New York, New York – January 26, 2005 – BridgeCom Holdings, Inc., and Broadview Networks Holdings, Inc., jointly announced the two companies have received final regulatory approval and completed their merger. The combined enterprise serves tens of thousands of SME’s across a footprint of seven northeastern states with a highly integrated network, which includes six digital circuit and packet switches, and 175 colocations. “We’ve brought together two strong companies to form a powerful regional competitor to serve customers in the most dynamic communications markets in the world,” says Brian Crotty, President of the new enterprise. “This is an exciting opportunity that holds immense promise for customers, for the enterprise and for our shareholders.”

The company’s Board of Directors will consist of representatives from its major institutional investors, including MCG Capital Corporation, Baker Capital and NEA Capital. “Having now consolidated two of the fastest growing and largest carriers in the Northeast, we believe this company is strongly positioned to emerge as carrier of choice for small businesses and enterprises that seek value, performance and service from their telecommunications partner,” says Steve Tunney, Director of the company and President, MCG Capital Corporation (MCGC Nasdaq).

“The economies of scale for the combined company are excellent and result from having a large and concentrated customer base as well as clustered telecommunications network and facilities capable of providing high quality advanced solutions for our customers,” says David Ruberg, Director of the company and Managing Partner, Baker Capital.

“In the seven states where the company focuses its marketing efforts, there are in excess of 40 million total access lines. We intend to aggressively pursue these markets with technology, service and quality. This is the right time to bring together two of the leading service providers in the Northeast,” says Peter Barris, Director of the company and Managing General Partner, NEA Capital.

About BridgeCom (www.bridgecom.com)
Founded in 1997 and a pioneer in the competitive local telecommunications marketplace, BridgeCom International, Inc., is a full-service Integrated Communications Provider offering a complete array of leading-edge voice, data and Internet services to business customers in the Northeastern United States. BridgeCom provides superior service, added simplicity and bottom line savings to small and mid-sized businesses in New York, New Jersey and Massachusetts.

About Broadview Networks (www.broadviewnet.com)
Broadview Networks is a network-based electronically integrated communications provider (e-ICP) serving small and medium-sized businesses and communications-intensive residential customers in the northeastern and mid-Atlantic United States. The New York City-based company offers integrated communications solutions, including local, long-distance and international voice services; data services; and dial-up and high-speed Internet services using digital subscriber line (DSL) and other advanced technologies. Customers receive a single, easy-to-understand bill and have a single point of contact for real-time, personal customer care.

About MCG Capital Corporation (www.mcgcapital.com)
MCG Capital Corporation is a solutions-focused financial services company providing financing and advisory services to a variety of small- and medium-sized companies throughout the United States with a focus on growth oriented companies. Currently, its portfolio consists primarily of companies in the industry sectors of communications, information services, and media and technology, including software and technology-enabled business services. Its capital is generally used by its portfolio companies to finance acquisitions, recapitalizations, management buyouts, organic growth and working capital.

About Baker Capital (www.bakercapital.com)
Baker Capital, founded in 1995, is a New York based private equity firm with $1.5 billion under management. Baker Capital makes investments in communications related companies at all stages of development. The partners of Baker Capital have extensive private equity and operational experience allowing the firm to partner with its portfolio companies not only with capital, but also market and product strategy as well as commercial relationships.

About NEA Capital (www.nea.com)
New Enterprise Associates (NEA) is a leading venture capital firm focused on helping entrepreneurs create and build major new enterprises that use technology to improve the way we live, work and play. Since its founding in 1978, the firm has followed the same basic principles: support their entrepreneurs, provide an excellent return to their limited partners and practice their profession with high standards and respect. Practicing classic venture capital for over 25 years, NEA focuses on early stage investments, playing an active role in assisting management to build companies of lasting value. With $6 billion under management, NEA’s experienced management team has invested in over 500 companies, of which more than 145 have gone public and more than 185 have been acquired. NEA has offices in Menlo Park, California, Reston, Virginia and Baltimore, Maryland.

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