Technology Investment Increases Carrier’s Efficiencies and Enables New Services

RYE BROOK, NY-- (BUSINESS WIRE)-- August 29, 2006-- Broadview Networks, a leading facilities-based communications provider in the Northeast and Mid-Atlantic, today announced its IP-centric network now extends to approximately 80 percent of its target customer base, including the New York City and Boston metro areas. The MPLS-enabled IP infrastructure, with VoIP softswitch technology, facilitates the delivery of new IP-based business-class services, including Multi-Service MPLS Virtual Private Networks with exceptional Quality of Service guarantees, flexible Dynamic Bandwidth Integrated T1s, and versatile Hosted IP-PBX/Key Systems.

“We have evolved the company’s network to the next level by strategically investing in new technology,” said Brian Crotty, Broadview Networks’ President and Chief Operating Officer. Broadview’s progressive network design features proven carrier-grade softswitches from MetaSwitch, a leading broadband softswitch provider, and Juniper Networks best-in-class M-series core and E-series IP aggregation routers. “We anticipate having these technologies and services deployed to virtually our entire footprint by year-end. These investments simultaneously reduce our capital and operating costs while enabling us to introduce cutting-edge services increasingly in demand by our customers. In addition, our recently announced acquisition of ATX Communications will allow us to extend these service offerings throughout the Mid-Atlantic areas served by ATX,” added Crotty.

Customers eager to embrace IP-enabled converged solutions will benefit from Broadview’s multi-service MPLS-based Virtual Private Networks for secure private data exchange, with significant savings compared to Frame Relay and traditional point-to-point private line networks. In addition, Broadview’s VoIP services, available on the company’s business-class private IP network, can offer significant cost and feature advantages over current communications offerings. Multi-location customers will benefit from these services for their Internet and other data applications.

“With our IP-centric network and softswitch technologies we can deliver true carrier class, secure and scalable converged business services over an efficient MPLS-based backbone while continuing to support existing services,” said Kenneth Shulman, Broadview Networks’ Chief Technology Officer and Chief Information Officer. “Following our rigorous quality and performance testing, we are excited to deliver prime time services to our small and medium-sized business customers who want the benefit of these value added voice and data services. Broadview will continue to leverage its proven track record for quality network services and expertise in software and process automation to deliver exciting new services. Among them, our Hosted VoIP solution, called Broadspeed^® Office Suite, provides low cost, low risk entry into VoIP enterprise services with lasting technology. The popularity of high speed Internet access and web interfaces enable businesses to truly benefit from web-based self-management of their own communications services.”

Broadview’s new and enhanced integrated voice, data and VoIP services will be available through the company’s direct, agent and wholesale channels.

About Broadview Networks (www.Broadviewnet.com)
Broadview Networks is a network-based electronically integrated communications provider (e-ICP) serving small and medium-sized businesses in the Northeast and Mid-Atlantic, United States. The Company offers integrated communications solutions, including local and long-distance voice services; data services that encompass VPN and MPLS-enabled offerings; hosted and premises-based VoIP systems; traditional telephone systems; and high-speed Internet services using DSL, T1 and T3 technologies. Customers receive a single, easy-to-understand bill and have a primary point of contact for real-time, personal customer care. Broadview is a control investment of MCG Capital Corporation (www.mcgcapital.com) (NASDAQ:MCGC). Broadview’s largest investors are MCG Capital, Baker Capital (www.bakercapital.com) and New Enterprise Associates (www.NEA.com).

About ATX Communications (www.atx.com)
Integrating traditional and “next gen” Internet and voice communications, managed security services, and other mission-critical technologies, ATX makes it easy for small and mid-size businesses to understand and implement technologies that address key business issues. Founded in 1985, ATX is actively committed to building long-term relationships, constantly evolving to meet businesses’ changing needs.

Forward-looking Statement: This press release contains forward-looking statements (i.e., statements that are not historical) describing future plans and objectives. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be incorrect. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this press release should not be regarded as a representation by us that our plans and objectives will be achieved. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this press release. We undertake no obligation to update such statements to reflect subsequent events.