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SAN JOSE, CA, and WASHINGTON, D.C. — PRNEWSWIRE — Nov. 19, 2001 — VSGi (Visual Systems Group, Inc.), a company formed by Venturehouse Group and management, has purchased the video services division of Net2000 Communications, Inc. (NASDAQ: NTKK - news) for $3.5 million in cash.

VSGi, based in San Jose, California, is a leading provider of integrated videoconferencing, data, and network services to corporate and government customers, including dozens of Fortune 500 companies such as MGM, Morgan Stanley, 3M and Walt Disney.

The transaction was announced by Randy Harrell, former President of the Net2000 video services division, who will lead VSGi, and by Mark Ein, Founder and CEO ofVenturehouse Group, a Washington, D.C.-based investment firm that creates, invests in and acquires technology companies.

"Our management team seized an opportunity to take a promising division of Net2000, connect with a smart partner, and use this period of increasing demand for video conferencing services to position VSGi for even greater growth in the months to come,'' said Randy Harrell. "Our aggressive expansion plans include a broader sales presence, additional video and telecom services and new software applications to expand and improve the video conference experience for our customers. We appreciate the support that we received while part of Net2000, but now look forward to prospering as an independent company.''

Venturehouse Group, known primarily for its early stage investments in companies such as Matrics Technologies and XM Satellite Radio, provided the financing. Its principals have previously been involved in the early stages of many successful companies including Aether Systems and American Tower Corporation.

"At a time when business travel is more complicated, more costly, and more time consuming, there is an upsurge in demand for video conferencing services offered by companies like VSGi,'' said Mark Ein. "We made this investment, because VSGi is an established company, with real customers, real revenues, and really solid prospects for future growth in its core business and in new services areas. We are going to apply the same growth oriented strategies that we use with our start-up companies to leverage VSGi's platform and presence in this promising industry."

On November 15th, 2001, Net2000 announced that it 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 sale to VSGi is taking place outside the scope of the voluntary Chapter 11 petition.

About Venturehouse Group
Venturehouse Group is an investment firm that creates, acquires, and invests in technology and telecommunications companies. The firm's strategy is to work closely with its portfolio companies to provide operational, strategic, and financing support throughout their lifecycle. Located in Washington, D.C., the firm was founded in 1999 and is backed by several leaders in the region's technology and telecommunications industry. For more information about Venturehouse Group visit