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Chapel Services Acquires North Carolina Based ISP

Richmond (September 7, 1999) -- Chapel, Services Inc., a Kentucky based provider of Internet access, communications  services and  voice technology throughout the Southeast sector,  today announced it has completed a definitive purchase agreement to acquire SRS Internet, an Internet Service Provider (ISP) located in Fayetteville, North Carolina. 

Terms of the acquisition were not disclosed. SRSI  provides businesses, schools, and individuals with local dial-up connectivity, throughout the Raleigh, Fayetteville, Apex and , Wade, North Carolina markets.  SRSI was recently spotlighted by the Microsoft Corporation as an advanced ISP Solutions Provider in their monthly ISP E-Magazine.   

"The acquisition of SRSI expands Chapel's penetration into North Carolina, and increases our ability to expand services such as voice technology and local telephone service into that market." said Lee Murphy, Chairman/CEO of Chapel Services. "The addition of SRSI commercial customer base compliments our strategy to provide enhanced telecommunication services for business and residential clients throughout the Carolina market area." 

Chapel currently is awaiting approval from the Public Service Commission of North Carolina to allow it to serve as a Competitive Local Exchange Carrier. (CLEC).  CLEC's serve as alternatives to existing telephone companies, thus bringing competition for local phone service, long distance, and complex business circuits to markets that have been previously dominated by the larger providers. Chapel currently maintains approval to operate as a CLEC in Kentucky, Florida, Georgia, Louisiana, and Mississippi.

"Chapel will continue to aggressively execute its three pronged growth strategy to pursue strategic alliances to expand our offering and reach, to cross-sell additional services to new customers, and to evaluate acquisition candidates which would immediately expand our sales force and customer base in the Carolinas," added Murphy.

Chapel Services Inc., a 5-year-old privately held Kentucky company, specializes in E-Commerce and web hosting as well as all aspects of Internet connection and communications. 

For more information on Chapel, visit the new offices, located at 527-B Leighway Drive,
Richmond, KY 40475, 606 623-1500, or visit the web site at http://chapel1.com