ITC^DeltaCom News Release

News Release

October 18, 2002
FOR IMMEDIATE RELEASE

CONTACT INFORMATION:

Investor Contacts
Douglas A. Shumate
Senior Vice President
Chief Financial Officer
706-385-8189 or
dshumate@itcdeltacom.com

Media Contact:
Moss Crosby
Vice President of Marketing
256-382-3851
mcrosby@itcdeltacom.com

ITC^DeltaCom Announces Court Confirmation of Reorganization Plan

Company Expects to Emerge Free Cash Flow Positive from Financial Restructuring Later this Month

WEST POINT, Ga. October 18, 2002 - ITC^DeltaCom, Inc., an integrated telecommunications and technology provider to businesses in the southern United States, announced that the United States Bankruptcy Court for the District of Delaware today confirmed the Company's proposed plan of reorganization. The Bankruptcy Court confirmation follows overwhelming acceptance of the plan by approximately 99.8% of the senior note holders, 100% of the convertible note holders, and over 98% of the shareholders voting on the plan, in terms of principal amount voted. ITC^DeltaCom anticipates that the plan will become effective, and that ITC^DeltaCom will emerge from the restructuring process, later this month.

The confirmed plan of reorganization eliminates $515 million in senior note and convertible subordinated note debt. The plan also provides for a $30 million preferred equity financing to further strengthen the Company's balance sheet.

"The pre-negotiated reorganization plan filed by our holding company and now confirmed by the court will allow our quick emergence as a free cash flow positive business," said Larry Williams, ITC^DeltaCom's chief executive officer. "We will continue to focus on our core retail business and provide our customers with the exceptional level of service they have come to expect, positioning us for long-term financial viability and growth."

Under the terms of the plan, the outstanding notes will be cancelled and the noteholders will receive common stock in the reorganized Company. The Company and the lenders under the Company's $160 million senior secured credit facility will enter into amendments to that facility, which are described in the plan.

ITC^DeltaCom, Inc.'s operating companies, ITC^DeltaCom Communications, Inc. and Interstate FiberNet, Inc., were not included in the court-supervised proceeding and have continued to operate in the ordinary course of business throughout the restructuring process. ITC^DeltaCom, Inc. filed for reorganization on June 25, 2002.

ABOUT ITC^DeltaCom
ITC^DeltaCom, headquartered in West Point, Georgia, provides, through its operating subsidiaries, integrated telecommunications and technology solutions to businesses in the southern United States and is a leading regional provider of broadband transport services to other communications companies. ITC^DeltaCom's business communications services include local, long distance, enhanced data, Internet access, managed IP, network monitoring and management, operator services, and the sale and maintenance of customer premise equipment. ITC^DeltaCom also offers colocation, web hosting, and managed and professional services. The Company operates 35 branch offices in nine states, and its 10-state fiber optic network of approximately 9,980 miles reaches approximately 175 points of presence. ITC^DeltaCom has interconnection agreements with BellSouth, Verizon, Southwestern Bell and Sprint for resale and access to unbundled network elements and is a certified competitive local exchange carrier (CLEC) in Arkansas, Texas, and all nine BellSouth states. For additional information about ITC^DeltaCom, please visit the Company's website at www.itcdeltacom.com.

Statements contained in this news release regarding ITC^DeltaCom's expected financial condition and operating results, revenue growth, cash flows, reorganization and other planned events and expectations are forward-looking statements that involve risks and uncertainties. Actual future results or events may differ materially from these statements. Readers are referred to the documents filed by ITC^DeltaCom with the Securities and Exchange Commission, including ITC^DeltaCom's annual report on Form 10-K filed on April 1, 2002, for a discussion of important risks that could cause actual results to differ from those contained or implied in the forward-looking statements. These risks, which are discussed in ITC^DeltaCom's filings under the heading "Risk Factors," include dependence on new product development, rapid technological and market change, dependence upon rights of way and other third party agreements, debt service and other cash requirements, liquidity constraints and risks related to future growth and rapid expansion. Other important risks factors that could cause actual events or results to differ from those contained or implied in the forward-looking statements include, without limitation, customer reductions in services, delays or difficulties in deployment and implementation of colocation arrangements and facilities, appeals of or failures by third parties to comply with rulings of governmental entities, inability to meet installation schedules, general economic and business conditions, failure to maintain underlying service/vendor arrangements, competition, adverse changes in the regulatory or legislative environment, and various other factors beyond ITC^DeltaCom's control. ITC^DeltaCom expressly disclaims any obligation to update any forward-looking statements whether to reflect events or circumstances occurring after the date hereof or otherwise.

# # #