IPOs IN REGISTRATION – Z-Tel Technologies Inc. –

TAMPA, Fla. – Z-Tel Technologies Inc., a competitive local exchange carrier (CLEC), went public December 15, offering 6 million shares at $17 apiece. The company’s stock priced well above its $13 to $15 filing range.

Underwritten by Thomas Weisel Partners LLC, Credit Suisse First Boston, J.C. Bradford & Co. and Stephens Inc., the initial public offering left 30.9 million shares outstanding.

There were no selling shareholders. Venture backers included Hemisphere Trust, BA Capital Co. LP and Gramercy Communications Partners.

The company uses unbundled network elements from incumbent phone companies to provide its services, which include Internet access integrated with telephony services, allowing customers to manage voice mail via the Internet among its services.

The $93.5 million in proceeds expected from the IPO will be used for general corporate purposes, including capital expenditures and working capital.

Z-Tel has never been profitable, losing $23.6 million in the nine months ended September 30, 1999.

Laurence Grafstein, co-founder of Gramercy, joined the company’s board of directors in October 1999.

Z-Tel Technologies – Selected Financial

(in thousands, except per share data)

January 15, 1998 (inception) Nine Months Ended

to December 31, 1998 September 30, 1998* September 30, 1999

Total revenue 140 2,170

Net loss -13,122 -7,171 -23,647

Net loss per share -2.03 -1.91 -1.71

*Unaudited