Allied Riser Communications Corp. –

DALLAS – Allied Riser Communications Corp., a fiber optic networks company, went public October 29, offering 15.8 million shares at $18 apiece. The stock priced at the top of its $16 to $18 filing range.

Goldman, Sachs & Co., Merrill Lynch & Co., Donaldson, Lufkin & Jenrette Securities Corp. and Thomas Weisel Partners L.L.C. underwrote the offering, which left 61.4 million shares outstanding. There were no selling shareholders.

EGI-ARC Investors, Telecom Partners, Crescendo Venture Management, Norwest Venture Capital and The Goldman Sachs Group Inc. were venture backers.

The company is a facilities-based provider of broadband data, video and voice communications services to small- and medium-size businesses in 16 major metropolitan areas in the United States. Allied typically delivers its services over fiber optic networks that it designs, constructs, owns and operates inside large and medium-size office buildings.

The $264 million in proceeds from the IPO will be used for the construction of in-building networks, and for general corporate purposes.

Allied Riser has never been profitable, losing $4.4 million in the six months ended June 30, 1998 and $19.9 million in the six months ended June 30, 1999.

Blair Whitaker, a partner at Norwest, joined the company’s board of directors in December 1998, along with R. David Spreng, a partner at Crescendo, and William Elsner and Stephen Schovee, partners at Telecom.

Allied Riser Communications – Selected Financial

(in thousands, except per share data)

December 19, 1996 (inception) Year Ended Six Months Ended June 30

to December 31, 1997 December 31, 1998 1998* 1999*

Total revenue 212 27 547

Net loss -1,497 -14,610 -4,382 -19,549