Tandem’s solutions include both voice and Ethernet interconnection services. Neutral Tandem’s solutions build redundancy, security and operational efficiencies into the nation’s telecommunications infrastructure. Neutral Tandem announced plans to launch 14 Ethernet Exchanges by year end 2010. Please visit Neutral Tandem’s website at: www.neutraltandem.com

 

 

About Tinet:

Tinet, formerly the carrier arm of Tiscali Group, is a global carrier exclusively committed to the IP and Ethernet wholesale market. With network presence and customers in EMEA, Americas and APAC, Tinet provides global IP Transit and Ethernet connectivity to Carriers, Service and Content Providers worldwide, The carrier guarantees customers proactive management of SLAs and protection from DoS attacks. Established in 2002, Tinet’s unique business model, based on focus and simplicity, assures the delivery of the highest standard of service. Tinet has grown to become one of the top 10 global IPv4 backbones and the number one IPv6 network worldwide.  For more information on Tinet, pleas

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[1] Based on an exchange rate of approximately  €1 = $1.34, which is the exchange rate Neutral Tandem received on various dates when it converted dollars to euros in connection with the acquisition.

Download this free White Paper to find out how the rapid growth of network-intensive applications such as video and smartphone devices are  driving the need for carriers to access reliable, global Ethernet network solutions.  It is this need for worldwide Ethernet reach that is driving carriers and service providers to interconnect with each other to extend beyond the boundaries of their own network footprints.  This is the key driver for the growth of Ethernet Exchange Networks and why this solution will provide cost savings and ubiquitous global connectivity.

Click here to download your free version of this White Paper today.

September 9, 2010 after the market closing, Neutral Tandem a leading provider of interconnection services announced its agreement to acquire Tinet, a global carrier exclusively committed to the IP Transit and Ethernet wholesale market.

This is an impressive move that will transform both companies, already extremely well positioned in their respective areas.  Here are some key highlights to note:

-       Neutral Tandem, already with 14 PoPs for its Ethernet Exchange will immediately grow to nearly 99 global PoPs – making them the #1 Ethernet Exchange provider in the world

-       Tinet, already a Tier 1 backbone provider now becomes an Ethernet Exchange leader, able to leverage its globally robust end-to-end Ethernet network solutions

-       Leveraging the Tinet global Ethernet network, its global PoPs, Neutral Tandem’s Ethernet Exchange solution will be able to connect nearly any exchange company to other exchange companies connected from nearly any other locations

-       The combined companies offer the most robust Ethernet interconnection network that will enable end-to-end network connectivity

Once the deal is finalized, the company will be headquartered in Chicago, IL; where Neutral Tandem is currently located.  The Tinet network and assets will become a wholly-owned subsidiary of Neutral Tandem – retaining its leading IP backbone position (#1 IPv6 provider and a leading IPv4 provider in the world); brand, excellent customer service and SLAs.  This is going to be exciting.  No doubt there will be more to come when the deal is ultimately closed – keep your eyes peeled!

For more information, please email: pr@jaymiescotto.com

 The complete release is posted in its entirety below:

 Neutral Tandem to Acquire Leading IP Transit and Ethernet Company, Tinet SpA

Creates Global Network Enabling Delivery of Wholesale Voice, IP and Ethernet Solutions

Chicago, Illinois  and Cagliari, Italy, September 09, 2010 – Neutral Tandem, Inc. (NASDAQ: TNDM), a leading provider of interconnection services, announced today it has entered into an agreement to acquire Tinet SpA, an Italian based global carrier exclusively committed to the IP Transit and Ethernet wholesale market.  To acquire Tinet, Neutral Tandem will pay cash consideration of approximately 74.5 million euros (approximately $94.9 million), which reflects certain purchase price adjustments, the assumption of approximately 5.2 million euros in cash (approximately $6.6 million) and the assumption of approximately 18.2 million euros in long-term debt (approximately $23.2 million), which will be paid off at closing[1].  The combination will immediately expand Neutral Tandem’s IP-based network internationally, enabling global end-to-end delivery of wholesale Voice, IP and Ethernet solutions. The acquisition, to be financed by cash from Neutral Tandem’s balance sheet, is subject to various standard closing conditions and is expected to close during the fourth quarter of 2010.  After closing, Tinet will be a wholly owned subsidiary of Neutral Tandem.  

“This acquisition redefines Neutral Tandem from a strictly voice interconnection company into a global IP-based network services company focused on delivering global connectivity for a variety of media, including voice, data and video,” said Rian Wren, President and CEO of Neutral Tandem.  “Furthermore, the integration of Tinet’s global IP backbone will help accelerate and expand Neutral Tandem’s and Tinet’s Ethernet services. This combination will take our Ethernet eXchange service global and will position us for delivering cost-effective wholesale Ethernet interconnectivity solutions end-to-end.”

Wren continued, “We were seeking the opportunity to leverage our core competencies, expand our global footprint, accelerate our Ethernet initiatives and move beyond voice into data solutions.  This acquisition meets the mark on all of these criteria and enables us to provide three key services: Voice, IP Transit and Ethernet.”

“Tinet is excited to continue to drive the growth of the global wholesale IP Transit and Ethernet markets under the Neutral Tandem umbrella,” said Paolo Susnik, CEO of Tinet. “We believe that the combination with Neutral Tandem will provide significant benefits to the global wholesale communications marketplace. The integration of our networks will provide customers greater access points to buy and sell Ethernet services and will add further value to our IP Transit proposition.”

The proposed acquisition is subject to customary closing conditions, and is expected to close during the fourth quarter of 2010. The transaction will also be subject to standard post-closing adjustments. Neutral Tandem expects the transaction to be immediately accretive to earnings per share in 2010, and anticipates providing updated financial guidance following the closing in conjunction with the Neutral Tandem third quarter 2010 earnings release. Oppenheimer & Co. Inc. served as financial advisers and Baker & McKenzie LLP served as legal advisers to Neutral Tandem on this transaction.  Compass Rondelli Advisers served as financial advisers and RDRB Associati and Dewey LeBouef LLP served as legal advisers to the sellers.

Conference Call & Web Cast

Neutral Tandem will hold a conference call to discuss the acquisition on September 10, 2010 at 9:00 a.m. (ET). A live web cast of the conference call, as well as a replay, will be available online on the company’s corporate web site at www.neutraltandem.com. Participants can also access the call by dialing 877-941-0843 (within the United States and Canada), or 480-629-9643 (international callers).  A replay of the call will be available approximately two hours after the call has ended and will be available until 11:59 p.m. (ET) on October 10^th, 2010. To access the replay, dial 800-406-7325 (within the United States and Canada), or 303-590-3030 (international callers) and enter the conference ID number: 4363554#.

Cautions Concerning Forward Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical fact, included in this press release regarding Neutral Tandem’s strategy, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The words “anticipates,” “believes,” “expects,” “estimates,” “projects,” “plans,” “intends,” “may,” “will,” “would,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Neutral Tandem may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements Neutral Tandem makes. Factors that might cause such differences include, but are not limited to: the possibility that the expected efficiencies and cost savings from the proposed acquisition will not be realized, or will not be realized within the expected time period; the ability to obtain any necessary or desirable  approvals of the acquisition on the proposed terms and schedule contemplated by the parties; the risk that our business and the Tinet business will not be integrated successfully; disruption from the proposed acquisition making it more difficult to maintain business and operational relationships; the risk that the proposed acquisition does not close, including, but not limited to, due to the failure to satisfy the closing conditions; currency fluctuations before the closing date causing an increase in the U.S. dollar value of the purchase price payable at closing; risks associated with our ability to successfully develop and market Ethernet interconnection services, including but not limited to identifying, obtaining, operating and maintaining attractive network switch sites, equipment and software, cost estimation errors or overruns, interconnection delays, material delays or shortages, our inability to obtain necessary third party rights or permits on a timely basis, if at all, and other factors, including the impact of regulation, many of which are beyond our control and all of which could delay or negatively affect our ability to offer or market this new service; and other important factors included in Neutral Tandem’s reports filed with the Securities and Exchange Commission, particularly in the “Risk Factors” section of Neutral Tandem’s Annual Report on Form 10-K for the period ended December 31, 2009, Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2010, as such Risk Factors may be updated from time to time in subsequent reports. Neutral Tandem does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

About Neutral Tandem, Inc.

Headquartered in Chicago, Neutral Tandem, Inc. is a leading provider of tandem interconnection services to wireless, wireline, cable and broadband telephony companies.  As of June 30, 2010, Neutral Tandem was capable of connecting approximately 500 million telephone numbers assigned to carriers in the United States. Neutral Tandem’s solutions include both voice and Ethernet interconnection services. Neutral Tandem’s solutions build redundancy, security and operational efficiencies into the nation’s telecommunications infrastructure. Neutral Tandem announced plans to launch 14 Ethernet eXchanges by year end 2010. Please visit Neutral Tandem’s website at: www.neutraltandem.com

 

About Tinet:

Tinet, formerly the carrier arm of Tiscali Group, is a global carrier exclusively committed to the IP and Ethernet wholesale market. With network presence and customers in EMEA, Americas and APAC, Tinet provides global IP Transit and Ethernet connectivity to Carriers, Service and Content Providers worldwide, The carrier guarantees customers proactive management of SLAs and protection from DoS attacks. Established in 2002, Tinet’s unique business model, based on focus and simplicity, assures the delivery of the highest standard of service. Tinet has grown to become one of the top 10 global IPv4 backbones and the number one IPv6 network worldwide.  For more information on Tinet, please visit www.tinet.net.

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[1] Conversion to dollars based on an exchange rate on September 8, 2010 of €1 = $1.2733.

On August 11, 2010 Allied Fiber, America’s ‘All Access’ Network,  participated in the Oppenheimer Annual Technology, Media & Telecommunications Conference which took place at the Four Seasons Hotel in Boston, MA.   During his 30 minute presentation, Hunter Newby, the CEO of Allied Fiber explained sort of the nuts and bolts of this new, carrier-neutral integrated dark fiber, colocation and tower network that they are building throughout the US.

What is most interesting about Allied Fiber is that it is a completely new business model, one that bridges together disparate pieces of the telecom puzzle into one holistic solution providing a complete layer 1 communications platform.   Beyond the integration of fiber and wireless network infrastructure, here are some highlights of the Allied Fiber solution:

• Allied Fiber is addressing the lack of accessible dark fiber in the market by making carrier neutral dark fiber available
• Key to Allied Fiber is that it’s substantially diverse from all existing long-haul networks
• Allied Fiber is employing the most advanced fiber optic cables in its ducts to meet the ever increasing bandwidth demands for wireless, Video over IP and other advanced technologies
• Allied Fiber is meeting the increased demand with 432 fiber strands in each duct (up to three ducts)
• Allied Fiber is designing, owning and operating its own regeneration huts/colocation facilities along the Network optimally placed for long/short-haul and wireless backhaul providers

So what does this network look like? 

It has both Long Haul Routes and Short Haul Routes.  The Short Haul routes are accessible approximately every 60 miles for the purpose of regeneration or power boosting the light carried in the Fiber.

The company’s Fiber to the Tower (FTTT) product is offered on even shorter distances, approximately every 1-2 miles, making lateral extensions from the main fiber rout to to towers more accessible.

And to make it all possible, Allied Fiber offers colocation and regeneration facilities along its route, approximately every 60 miles.  Offering lease racks, cabinets and maintenance for customers accessing this network.

The company certainly has a large undertaking, but with the level of experience in its leaders who have illustrated industry success there is no doubt that this network will succeed.    The company has pre-designed solutions illustrating how its network works with Data Center Builders, Tower Operators, Hardware providers and more.  Their partner page describes these solutions in great detail.

For more information about Allied Fiber visit their website, www.alliedfiber.com or email pr@jaymiescotto.com.  To request Hunter Newby to present on a panel at an industry conference or an investor conference, please contact ilissa@jaymiescotto.com.

To stay in the ‘know’ follow Allied Fiber on TWITTER:  @AlliedFiber and subscribe to their LinkedIn Group:  Allied Fiber