A D V A N C E D C O M M U N I C A T I O N S S O L U T I O N S

C O R N E R S T O N E T E L E P H O N E C O M P A N Y , L L C

Advanced Communications Solutions

CornerStone, a privately held company headquartered

in New York’s Tech Valley, delivers communications

and network solutions to work environments.

With ownership of technology assets including

state-of-the-art carrier-class IP switches, multiple

data centers and cloud computing platforms, we

are uniquely positioned to deliver a full suite of

services to customers both locally and globally.

Our teams throughout New York State and

Massachusetts provide sales, technical and customer

support to businesses as no other communications

provider can. And, by leveraging our partner

relationships and core technologies, CornerStone

can serve businesses no matter where they are, with

cost-effective solutions that include:

• An integrated suite of nationally available voice,

hosted voice, data and software products

• Data center, cloud computing and hosted

applications

• Customer support and local service teams

CornerStone Telephone Company was founded by partners Dan Yamin

and Don Walsh with an initial investment of their own capital.

2002

Became cash flow positive in the 1st quarter.

2003

SolutionS for work environmentS

CorporateNetwork

RemoteOffice

Office

Home

Mobile

Our Vision

CornerStone Telephone Company will strive to

deliver comprehensive communications solutions

and innovative technologies aligned with our client’s

organizational objectives. We are determined to

enhance the customer experience through quality

products and cutting-edge, but accessible, resources.

Our Values

CornerStone’s leadership team and employees operate

according to a set of core beliefs and principles:

Integrity: We attempt to be open, honest and trust-

worthy in all of our dealings with customers, suppliers,

coworkers and our communities.

Customer Focus: We will fully satisfy our customers

with innovative technology and superior quality, value

and service.

Employees: We value our employees, encourage their

development and reward their performance.

Community: We will be responsible and valued citizens

in the communities where we live and work.

.

Reached a total of 25,000 access lines. Opened additional sales offices.

2005

Purchased Class 5 Softswitch from

MetaSwitch.

2006

Acquired 40% of Distributed Applications Technologies (DAT) and acquired

PBX vendor Butler Communications, as well as Telecon Communications, a Central New York CLEC.

2006

Mission

CornerStone’s mission is to serve our clients

by providing, as a proven telecommunications

partner, reliable business communications solutions

that include telephone, Internet, hosting, data

center, and cloud computing services. We offer our

clients the best software and networks available,

all supported by unrivaled customer service and

technical support teams.

We are driven to enhance the

customer experience through

quality products and accessible,

knowledgeable resources.

Strategy and Customer Focus

Our business strategy is to offer competitive pricing

on a broad portfolio of products, with our customers

enjoying a positive service experience and ease of

doing business. With a churn lower than the industry

average rate of customer line loss and more than

80% of our clients remaining as repeat buyers, we

know we’re delivering on our commitment.

Leadership

CornerStone’s culture is built around the imagination

and business leadership of our founding executives

Don Walsh and Dan Yamin. During their tenures in

executive positions for large, nationwide telecom-

munications companies, they became concerned

about the practices of corporations that shaped

both product availability and their customers’

service experience around internal efficiencies

rather than customer needs. At CornerStone,

Dan and Don recruited like-minded employees

and executives, from software, information tech-

nology and telecommunications industries, that

directs daily activity with this vision. The result:

highly adaptable teams, adept at understanding

requirements and designing solutions to meet a

wide variety of needs.

Financial Strength

By consistently delivering reliable, appropriately

scaled communication solutions at good value, we’ve

enjoyed significant growth in revenue and attracted

nationwide recognition, including our status as a

multi-year honoree of INC 5000’s fastest-growing

privately held companies in the U.S. With strong

financial standing, we’ve been able to acquire the

necessary infrastructure, and in some cases the neces-

sary companies, to meet the growing communications

needs of our target markets. Executing on plan has

enabled us to transition from a small start-up to a

midsized corporation with a track record of 10 years

of consistent, profitable growth.

Began network build-out, including Class 5 Softswitch

and IP core.

2007

Completed facilities build-out of four local access and

transport areas (LATAs) and 18 central offices.

2008

Service Offerings and Technologies

Being a full-service provider requires expertise

in a full range of technologies, and partnerships

with industry leaders. We’ve known for years

that meeting the communications needs of

business customers encompasses voice, data,

and the software that they rely on in their

many-faceted operations. CornerStone’s

network build and our engagement with

partner-suppliers are founded on our desire

to bring reliable and flexible solutions to our

clients. Whether we’re filling the requirements for

Cisco certification or Microsoft Gold Certification

or leveraging platforms from industry leaders in

software encryption or from partners who

specialize in niche markets, we find applications

that our customers can consistently apply to their

daily operations.

Acquired Richmond Telephone and Richmond Networx in Western Massachusetts, a CLEC with

$6 million in annual revenue and four central offices. Financing was provided by Berkshire Bank.

2009

CentralOffice

Colocations

Managed Cloud

Infrastructure and

Software

BroadbandAccess and

IP Infra-structure

CarrierGrade

Softswitch

DataCenters

Managed Storage &Dedicated and Virtual

Servers

PLATFORMS ANDTECHNOLOGIES

Voice and Data Competitive Local Exchange Carrier

CornerStone deployed its Class 5 central office IP

switching platform in 2008, allowing us to offer the

many benefits of on-net services. With network

equipment colocated in nearly 30 end offices,

CornerStone can deliver a range of affordable

access options. CornerStone has agreements with

national cable providers to bring high bandwidth

Internet access over cable to customers across the

United States. Managed services and Metro Ethernet,

strategic fiber builds, and other engineered solutions

appeal to mid-sized and enterprise clients.

Data Center Hosting and Virtual Servers

CornerStone’s data centers are strategically located

at four sites throughout our serving areas. Customers

can choose between colocating their equipment for

secure, controlled environments with multiple high-

bandwidth routes or using our dedicated or virtual

data center services. With our data center assets,

CornerStone is well positioned to win greater

market share and create increased client

loyalty as business customers are

increasingly challenged to reduce

capital expenditures and

improve their overall

financial performance.

Cloud Services and Content

CornerStone’s role as a market leader in cloud

services is evident in our early entry to this market:

we have been delivering cloud computing services

since 2003. Our customers were early adapters who

enjoyed the benefits of hosted desktop services

available with Microsoft’s suite of office applications,

as well as hosted accounting, customer relationship

management, and graphics applications. With

CornerStone, you’ll enjoy working with highly

qualified industry professionals, an operation that

is SAS 70 Type II certified and Data Centers and

Exchange Platform that is SSAE 16 SOC II certified.

CornerStone leveraged our position as a content

provider by introducing a range of hosted voice

services in 2008 that included hosted IP PBX and

unified messaging services.

Acquired PINS, a Manhattan-based CLEC and data center services company.

2011

Fully acquired Distributed Applications Technologies (DAT), a cloud computing company,

featuring the SkySphere® product line.

2011

Acquired ActiveHost, a data center services company.

2011

Fiber Builds

Internet Access

Hosted IP PBX

Virtual Office

Hosted Data

Cable Access Transport

VoIP

Cloud Services

Managed Services

SIP Trunking

ServiCeS

Acquired PINS, a Manhattan-based CLEC and data center services company.

Launched nationally available cable access transport (CAT) to deliver

high bandwidth and cloud voice.

2012

Fiber Builds

Internet Access

Hosted IP PBX

Virtual Office

Hosted Data

Cable Access Transport

VoIP

Cloud Services

Managed Services

SIP Trunking

Our track record of success

is built on an experienced

team of leaders from diverse

industries including software,

information technology and

telecommunications. Since our

founding in 2002, CornerStone

has managed growth with

great financial responsibility.

reCent ACColAdeS And CertifiCAtionS

n TheBusinessReview — Fastest Growing Companies

n TheBusinessReview — Best Places to Work

n Inc. 5000

n SAS 70 Type II Audit Certified

n SSAE 16 Type II Certified

n Parallels 2012 North American Regional Partner

of the Year

A History of Results, a Focus on the Future

CornerStone is a financially sound, expertly managed

growth company that provides outstanding services

to clients while delivering long-term gains to our

shareholders.

Since our founding in 2002, CornerStone has managed

growth with great financial responsibility. We have

reached approximately $40M in annual revenues,

outperforming many of our regional competitors, while

maintaining solid profit margins and strong earnings

before interest, taxes, and depreciation and amortiza-

tion. We’ve achieved growth organically, by our

direct and indirect sales channels, as well as through

acquisitions that allow us to add to our technology

platforms and to leverage synergies.

We are successfully entrenched as a leader in various

tier-2 and tier-3 markets throughout New York and

Massachusetts, and we have a full CLEC and data center

operation supporting a sizeable, loyal customer base in

the New York metropolitan area.

CornerStone’s team of software and voice services host-

ing professionals have helped thousands of customers

by advising them on how to best deploy these solutions.

Organizations of any size can utilize the elastic nature

of cloud voice and computing so they are able to meet

the rapidly changing demands of your customers and

continue to outpace your competitors. Our products

provide the flexibility you need to leverage the benefits

of new technology and comply with changing industry

regulations without the burden of making substantial

investments of your own organization’s time and money.

VOICE AnD DATA COMMunICATIOnSLocal and long distance

Internet accessCable access transport

Fiber

MAnAgED AnD EngInEERED SOLuTIOnSMPLS VPN

Metro Ethernet / WANSEngineered solutions

CLOuD SERVICES Hosted desktops, including Microsoft® Office Suite

Hosted applicationsWeb hostingE-commerce

E-mail encryptionHosted E-mail

E-mail Archiving

DATA CEnTER SERVICESColocation

Dedicated serversVirtual offerings

Web hostingData backup

SySTEM SALESPhone systems

CornerStone Telephone Company, LLCHEADqUARTERS

2 Third Street Troy, New York 12180

Phone: 866 992.9111 Fax: 518 273.2750

www.cstel.com