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Lightyear Network Solutions, Inc. (LYNS.OB) Finishes SouthEast Telephone Acquisition

Lightyear Network Solutions, lightyear.net – via its wholly-owned subsidiaries, is a leading US provider of broad spectrum telecommunications services from local PRI and digital T1 to wireless and VoIP. The Company announced a further expansion into this market today, completing acquisition of SouthEast Telephone Inc.’s business assets.

The $7.2M value of the transaction represents an acquisition multiple of 0.22 times SouthEast’s 2010 annualized run-rate revenue, and should generate over $30M in annual revenue.

Revenue over the six-month (ending June 30, 2010) was $16.4M (SouthEast) and $22.5M (OTCPK:LYNS), or a combined/annualized run-rate revenue of $77.8M ($76M net of pro forma adjustments relative to intercompany transactions).

This is a winner of a deal for LYNS, whose core strategy is rapid scaling of its constituent architecture via precisely such acquisitive activity focused on small- to mid-sized providers with strong organic growth dimensions; a strategy which enhances the huge network of authorized agents selling local service in 44 states and long-distance in 49 states.

CEO of LYNS, J. Sherman Henderson III, welcomed SouthEast into the Lightyear family and projected immediate accretion to EBITDA from the acquisition, which will also add significantly to revenues, clearly demonstrating LYNS’s pursuit of a shareholder return-focused strategy.

Pikeville, Kentucky-based SouthEast services some 31k lines and is an established provider of voice and data telecommunications services, including long-distance phone and DSL to primarily residential customers.

Carla Reichelderfer, 28-year veteran of the industry, who was formerly tasked with CEO/COO responsibilities at SouthEast since joining them in 2008, has been appointed President and General Manager of the subsidiary.

President of LYNS, Stephen M. Lochmueller, noted the exemplary reputation of Reichelderfer and conveyed his confidence that she will spearhead the SouthEast subsidiary with the utmost acumen.

Lochmueller also pledged to ensure continuity of service to the residents of Eastern Kentucky, who will now also have access to integrated product offering of telecom services and products. Form 8-K filed with the SEC today contains a pro forma of operations and consolidated balance sheets (as of June 30, 2010).

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