Investor Frequently Asked Questions 1. What is MetroNet's telecommunications strategy? MetroNet's goal is to be the first and leading national facilities-based provider of competitive local telecommunications services to business and government customers in Canada, as outlined in our Corporate Strategy. 2. What services does MetroNet offer? MetroNet is a single source provider of bundled telecommunications services, including local switched, dedicated access, private line, data transmission and long distance, Internet, network management and wireless services. 3. What experience does MetroNet's management team bring to the company? MetroNet believes that a critical factor in the successful implementation of its strategy is the quality of its management team and their extensive experience in the telecommunications industry. The senior management team has, on average, 13 years of industry experience with Canadian and/or U.S. telecommunications companies. Most of MetroNet's senior managers have held key executive and operating roles in start-up or well-established telecommunications companies; in Canada or the United States. 4. What are the details of MetroNet's Initial Public Offering? On December 4th, 1997, MetroNet Communications Corp. closed its Initial Public Offering of 7,500,000 Class B Non-voting shares at a price of $23.00 Cdn., providing gross proceeds of $172,500,000 Cdn. Of the 7,500,000 shares being issued, 1,875,017 Class B Non-voting shares are being sold by the Selling Shareholders (as defined in the prospectus) and MetroNet has not received any of the proceeds from this sale. The underwriting costs associated with the IPO are $1.551 per share, leaving a net share price of $21.449. The net proceeds that MetroNet has received from the IPO are $120,650,260 Cdn ($21.449 x 5,624,983 shares) The costs of this offering, which are exclusive of this amount, are estimated at $2,050,000 5. How does MetroNet intend to use the proceeds of its Initial Public Offering? The Company intends to use the net proceeds from the Offering to fund a portion of the development and build out of its networks in its eleven target markets and to fund the continued development of the Company’s planned services, operating losses, working capital and interest expenses. The Company’s capital plan for the period from August 31, 1997 through the end of 1999 calls for the build out of its networks with approximately 500 route miles of fiber connecting a total of approximately 1,000 buildings in its eleven target markets. This plan will require the Company to spend approximately $650 million through 1999 to fund capital expenditures, as well as the development of the Company’s planned services and to fund operating losses, working capital and certain interest expenses. 6. Who are MetroNet's customers? MetroNet is focused on providing complete telecommunications solutions, to medium and select large business and government customers in Canada. 7. What is MetroNet's relationship with Nortel? Metronet is implementing a uniform technology platform based on the Nortel DMS-500 digital telephone switch and ancillary transmission technologies, enabling Metronet to quickly and cost-effectively deploy features and functions in all of its networks and to expand switching capacity in a cost-effective manner. 8. What is MetroNet's relationship with NETCOM? Netcom and MetroNet have entered into an agreement to provide Internet services. Details can be found in the press release. 9. Where can I get a prospectus? A prospectus may be obtained from the SEDAR web site in Adobe PDF format, in both English and French. If you have any questions that are not addressed here, contact us at [email protected]