February 6, 2002 -- Inter-Tel, Incorporated (Nasdaq: INTL) announced that effective January 24, 2002 Inter-Tel Technologies, Inc., a wholly-owned subsidiary of Inter-Tel, Incorporated, completed its purchase of certain assets of one of its largest customer premise equipment dealers and a data provider business DataNet, operating under McLeodUSA Integrated Business Systems, Inc., an indirectly wholly-owned subsidiary of McLeodUSA Incorporated (Nasdaq: MCLD). Under the terms of the definitive agreement, the Inter-Tel Technologies, Inc. purchased certain assets and assumed certain liabilities of McLeodUSA Integrated Business Systems Inc.'s voice key and PBX systems in Minnesota, Iowa and Colorado and the DataNet business for an undisclosed purchase price.

This transaction expands Inter-Tel's installed base of voice key and PBX systems and direct office presence in Minnesota and Iowa. In addition, the DataNet operation located in Sioux Falls, South Dakota is a LAN, WAN and network sales and service provider. The DataNet business will enhance product offerings to Inter-Tel's larger customers through their National Account group, offering a complete solution as they continue to enhance their expertise in the IP telephony space through the convergence of voice and data.

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