February 6, 2002 -- Network Plus Corp., (NASDAQ:NPLS), announced that it, along with its operating subsidiary, has filed a voluntary petition with the U.S. Bankruptcy Court in Delaware for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The company is in current discussions with its existing secured bank lenders to obtain debtor-in-possession financing to enable the company to continue to operate while it seeks to conduct an auction to find a buyer for its business. The company is also seeking from its secured bank lenders the right to use cash collateral. If the company is unable to timely identify an acceptable Buyer or is unable to work out acceptable arrangements with its secured bank lenders and other creditors, the company will seek to keep operating for as long as possible while it explores all alternatives.

The company's secured bank lenders include Fleet National Bank, Goldman Sachs Credit Partners L.P., Netplus Funding, Inc. (an affiliate of DLJ) and IBM Credit Corporation.

Network Plus currently serves in excess of 300,000 local access lines, 300,000 long distance lines and thousands of data lines, and reaches approximately 75,000 customers and has significant penetration of its markets ranging as high as an estimated 7.4%. Robert T. Hale, Jr., President and Chief Executive Officer of Network Plus, said, "This was a very difficult decision. However, at this time, we believe that our actions are in the best interests of our creditors, employees and customers."

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