Pac-West Telecomm Inc. –

STOCKTON, Calif. – Pac-West Telecomm Inc., a competitive local exchange carrier, went public November 4, offering 12.6 million shares at $10 apiece. The company’s stock priced at the bottom of its $10 to $12 filing range.

Bear, Sterns & Co. Inc., Banc of America Securities L.L.C. and First Union Securities Inc. underwrote the initial public offering, which left 33.8 million shares outstanding.

Bay Alarm Co., SCP Private Equity Partners L.P., William Blair Capital Partners L.L.C., Safeguard Delaware Inc. and TL Ventures L.L.C. were venture backers. There were no selling shareholders.

The company is a competitive local exchange carrier (CLEC) that offers local and long distance telephony services, dial-up connections to Internet service providers and various communications services to small- and medium-sized businesses. In addition to California, its primary market, Pac-West plans to expand to nine more states in the Western United States.

The $105.7 million in proceeds expected from the IPO will be used for capital expenditures, working capital and for other general corporate purposes. In addition, the company may use a portion of the proceeds for investments, acquisitions or strategic alliances with complementary businesses.

Pac-West earned $4.5 million in 1997 and lost $667,000 in 1998, the only year when the company was not profitable.

David Chandler, a managing director at William Blair, joined the company’s board in September 1998, along with Mark DeNino, a managing director at TL Ventures, Samuel Plum, a managing general partner at SCP Private Equity Partners and Bruce Westphal, chairman of the board at Bay Alarm.

Pac-West Telecomm – Selected Financial

(in thousands, except per share data)

October 1, 1996 Year Ended Six Months Ended

(inception) December 31 June 30

to December 31, 1996 1997 1998 1998 1999

Total revenue 4,232 29,551 42,211 19,932 30,264

Net income (loss) 140 4,495 -667 3,289 804

Net income (loss) per share 1 32.11 -0.38 23.49 -0.09