Masergy Reaches EBITDA Positive Milestone in May 2006

Masergy Reaches EBITDA Positive Milestone in May 2006

Global Network Service Provider Grows Rapidly By Delivering Next-Generation Services

DALLAS (June 22, 2006) – Masergy, a global service provider specializing in simplifying wide-area networking for enterprises, announced today that it achieved EBITDA profitability in May 2006. EBITDA stands for earnings before interest, taxes, depreciation and amortization. This financial milestone follows consistent corporate performance that averaged 14 percent quarter-over-quarter revenue growth for the past four quarters, and historical revenue performance that has always exceeded 10 percent quarterly growth. The company will generate annual revenue of nearly $50 million in fiscal 2006, representing an 86 percent increase over fiscal 2005. Masergy’s rapid growth follows its demonstrated performance for delivering next-generation network services valued by enterprises.

“Few companies that were started in the new millennium have survived or returned any value to their investors,” said Jack Tankersley, founder of Meritage Private Equity Funds and a Masergy board member since inception. “Masergy not only survived, I expect the company to return an attractive multiple of capital for its current investors.”

“Masergy’s growth stems from our laser-like focus on both our service delivery and our customers,” said Barry D. Nalls, president and CEO of Masergy. “By leveraging advanced technology while ensuring operational excellence for customers, we’ve built a successful business that continues to lead the way for the network services industry.”

The company’s financial success reinforces its reputation for simplifying enterprise networking through product innovation. Masergy has provided several communications “firsts,” with a demonstrated ability to meet the needs of enterprise customers. “Enterprise organizations today are seeking more from their service providers,” says Robin Gareiss, EVP and senior founding partner at Nemertes Research. “Fully 76 percent of enterprises participating in a recent Nemertes benchmark say they’re open to working with alternative or next-generation service providers for present or future networking services.”

Masergy Industry Firsts and Technology Advancements
2006: Masergy introduces Network Analyst, a comprehensive, wide-area network (WAN) analysis tool for enterprise business applications, making Masergy the first and only global carrier to offer an MPLS WAN network management service that is embedded in the virtual private network (VPN). The company is recognized as the fastest growing business in Collin County, Texas.

2005: Masergy becomes fully funded after securing $45 million and extends its international network. The company achieves Network Magazine’s Innovation Award for Most Visionary Data Service.

2004: Masergy launches its Intelligent Transport service, becoming the first carrier to offer Ethernet VPNs on a global basis. The company achieves Light Reading’s Leading Lights Award for Best New Service for a Private Company, as well as TMC Lab’s Innovation Award for the Masergy Service Control Center (SCC).

2003: Masergy secures $31 million in funding and becomes the first service provider to offer a commercial Virtual Private LAN Service (VPLS), and the first carrier to offer VPLS globally. The Yankee Group recognizes Masergy as One of North America’s Top 22 Network Service Providers, and Masergy is selected for the Pulver100.

2002: Masergy is identified as having the strongest and most straight-forward SLA in the telecom industry. The company achieves 2nd Fastest Growing Technology Company in the Dallas/Ft. Worth Metroplex, and receives an Editor’s Choice Awards at SuperCom ’02.

2001: Masergy receives $57 million in funding as it becomes the first MPLS service provider to guarantee 100 percent packet delivery for voice and video applications on a global IP network. The company launches its Service Control Center portal, the first web- based network management tool that lets customers dynamically change their network bandwidth and add voice and video services.

About Masergy
Masergy ( is a privately held global service provider specializing in simplifying wide-area networks for enterprises. Serving customers in 40 countries on six continents, Masergy leverages Multi Protocol Label Switching (MPLS) across an Internet Protocol (IP)-based network to cost-effectively deliver multiple services over a single connection. Masergy’s customers include companies from the manufacturing, financial/banking, entertainment broadcasting, hospitality/hotels and health care industries. For more information, visit or call +1 866-MASERGY.