Atria Networks Inc.

Atria Networks Inc.

October 25, 2006 13:17 ET

Atria Networks poised for stronger growth with new ownership

Birch Hill Equity Partners buys local telecom, ready to invest

Attention: Business/Financial Editor, City Editor, Media Editor, Tech/Telecomm Editor KITCHENER, ONTARIO, TELECOM PURCHASE AGREEMENT--(CCNMatthews - Oct. 25, 2006) - The shareholders of Atria Networks
Inc. today announced that they have agreed to sell their interest in the
Atria Networks business to Birch Hill Equity Partners. Atria's joint
owners - Cambridge and North Dumfries Energy Plus Inc., Guelph Hydro
Inc., Kitchener Power Inc., and Waterloo North Hydro Holding Company -
have agreed in principal to sell at a profit the telecommunications
company they started six years ago.

Since its inception in 2000, Atria Networks (formerly Fibretech
Telecommunications and Guelph Fibrewired) has satisfied a demand for
local high-speed data services previously unmet by the private sector.
Having accomplished the objectives of its original mandate, Atria's
continued success in a restricted market space would become increasingly
difficult.

"Regional telecommunications is now a very sophisticated and fast-paced
business," said Steve McCartney, president of Atria. "With competitive
pressures mounting and new telecommunications services in strong demand,
Atria's strategic growth dictates a need for capital investment and
access to a larger market."

Birch Hill Equity Partners will fill that critical role and help the
company achieve its full potential.

"We see a tremendous untapped potential for fibre-optic data services,"
said Birch Hill principal, Thecla Sweeney. "Our involvement as an
equity partner will allow Atria to grow and pursue opportunities in its
current markets as well as those previously beyond its corporate
mandate."

Birch Hill is committed to continuing investment in Atria's community
initiatives such as free Wi-Fi Internet in the libraries, services for
the Waterloo Region Children's Museum, and early childhood literacy
programs.

Birch Hill Equity Partners Inc. invests in leading Canadian
middle-market businesses. This is the latest investment made though its
$850 million fund, Birch Hill Equity Partners III, LP. The 23 member
team at Birch Hill has many years of experience working together as an
active partner with top management teams in building long-term value.

Atria Networks is a diverse telecommunications enterprise supported by a
1000 km network of fibre-optic cable, spanning a broad contiguous area
from Orangeville in the northeast to the townships southwest of
Kitchener. The company provides high-speed data solutions, Internet
connectivity, bundled Layer 3 services for business, and recently
designed and constructed fully operational Wi-Fi mesh networks in
several urban cores.
IN: TECHNOLOGY, TELECOMM

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