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Saturday, October 1, 2016
Lumos Networks Sees Solid Enterprise Demand Trends in Recently Launched Hampton Roads/Norfolk Fiber Market

Announces Department of Energy’s Jefferson Lab as New Enterprise Customer in this Expansion Market
#37 Largest MSA in the U.S. Represents Nearly $100m in Total Enterprise Addressable Market

WAYNESBORO, Va.--(BUSINESS WIRE)-- Lumos Networks Corp. (“Lumos Networks” or the “Company”) (Nasdaq: LMOS), a leading fiber-based service provider in the Mid-Atlantic region, expects to continue to benefit from positive Enterprise demand trends in the Hampton Roads/Norfolk, Virginia market. The Company recently completed a 270 route mile dense fiber build in this market as part of its 822 route mile expansion in the State of Virginia.

The 822 route mile expansion was fully completed several months ahead of the initial plan, and, in conjunction with our recently expanded metro Richmond market, was underpinned by a 257 unique Fiber to the Cell (“FTTC”) site 13 year contract with a national U.S. wireless operator. The Company expects that the Hampton Roads/Norfolk market will be a key contributor towards its target of doubling its annual Enterprise revenue to approximately $100 million over the next five years.

“We are excited to name the Department of Energy’s Jefferson Lab as a new Enterprise customer in our Hampton Roads/Norfolk market and we look forward to growing with them over time as their bandwidth connectivity demands increase,” said Timothy G. Biltz, CEO of Lumos Networks.

“The Department of Energy's Jefferson Lab is a research facility accessed by more than 1,500 scientists worldwide to conduct basic research of the atom's nucleus," said Bryan Hess, Network Manager at Jefferson Lab in Newport News, Va. "We needed additional high-speed internet connectivity to ensure our facility is accessible even during planned or unplanned outages of our primary link. Lumos Networks provided a diverse physical path for that service."

Mr. Biltz continued, “In the first half of 2016, the Norfolk/Hampton Roads market contributed 20% of the Company’s direct enterprise new sales and we expect to gain further market share as we head into 2017. This advanced fiber network now has full redundancy and has an average fiber density of approximately 165 fiber strands.”

Mr. Biltz added, “We see strong end market demand trends from both of our Enterprise channels: Enterprise direct and Carrier End User, which is our wholesale partnership program. Our sales force has benefited from activity across many of our key industry verticals, including data centers, healthcare, government, education, media and financials. We are also excited about the potential demand activity generated from multiple undersea cables that are expected to land in Virginia Beach, within ½ mile of our network, over the next 18 months.”

William D. Sessoms, Jr., Mayor of Virginia Beach, Virginia, said, “Access to high speed communications infrastructure is critical as we diversify our economy. This investment by Lumos strengthens our region's ability to connect users with the world in ways that could just be imagined 5 years ago, which makes us an even more attractive location for entrepreneurs and other innovative businesses.”

“EdgeConneX serves many of the world’s most demanding technology companies and a key component to our success is the quality of the network infrastructure connecting our Edge Data Centers®. The completion of this build by Lumos Networks offers EdgeConneX customers access to a resilient and diverse fiber network that can keep pace with their insatiable demand for more bandwidth,” comments Clint Heiden, chief commercial officer, EdgeConneX. “This network allows our customers to take advantage of new diversity and low latency routes, while adding the option for connectivity to cable landing stations in the future.”

In June of 2016, Lumos Networks, in conjunction with a leading third party research firm, completed a two-month refresh analysis that demonstrated the rapid growth of the annual addressable market within one mile of the Company’s network since the completion of our inaugural study in November of 2014. This previously disclosed refreshed analysis demonstrates an addressable market of nearly $100 million within one mile of the Company’s network in its Norfolk/Hampton Roads market, up about 50% since the Company’s initial study. Overall, the Company’s network expansion into both Hampton Roads/Norfolk and Richmond increases the company’s total addressable market by about $221 million, or a 67% increase versus its core markets.

Lumos Norfolk Sales Office, opening October 31, 2016:
Armada Hoffler Tower
222 Central Park Avenue, Suite 1810
Virginia Beach, VA 23462

Please contact John Dellinger, Sales Manager for the Hampton Roads region, at 757-510-6500 and DELLINGERJ@LUMOSNET.COM.

About Lumos Networks

Lumos Networks is a leading fiber-based service provider in the Mid-Atlantic region serving Carrier, Enterprise and Data Center customers, offering end-to-end connectivity in 26 markets in Virginia, West Virginia, North Carolina, Pennsylvania, Maryland, Ohio and Kentucky. With a fiber network of 11,028 fiber route miles and 517,244 total fiber strand miles, Lumos Networks connects 1,310 unique Fiber to the Cell sites, 1,684 total FTTC connections, 2,230 on-net buildings and approximately 3,500 total on-net locations. The Company also connects 44 total data centers, including three data centers acquired from DC74 (now named Lumos Data Centers), two acquired from Clarity Communications and seven company owned co-location facilities. In 2016, Lumos Networks generated over $123 million in Data revenue over our fiber network. Detailed information about Lumos Networks is available at