Able Telcom fails to pay secured debt obligation.

Able Telcom Holding Corp. (NASDAQ Symbol: ABTE) (Price: $4.125) has failed to make the required August 31, 1998 payment under its $86.4 million July 2, 1998 Secured Promissory Note (“Note”) to WorldCom, Inc. (NASDAQ Symbol: WCOM). Such failure constitutes an Event of Default under the Note and its MFS Network Technologies (“NT”) Stock Pledge Agreement. Able has failed to obtain any financing for its NT acquisition other than a bottomless preferred. Able claims WorldCom has granted a 16-day extension but failed to disclose the terms of the reprieve. Able was also obligated to repay its $10 million 12% Senior Subordinated Notes, plus interest and a prepayment penalty, on August 31, 1998. Able failed to disclose the payment or its default of this obligation.

Able has failed to file a Form 8K disclosing NT’s historical losses. Able’s ability to meet its cash obligations, including payments to accounts payable, were severely and negatively impacted by NT’s working capital requirements and operating losses.

Able must file a Form 10Q for the third quarter ended July 31, 1998 on or before September 15, 1998. This filing will allow investors to independently review Able’s financial statement for compliance with its bank loan agreement. In light of Able’s serious operating and financial difficulties, we see no reason for any investor to buy Able’s debt or equity securities. WorldCom attempted to sell NT or its assets for over one year at less than 10% premium above book value before selling to Able, a company with no ability to pay for the purchase. NT’s value has declined significantly after its purchase by Able. Able has a $20 million bottomless convertible outstanding. As a result, we believe Able shares have little or no residual value and reiterate our Strong Sell recommendation.

Short selling involves a risk not associated with the purchase of stock including, but not only limited to, unlimited loss and stock borrowing risks. Additional information is available upon request.