VoIP Pioneer Adds Nationwide Internet Dial-Up Service to

$29.95 unlimited long-distance, Internet with accelerator bundle is one of the lowest-priced offers of its kind in the country

Syracuse, N.Y., May 17, 2004 - USA Datanet, an integrated communications company that is changing the way consumers and businesses buy and use voice, data, conferencing, and enhanced services, today announced that it will expand its Voice-over-IP (VoIP) based network to offer Internet dial-up services nationwide. The service comes available on its own for $9.95, with an accelerator powered by Propel™ for $14.90, or as part of its' V.I.P. (Voice Internet Plus) bundle with the accelerator and unlimited long distance phone service for $29.95 - one of the lowest-priced bundled service products of its kind in the country.

"The secret is out," said Victor Bakunoff, USA Datanet's chief marketing officer. "We've offered Internet dial-up services in the north and southeast markets for the past two years and its time to let the rest of the country in on what over 58,000 subscribers have been enjoying - Internet service with no set up fees, unlimited e-mail addresses, 56k access connection, WebMail, News Groups, no intrusive advertising, pop up and under blockers, no contractual commitments and free domestic technical support."

The expansion is being enabled through the use of wholesale dial services provided by Level 3 Communications, Inc. (Nasdaq:LVLT). The company is one of the largest providers of wholesale dial-up service to ISPs in North America and is the primary provider of Internet connectivity for millions of broadband subscribers through its cable and DSL partners.

"We're pleased that USA Datanet chose Level 3's soft switch-based managed modem platform to expand its Internet dial services in the U.S.," said Kevin Bostick, senior vice president of Managed Modem services for Level 3. "We look forward to working with USA Datanet to help them meet their growth targets."

USA Datanet recently launched its fully interactive digital service portal where the Internet dial-up access, dial-up accelerator and V.I.P. bundle can be purchased, downloaded, and paid for online. Using vibrant flash modules, USA Datanet expects that its service portal will emulate the best-in-class customer service support provided from its call center. The service works with Windows 98, ME, 2000 or XP, and MAC.

"The nationwide expansion of one of our fastest growing services provides customers with a cost effective alternative to expensive Internet high speed access services," said Bakunoff. "With the options included in our dial-up access and dial-up accelerator services at $9.95 and $4.95 per month respectively, and no contractual commitments, a residential or SOHO customer may cut their monthly bill in half. This is exactly why 450,000 VoIP long distance customers have joined USA Datanet and why we believe that Internet dial-up subscribers are joining us as well."

About USA Datanet:

USA Datanet is a leading VoIP technology company headquartered in Syracuse, New York. The company uses its' early-adopter experience to deliver high quality voice, data, conferencing and enhanced products conveniently and affordably. Founded in 1998, the company uses soft switch technology with a proprietary network design that now supports over 450,000 customers in the residential and business markets. For more information about the company, visit www.usadatanet.com .