July 1, 2004

SpeculatingStocks.com Stock Pick: DSL.net, Inc. (DSLN)

Stock Price: $0.31 (long-term strong buy)

DSL.net, Inc. provides broadband communications services to businesses by offering T-1, DS-3 and business-class DSL connections. The company provides additional services including virtual private networks, web hosting, DNS management, and firewall installation as well as VoIP offerings in select markets.

DSL.net is very well positioned to get their business customers signed up for their VoIP service. Internet Service Providers such as DSL.net are inherently well positioned in the VoIP industry due to their already established customer base.

The company has suffered, but has survived the shakeout in the DSL industry by focusing on the small to medium size enterprises who demand a quality, broadband Internet connection.

The company had $10.3 million in cash and total assets of $52.3 million at the end of Q1 with gross margin improvements of 20%. We are confident DSL.net will reach its goals of EBIDTA positive, bringing in additional financing, and pursuit of VoIP sales.

SpeculatingStocks.com Target Price: DSLN shares should exceed $0.50 by the end of the year. There is little downside risk at this level.