CEI Networks Announces 'Direct InternetFlights' to Penn State University.

Business Editors/Hi-Tech Writers

BIRDSBORO, Pa. & STATE COLLEGE, Pa.--(BUSINESS WIRE)--July 19, 2000

CEI Networks, a division of Conestoga Enterprises, Inc. (NASDAQ: CENI), announced today the establishment of the fiber optic-based "Metropolitan Internet eXchange"

Penn State and CEI Networks have created the MIX in State College, PA in order to allow data communications between local points, to remain local to State College, rather than being routed from a computer on one network through some often-circuitous routes throughout the Internet, only to then deliver the data to another computer in the local area.

Daniel R. Ehrlich, Director of Data Engineering of CEI Networks, stated "We are very pleased to have established the MIX through our fiber interconnect to Penn State. The establishment of the MIX will provide faster service for Penn State's faculty, staff, and students, who reside off-campus." In addition, Mr. Ehrlich added, "CEI Network's ISP subscribers will benefit if they are trying to access Penn State's "on-campus" network because they will have a direct fiber connection. Today's announcement is part of our company's commitment to delivering high bandwidth solutions to our customers and to other network access providers."

Steve H. Updegrove, Senior Director, Office of Telecommunications, Penn State University, stated "Penn State is pleased that CEI Networks has embraced this concept and has agreed to both manage the MIX and work with Penn State to encourage other firms to connect to it. The MIX will provide a welcome increase to the level of network connectivity available to Penn State faculty, staff, and students in the State College area. Further, by freeing network resources which would otherwise be consumed by this group, the MIX will allow participating service providers to enhance Internet connectivity to their other subscribers."

To further develop the MIX, Penn State and CEI Networks are encouraging other service providers (ISPs, CLECs and LECs), who offer data services in the State College area, to also connect to the MIX. While each ISP must connect to the Internet to deliver traffic that is not "local", those who join the MIX will be able to provide direct connections to PSU.

In addition, ISP subscribers will also be able to take advantage of the 155 million bits-per-second signaling speed that is already in use between CEI Networks and Penn State. Member ISPs should see a reduction in required bandwidth to the commodity Internet as the traffic destined for another member's network would all be handled locally via the MIX. This should also provide a member ISP subscriber with lightning fast access within the State College area and with Penn State.

Conestoga Enterprises, Inc. is a Birdsboro, Pennsylvania based integrated communications provider company with subsidiaries providing local and long distance voice services, wireless PCS service, cable television, paging, Internet access and communications equipment solutions. The company provides services in southeastern and central Pennsylvania, serving in excess of 81,000 customers.

This news release may contain forward-looking statements. While the company believes they are expressed in good faith, there are no assurances that the actual outcome or results will not differ materially from any forward-looking statements contained within.