SC 13E3

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________

SCHEDULE 13E-3
RULE 13e-3 TRANSACTION STATEMENT UNDER SECTION 13(e)
OF THE SECURITIES EXCHANGE ACT OF 1934
(Amendment No.___)

LEXENT INC.

(Name of the Issuer)

LEXENT INC.
LX MERGER CORP.
HUGH J. O’KANE, JR.
KEVIN M. O’KANE
BRUCE LEVY
NOAH FRANZBLAU

(Name of Persons Filing Statement)

COMMON STOCK, $.001 PAR VALUE PER SHARE

(Title of Class of Securities)

52886Q 10 2

(CUSIP Number of Class of Securities)

Hugh J. O’Kane, Jr. Chairman Lexent Inc.	Noah Franzblau, Esq. Secretary and General Counsel Lexent Inc.
Three New York Plaza New York, New York 10004 (212) 981-0700	Three New York Plaza New York, New York 10004 (212) 981-0700

(Names, Addresses and Telephone Numbers of Persons
Authorized to Receive Notices and Communications on Behalf
of Persons Filing Statement)

With copies to:

Steven M. Skolnick, Esq.
Lowenstein Sandler PC
65 Livingston Avenue
Roseland, New Jersey 07068
(973) 597-2500 James B. Carlson, Esq.
Mayer, Brown, Rowe & Maw LLP
1675 Broadway
New York, New York 10019-5820
(212) 506-2500

This statement is filed in connection with (check the appropriate box):

a.	x	The filing of solicitation materials or an information statement subject to Regulation 14A (§§240.14a-1 through 240.14b-2), Regulation 14C (§§240.14c-1 through 240.14c-101) or Rule 13e-3(c) (§240.13e-3(c)) under the Securities Exchange Act of 1934 (“the Act”).
b.	o	The filing of a registration statement under the Securities Act of 1933.
c.	o	A tender offer.
d.	o	None of the above.

Check the following box if the soliciting materials or information statement referred to in checking box (a) are preliminary copies: x

Check the following box if the filing is a final amendment reporting the results of the transaction: o

Calculation of Filing Fee
Transaction Valuation*	Amount of Filing Fee
$38,896,335	$	3,147

* Set forth the amount on which the filing fee is calculated and state how it was determined.

Estimated for the purposes of calculating the filing fee only. Proposed maximum aggregate value of transaction: $38,896,335 (calculated on the basis of 25,498,070 shares of Lexent Inc. common stock outstanding, which represents the maximum number of shares that will be acquired in the transaction, multiplied by the $1.50 per share merger consideration, plus the difference between $1.50 and the strike price of options to acquire 696,148 shares of Lexent Inc. common stock. These shares include shares of Lexent Inc. common stock owned by Hugh J. O’Kane, Jr., Lexent’s Chairman, and Kevin M. O Kane, Lexent’s Chief Executive Officer and Vice Chairman, that will not be contributed by them to LX Merger Corp. prior to the completion of the transaction.)

x	Check the box if any part of the fee is offset as provided by §240.0-11(a)(2) and identify the filing with which the offsetting fee was previously paid. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
	Amount Previously Paid: $3,147
	Form or Registration No.: Schedule 14A
	Filing Party: Lexent Inc.
	Date Filed: July 31, 2003

INTRODUCTION

     This Rule 13e-3 Transaction Statement on Schedule 13E-3 (this “Statement”) is being filed with the U.S. Securities and Exchange Commission (the “SEC”) by LX Merger Corp., a Delaware corporation (“Purchaser”), Lexent Inc. (“Lexent”), a Delaware corporation and the issuer of the equity securities that are the subject of a Rule 13e-3 transaction, Hugh J. O’Kane, Jr., Lexent’s Chairman, Kevin M. O’Kane, Lexent’s Chief Executive Officer and Vice Chairman, Bruce Levy, Lexent’s President and Chief Operating Officer and Noah Franzblau, Lexent’s Vice President, Secretary and General Counsel (collectively, the “Filing Parties”), in connection with the Agreement and Plan of Merger, dated as of July 9, 2003, by and among Purchaser and Lexent (the “Agreement”). Pursuant to the Agreement, Purchaser will merge with and into Lexent (the “Merger”), with Lexent as the surviving corporation. As a result of the merger, Lexent will be a private company owned by Hugh J. O’Kane, Jr. Lexent’s Chairman, and Kevin O’Kane, Lexent’s Chief Executive Officer and Vice Chairman (together, the “Purchaser Stockholders”).

     If the Merger is completed, each outstanding share of common stock (“Common Stock”) of Lexent, par value $.001 per share, will be converted into the right to receive $1.50 in cash, without interest, except that treasury shares held by Lexent and shares of Common Stock held by Purchaser (including certain shares contributed to Purchaser by the Purchaser Stockholders) immediately prior to the effective time of the Merger will be canceled without any payment therefor. Holders of Common Stock who properly exercise appraisal rights in accordance with Delaware law will receive cash in the amount of the appraised value of their shares of Common Stock, which may be higher or lower than, or the same as, the $1.50 per share being paid as the merger consideration. Each holder of stock options to purchase Common Stock (whether or not presently exercisable) will receive in cash, without interest, for each share of common stock subject to such option, the excess, if any, of $1.50 per share over the exercise price per share of such option, less any applicable withholding taxes. To the extent that the exercise price of such stock option is greater than or equal to $1.50, such stock option will be terminated and canceled without any consideration being payable to the holder of such option.

     In February 2003, eight holders of Common Stock, who are employees, former employees and relatives of the Purchaser Stockholders, owning in the aggregate 231,838 shares of Common Stock and 589,232 options to purchase Common Stock, entered into letter agreements with the Purchaser Stockholders, whereby the Purchaser Stockholders and others proposed to purchase directly or through one or more entities all of the outstanding shares of Common Stock, or to enter into a merger, consolidation or other “going private” business transaction involving Lexent. The letter agreements set forth the mutual understanding of the parties thereto regarding the proposed merger and support for the proposed merger and other actions relating to the shares of Common Stock and/or options to purchase shares of Common Stock held by each of the parties and each of the parties agreed to support and cooperate with, and has granted an irrevocable proxy to vote such shares and/or options to, the Purchaser Stockholders in connection with the Merger. The shares of Common Stock issuable upon the exercise of options covered by the letter agreements do not have voting rights unless and until such shares are actually issued and only if such share are issued on or prior to the record date for the special meeting which will be held in order to obtain stockholder approval for the adoption of the Agreement and approval of the Merger.

     Concurrently with the filing of this Statement, Lexent is filing a Preliminary Proxy Statement on Schedule 14A with respect to its solicitation of proxies in connection with the special stockholders meeting at which its stockholders will consider and vote on a proposal to adopt the Agreement and approve the Merger. Lexent’s proxy statement with respect to such solicitation is referred to herein as the “Proxy Statement.” The Proxy Statement is Exhibit (a) hereto and a copy of the Agreement is attached thereto as Appendix A. As of the date hereof, the Proxy Statement is in preliminary form and is subject to completion or amendment.

     In accordance with the rules of the SEC, the Filing Parties are providing the information set forth below. The information in the Proxy Statement, including all appendices thereto, is expressly incorporated herein by reference in response to all items of this Statement. This Statement also incorporates by reference information from Lexent’s periodic filings with the SEC.

TABLE OF CONTENTS

	Item 1. Summary Term Sheet
	Item 2. Subject Company Information
	Item 3. Identity and Background
	Item 4. Terms of the Transaction
	Item 5. Past Contacts, Transactions, Negotiations and Agreements
	Item 6. Purposes of the Transaction and Plans or Proposals
	Item 7. Purposes, Alternatives, Reasons and Effects
	Item 8. Fairness of the Transaction
	Item 9. Reports, Opinions, Appraisals and Negotiations
	Item 10. Sources and Amounts of Funds or Other Consideration
	Item 11. Interest in Securities of the Subject Company
	Item 12. The Solicitation or Recommendation
	Item 13. Financial Statements
	Item 14. Persons/Assets Retained, Employed, Compensated or Used.
	Item 15. Additional Information
	Item 16. Exhibits
SIGNATURES
Exhibit Index
FAIRNESS OPINION PRESENTATION

Item 1. Summary Term Sheet

The information contained in the section of the Proxy Statement entitled “SUMMARY TERM SHEET” is incorporated herein by this reference.

Item 2. Subject Company Information

(a)  The information contained in the section of the Proxy Statement entitled “INFORMATION ABOUT LEXENT – Business” is incorporated herein by this reference.

(b)  As of July 25, 2003, there were 42,268,061 shares of Lexent’s common stock, par value $0.001 per share, issued and outstanding. The information contained in the sections of the Proxy Statement entitled “INFORMATION ABOUT LEXENT – Price Range of Lexent Common Stock” and “INTRODUCTION — Voting Rights; Quorum; Vote Required For Approval” is incorporated herein by this reference.

(c)  The information contained in the section of the Proxy Statement entitled “INFORMATION ABOUT LEXENT – Price Range of Lexent Common Stock” is incorporated herein by this reference.

(d)  The information contained in the section of the Proxy Statement entitled “INFORMATION ABOUT LEXENT – Dividend Policy” is incorporated herein by this reference.

(e)  Not applicable.

(f)  The information contained in the section of the Proxy Statement entitled “INFORMATION ABOUT LEXENT – Purchases by Lexent and its Directors and Executive Officers and by Purchaser and its Directors and Executive Officers” is incorporated herein by this reference.

Item 3. Identity and Background

(a)  The information contained in the sections of the Proxy Statement entitled “INFORMATION ABOUT LEXENT – Business,” “INFORMATION ABOUT LEXENT—Executive Officers and Directors,” “INFORMATION ABOUT LEXENT — Security Ownership of Certain Beneficial Owners and Management,” and “INFORMATION CONCERNING THE PURCHASER STOCKHOLDERS AND PURCHASER” is incorporated herein by this reference.

(b)  The information contained in the sections of the Proxy Statement entitled “INFORMATION ABOUT LEXENT —Executive Officers and Directors,” “INFORMATION ABOUT LEXENT— Security Ownership of Certain Beneficial Owners and Management,” and “INFORMATION CONCERNING THE PURCHASER STOCKHOLDERS AND PURCHASER” is incorporated herein by this reference.

(c)  The information contained in the section of the Proxy Statement entitled “INFORMATION CONCERNING THE PURCHASER STOCKHOLDERS AND PURCHASER” is incorporated herein by this reference.

Item 4. Terms of the Transaction

(a)(1) Not applicable.

(a)(2)(i), (ii) The information contained in the sections of the Proxy Statement entitled “Summary Term Sheet,” “QUESTIONS AND ANSWERS ABOUT THE MERGER — The Proposed Merger,” “THE MERGER” and “THE MERGER AGREEMENT” is incorporated herein by this reference.

(a)(2)(iii) The information contained in the following sections of the Proxy Statement is incorporated herein by this reference: “QUESTIONS AND ANSWERS ABOUT THE MERGER — The Proposed Merger,” “SPECIAL FACTORS — Background of and Reasons for the Merger and Board Proceedings,” “SPECIAL FACTORS — Position of Lexent as to the Fairness of the Merger to Disinterested Stockholders,”

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“SPECIAL FACTORS — Approval of Directors and Recommendation of the Board of Directors,” “SPECIAL FACTORS — Opinion of Financial Advisor to the Board of Directors,” “SPECIAL FACTORS — Valuation of Lexent,” “SPECIAL FACTORS - Position of Lexent as to the Purposes, Reasons and Effects of the Merger,” “SPECIAL FACTORS — Position of Lexent’s Officers as to the Fairness of the Merger,” “SPECIAL FACTORS — Position of the Purchaser Stockholders and Purchaser as to the Fairness of the Merger to Disinterested Stockholders,” “SPECIAL FACTORS — Position of the Purchaser Stockholders and Purchaser as to the Purposes, Reasons and Effects of the Merger,” “SPECIAL FACTORS — The Purchaser Stockholders’ and Purchaser’s Plans for Lexent.”

(a)(2)(iv) The information contained in the sections of the Proxy Statement entitled “QUESTIONS AND ANSWERS ABOUT THE MERGER – The Special Meeting” and “INTRODUCTION – Voting Rights; Quorum; Vote Required for Approval” is incorporated herein by this reference.

(a)(2)(v) The information contained in the sections of the Proxy Statement entitled “QUESTIONS AND ANSWERS ABOUT THE MERGER – Fairness of the Merger and Conflicts of Interest” and “THE MERGER — Interests of Certain Persons in the Merger; Potential Conflicts of Interest” is incorporated herein by this reference.

(a)(2)(vi) The information contained in the section of the Proxy Statement entitled “THE MERGER — Accounting Treatment” is incorporated herein by this reference.

(a)(2)(vii) The information contained in the section of the Proxy Statement entitled “THE MERGER — Material U.S. Federal Income Tax Consequences” is incorporated herein by this reference.

(c)  The information contained in the following sections of the Proxy Statement is incorporated herein by this reference: “QUESTIONS AND ANSWERS ABOUT THE MERGER – Fairness of the Merger and Conflicts of Interest,” “SPECIAL FACTORS – The Purchaser Stockholders’ and Purchaser’s Plans for Lexent,” “SPECIAL FACTORS - - Position of the Purchaser Stockholders and Purchaser as to the Purposes, Reasons and Effects of the Merger,” “THE MERGER — Interests of Certain Persons in the Merger; Potential Conflicts of Interest,” and “THE MERGER — Material U.S. Federal Income Tax Consequences.”

(d)  The information contained in the following sections of the Proxy Statement is incorporated herein by this reference: “QUESTIONS AND ANSWERS ABOUT THE MERGER – The Proposed Merger,” “THE MERGER — Appraisal Rights,” “THE MERGER - Payment of Merger Consideration and Surrender of Stock Certificates,” and “Appendix D: Section 262 of the General Corporation Law of the State of Delaware.”

(e)  The information contained in the sections of the Proxy Statement entitled “THE MERGER — Appraisal Rights,” “INFORMATION ABOUT LEXENT – Business” and “INFORMATION CONCERNING THE PURCHASER STOCKHOLDERS AND PURCHASER” is incorporated herein by reference.

(f)  Not applicable.

Item 5. Past Contacts, Transactions, Negotiations and Agreements

(a)  The information contained in “Item 13. Certain Relationships and Related Transactions” of Lexent’s Annual Report on Form 10-K for the year ended December 31, 2002 filed with the SEC on or about March 27, 2003, is incorporated herein by this reference. The information contained in the following sections of the Proxy Statement is incorporated herein by this reference: “INFORMATION INCORPORATED BY REFERENCE,” and “Appendix F: Annual Report on Form 10-K for the Year Ended December 31, 2002.”

(b)  The information contained in the following sections of the Proxy Statement is incorporated herein by this reference: “QUESTIONS AND ANSWERS ABOUT THE MERGER – Fairness of the Merger and Conflicts of Interest,” “INTRODUCTION - Voting Rights; Quorum; Vote Required for Approval,” “INFORMATION ABOUT LEXENT - Executive Officers and Directors,” “SPECIAL FACTORS —

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Background of and Reasons for the Merger and Board Proceedings,” “THE MERGER – Interests of Certain Persons in the Merger; Potential Conflicts of Interest” and “THE MERGER – Source of Merger Consideration.”

(c)  The information contained in the following sections of the Proxy Statement is incorporated herein by reference: “SPECIAL FACTORS – Background of and Reasons for the Merger and Board Proceedings,” and “THE MERGER — Interests of Certain Persons in the Merger; Potential Conflicts of Interest.”

(e)  The information contained in the following sections of the Proxy Statement are incorporated herein by reference: “QUESTIONS AND ANSWERS ABOUT THE MERGER – The Special Meeting,” “QUESTIONS AND ANSWERS ABOUT THE MERGER – Fairness of the Merger and Conflicts of Interest,” “INTRODUCTION — Voting Rights; Quorum; Vote Required for Approval,” “SPECIAL FACTORS — Background of and Reasons for the Merger and Board Proceedings, “SPECIAL FACTORS – Approval of Directors and Recommendation of the Board of Directors,” “SPECIAL FACTORS – Position of the Purchaser Stockholders and Purchaser as to the Purposes, Reasons and Effects of the Merger,” “THE MERGER — Interests of Certain Persons in the Merger; Potential Conflicts of Interest,” “THE MERGER – Intent to Vote” and “Appendix A: Agreement and Plan of Merger.”

Item 6. Purposes of the Transaction and Plans or Proposals

(b)  The information contained in the following sections of the Proxy Statement is incorporated herein by this reference: “QUESTIONS AND ANSWERS ABOUT THE MERGER – The Proposed Merger,” “INTRODUCTION — Proposals to be Considered at the Special Meeting,” “SPECIAL FACTORS – Position of Lexent as to the Purposes, Reasons and Effects of the Merger” and “SPECIAL FACTORS – Position of the Purchaser Stockholders and Purchaser as to the Purposes, Reasons and Effects of the Merger” and “SPECIAL FACTORS — The Purchaser Stockholders’ and Purchaser’s Plans for Lexent.”

(c)  The information contained in the following sections of the Proxy Statement is incorporated herein by this reference: “QUESTIONS AND ANSWERS ABOUT THE MERGER – The Proposed Merger,” “SPECIAL FACTORS — Background of and Reasons for the Merger and Board Proceedings,” “SPECIAL FACTORS – The Purchaser Stockholders’ and Purchaser’s Plans for Lexent,” “SPECIAL FACTORS – Position of Lexent as to the Purposes, Reasons and Effects of the Merger,” “SPECIAL FACTORS – Position of Lexent as to the Fairness of the Merger to Disinterested Stockholders,” “SPECIAL FACTORS – Position of the Purchaser Stockholders and Purchaser as to the Purposes, Reasons and Effects of the Merger,” “SPECIAL FACTORS – Position of the Purchaser Stockholders and Purchaser as to the Fairness of the Merger to Disinterested Stockholders,” “THE MERGER,” “THE MERGER AGREEMENT” and “INFORMATION ABOUT LEXENT—Dividend Policy,” and “Appendix A: Agreement and Plan of Merger.”

Item 7. Purposes, Alternatives, Reasons and Effects

(a)  - (c) The information contained in the following sections of the Proxy Statement is incorporated herein by this reference: “QUESTIONS AND ANSWERS ABOUT THE MERGER – The Proposed Merger,” “QUESTIONS AND ANSWERS ABOUT THE MERGER – Fairness of the Merger and Conflicts of Interest,” “SPECIAL FACTORS — Background of and Reason for the Merger and Board Proceedings,” “SPECIAL FACTORS – The Purchaser Stockholders’ and Purchaser’s Plans for Lexent,” “SPECIAL FACTORS — Position of Lexent as to the Purposes, Reasons and Effects of the Merger,” “SPECIAL FACTORS – Position of the Purchaser Stockholders and Purchaser as to the Purposes, Reasons and Effects of the Merger,” “SPECIAL FACTORS — The Purchaser Stockholders’ and Purchaser’s Plans for Lexent,” “THE MERGER — Structure of the Merger” and “THE MERGER — Material U.S. Federal Income Tax Consequences.”

(d)  The information contained in the following sections of the Proxy Statement is incorporated herein by this reference: “SUMMARY TERM SHEET – Fairness of the Merger and Conflicts of Interest,” “SPECIAL FACTORS- Position of Lexent as to the Purposes, Reasons and Effects of the Merger,”

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“SPECIAL FACTORS — Position of the Purchaser Stockholders and Purchaser as to the Purposes, Reasons and Effects of the Merger,” “SPECIAL FACTORS — The Purchaser Stockholders’ and Purchaser’s Plans for Lexent,” “THE MERGER – Interests of Certain Persons in the Merger; Potential Conflicts of Interest” and “THE MERGER—Material U.S. Federal Income Tax Consequences.”

Item 8. Fairness of the Transaction

(a)  The information contained in the following sections of the Proxy Statement is incorporated herein by this reference: “QUESTIONS AND ANSWERS ABOUT THE MERGER — The Special Meeting,” “QUESTIONS AND ANSWERS ABOUT THE MERGER – Fairness of the Merger and Conflicts of Interest,” “SPECIAL FACTORS – Background of and Reason for the Merger and Board Proceedings,” “SPECIAL FACTORS — Position of Lexent as to the Fairness of the Merger to Disinterested Stockholders,” “SPECIAL FACTORS — Position of Lexent’s Officers as to the Fairness of the Merger,” “SPECIAL FACTORS — Opinion of Financial Advisor to the Board of Directors,” and “SPECIAL FACTORS — Position of the Purchaser Stockholders and Purchaser as to the Fairness of the Merger to Disinterested Stockholders.”

(b)  The information contained in the following sections of the Proxy Statement is incorporated herein by this reference: “QUESTIONS AND ANSWERS ABOUT THE MERGER — The Special Meeting,” “QUESTIONS AND ANSWERS ABOUT THE MERGER – Fairness of the Merger and Conflicts of Interest,” “SPECIAL FACTORS – Background of and Reason for the Merger and Board Proceedings,” “SPECIAL FACTORS — Position of Lexent as to the Fairness of the Merger to Disinterested Stockholders,” “SPECIAL FACTORS — Position of Lexent’s Officers as to the Fairness of the Merger,” “SPECIAL FACTORS — Opinion of Financial Advisor to the Board of Directors,” and “SPECIAL FACTORS — Position of the Purchaser Stockholders and Purchaser as to the Fairness of the Merger to Disinterested Stockholders.”

(c)  The information contained in the following sections of the Proxy Statement is incorporated herein by this reference: “QUESTIONS AND ANSWERS ABOUT THE MERGER — The Special Meeting,” “QUESTIONS AND ANSWERS ABOUT THE MERGER — The Proposed Merger,” “QUESTIONS AND ANSWERS ABOUT THE MERGER – Voting and Proxy Procedures,” “INTRODUCTION – Voting Rights; Quorum; Vote Required for Approval,” “SPECIAL FACTORS — Position of Lexent as to the Fairness of the Merger to Disinterested Stockholders,” “SPECIAL FACTORS — Position of the Purchaser Stockholders and Purchaser as to the Fairness of the Merger to Disinterested Stockholders,” and “Appendix C: Opinion of Rodman & Renshaw, Inc.”

(d)  The information contained in the following sections of the Proxy Statement is incorporated herein by this reference: “QUESTIONS AND ANSWERS ABOUT THE MERGER — The Special Meeting,” “QUESTIONS AND ANSWERS ABOUT THE MERGER — Fairness of the Merger and Conflicts of Interest,” “SPECIAL FACTORS – Background of and Reasons for the Merger and Board Proceedings,” “SPECIAL FACTORS — Position of Lexent as to the Fairness of the Merger to Disinterested Stockholders,” “SPECIAL FACTORS — Opinion of Financial Advisor to the Board of Directors,” “SPECIAL FACTORS — Position of the Purchaser Stockholders and Purchaser as to the Fairness of the Merger to Disinterested Stockholders,” and “INFORMATION CONCERNING THE PURCHASER STOCKHOLDERS AND PURCHASER.”

(e)  The information contained in the following sections of the Proxy Statement is incorporated herein by this reference: “QUESTIONS AND ANSWERS ABOUT THE MERGER — The Special Meeting,” “QUESTIONS AND ANSWERS ABOUT THE MERGER – Fairness of the Merger and Conflicts of Interest,” “SPECIAL FACTORS — Background of and Reason for the Merger and Board Proceedings” and “SPECIAL FACTORS – Approval of Directors and Recommendation of the Board.”

(f)  Not applicable.

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Item 9. Reports, Opinions, Appraisals and Negotiations

(a)  The information contained in the following sections of the Proxy Statement is incorporated herein by reference: “SUMMARY TERM SHEET — Fairness of the Merger and Conflicts of Interest,” “QUESTIONS AND ANSWERS ABOUT THE MERGER — Fairness of the Merger and Conflicts of Interest,” “SPECIAL FACTORS – Background of and Reasons for the Merger and Board Proceedings,” “SPECIAL FACTORS – Position of Lexent as to the Fairness of the Merger to Disinterested Stockholders,” “SPECIAL FACTORS — Opinion of Financial Advisor to the Board of Directors,” “SPECIAL FACTORS –– Position of the Purchaser Stockholders and Purchaser as to the Fairness of the Merger to Disinterested Stockholders,” and “Appendix C: Opinion of Rodman & Renshaw, Inc.”

(b)  The information contained in the following sections of the Proxy Statement is incorporated herein by this reference: “SUMMARY TERM SHEET — Fairness of the Merger and Conflicts of Interest,” “SPECIAL FACTORS – Background of and Reasons for the Merger and Board Proceedings,” “SPECIAL FACTORS – Position of Lexent as to the Fairness of the Merger to Disinterested Stockholders,” “SPECIAL FACTORS — Opinion of Financial Advisor to the Board of Directors,” “SPECIAL FACTORS – Position of the Purchaser Stockholders and Purchaser as to the Fairness of the Merger to Disinterested Stockholders” and “Appendix C: Opinion of Rodman & Renshaw, Inc.”

(c)  The information contained in the sections of the Proxy Statement entitled “SPECIAL FACTORS — Opinion of Financial Advisor to the Board of Directors” and “OTHER MATTERS—Available Information” is incorporated herein by this reference.

Item 10. Sources and Amounts of Funds or Other Consideration

(a)  and (c) The information contained in the following sections of the Proxy Statement are incorporated herein by this reference: “QUESTIONS AND ANSWERS ABOUT THE MERGER – The Proposed Merger,” “SPECIAL FACTORS – The Purchaser Stockholders’ and Purchaser’s Plans for Lexent,” “THE MERGER — Source of Merger Consideration” and “THE MERGER – Estimated Fees and Expenses of the Merger.”

(b)  None.

(d)  Not applicable.

Item 11. Interest in Securities of the Subject Company

(a)  The information contained in the following sections of the Proxy Statement is incorporated herein by this reference: “QUESTIONS AND ANSWERS ABOUT THE MERGER – Fairness of the Merger and Conflicts of Interest,” “THE MERGER — Interests of Certain Persons in the Merger; Potential Conflicts of Interest” and “INFORMATION ABOUT LEXENT — Security Ownership of Certain Beneficial Owners and Management.”

(b)  The information contained in the section of the Proxy Statement entitled “INFORMATION ABOUT LEXENT-Purchases by Lexent and its Directors and Executive Officers and by Purchaser and its Directors and Executive Officers” is incorporated herein by this reference.

Item 12. The Solicitation or Recommendation

(d) The information contained in the following sections of the Proxy Statement is incorporated herein by this reference: “QUESTIONS AND ANSWERS ABOUT THE MERGER – The Special Meeting,” “QUESTIONS AND ANSWERS ABOUT THE MERGER – Voting and Proxy Procedures,” “QUESTIONS AND ANSWERS ABOUT THE MERGER – Fairness of the Merger and Conflicts of Interest,” “INTRODUCTION — Voting Rights; Quorum; Vote Required for Approval,” “THE MERGER — Interests of Certain Persons in the Merger; Potential Conflicts of Interest,” and “THE MERGER – Intent to Vote.”

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(e)  The information contained in the following sections of the Proxy Statement is incorporated herein by this reference: “QUESTIONS AND ANSWERS ABOUT THE MERGER – Fairness of the Merger and Conflicts of Interest,” “SPECIAL FACTORS — Position of Lexent as to the Fairness of the Merger to Disinterested Stockholders,” “SPECIAL FACTORS — Position of the Purchaser Stockholders and Purchaser as to the Fairness of the Merger to Disinterested Stockholders,” “SPECIAL FACTORS — Opinion of Financial Advisor to the Board of Directors,” “SPECIAL FACTORS — Background of the Merger and Board Proceedings” and “THE MERGER — Interests of Certain Persons in the Merger; Potential Conflicts of Interest.”

Item 13. Financial Statements

(a)  The information contained in the following sections of the Proxy Statement is incorporated herein by this reference: “INFORMATION ABOUT LEXENT – Lexent Inc. Selected Financial Data,” “OTHER MATTERS — Available Information,” “INFORMATION INCORPORATED BY REFERENCE,” “Appendix F: Annual Report on Form 10-K for the Year Ended December 31, 2002,” and “Appendix G: Quarterly Report on Form 10-Q for the Three Months Ended March 31, 2003.”

(b)  Not applicable.

Item 14. Persons/Assets Retained, Employed, Compensated or Used.

(a)  and (b) The information contained in the following sections of the Proxy Statement is incorporated herein by reference: “SUMMARY TERM SHEET — Fairness of the Merger and Conflicts of Interest,” “QUESTIONS AND ANSWERS ABOUT THE MERGER – The Special Meeting,” “QUESTIONS AND ANSWERS ABOUT THE MERGER – The Proposed Merger,” “QUESTIONS AND ANSWERS ABOUT THE MERGER – Voting and Proxy Procedures,” “QUESTIONS AND ANSWERS ABOUT THE MERGER – Fairness of the Merger and Conflicts of Interest,” “INTRODUCTION — Proxy Solicitation,” “INTRODUCTION – Expenses of the Proxy Solicitation,” “SPECIAL FACTORS – Background of and Reasons for the Merger and Board Proceedings,” “SPECIAL FACTORS — Opinion of Financial Advisor to the Board,” “SPECIAL FACTORS — Fees Payable to Rodman & Renshaw,” “SPECIAL FACTORS — Position of Lexent as to the Fairness of the Merger to Disinterested Stockholders,” “SPECIAL FACTORS — Position of the Purchaser Stockholders and Purchaser as to the Fairness of the Merger to Disinterested Stockholders,” “THE MERGER — Interests of Certain Persons in the Merger; Potential Conflicts of Interest” and “THE MERGER - Estimated Fees and Expenses of the Merger.”

Item 15. Additional Information

(b)  The information contained in the Proxy Statement, including all appendices thereto, is incorporated herein by this reference.

Item 16. Exhibits

(a)  The Proxy Statement, as filed by Lexent, incorporated herein by this reference.

(b)  Not applicable.

(c)(1) Opinion of Rodman & Renshaw, Inc. (“Rodman & Renshaw”), dated July 9, 2003, incorporated herein by reference to Appendix C to the Proxy Statement.

(c)(2) *Fairness Opinion Presentation by Rodman & Renshaw to the Board of Directors of Lexent, dated July 9, 2003.

(d)(1) Agreement and Plan of Merger, dated as of July 9, 2003, between Lexent, Inc., and LX Merger Corp., incorporated herein by this reference to Appendix A to the Proxy Statement.

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(d)(2) Form of Letter Agreement between the Purchaser Stockholders and certain holders of Common Stock, incorporated herein by this reference to Exhibit 2 to Amendment No. 1 to Schedule 13D with respect to Common Stock, as filed by the Purchaser Stockholders with the SEC on or about July 16, 2003.

(f)  The information contained in the sections entitled “The Merger—Appraisal Rights” and “Appendix D: Section 262 of the General Corporation Law of the State of Delaware” in the Proxy Statement is incorporated herein by this reference.

(g)  Not applicable.

*     Filed herewith.

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SIGNATURES

     After due inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

	LEXENT INC.
	By:	/s/ Bruce Levy
		Name: Bruce Levy Title: President and Chief Operating Officer
	LX MERGER CORP.
	By:	/s/ Kevin M. O’Kane
		Name: Kevin M. O’Kane Title: Vice President
	/s/ Kevin M. O’Kane
	Kevin M. O’Kane
	/s/ Hugh J. O’Kane
	Hugh J. O’Kane, Jr.
	/s/ Bruce Levy
	Bruce Levy
	/s/ Noah Franzblau
	Noah Franzblau
Dated: July 30, 2003

Exhibit Index

Exhibit Number	Description
(a)	The Proxy Statement, as filed by Lexent, incorporated herein by this reference.
(b)	Not applicable.
(c)(1)	Opinion of Rodman & Renshaw, Inc. (“Rodman & Renshaw”), dated July 9, 2003, incorporated herein by reference to Appendix C to the Proxy Statement.
(c)(2)	*Fairness Opinion Presentation by Rodman & Renshaw to the Board of Directors of Lexent, dated July 9, 2003.
(d)(1)	Agreement and Plan of Merger, dated as of July 9, 2003, between Lexent, Inc., and LX Merger Corp., incorporated herein by this reference to Appendix A to the Proxy Statement.
(d)(2)	Form of Letter Agreement between the Purchaser Stockholders and certain holders of Common Stock, incorporated herein by this reference to Exhibit 2 to Amendment No. 1 to Schedule 13D with respect to Common Stock, as filed by the Purchaser Stockholders with the SEC on or about July 16, 2003.
(f)	The information contained in the sections entitled “The Merger—Appraisal Rights” and “Appendix D: Section 262 of the General Corporation Law of the State of Delaware” in the Proxy Statement is incorporated herein by this reference.
(g)	Not applicable.

*     Filed herewith.

EX-99.C.2 3 y88678exv99wcw2.htm FAIRNESS OPINION PRESENTATION

Lexent Inc.

Summary of Analysis

TRANSACTION VALUATION
Proposed transaction price		$	1.50
Shares outstanding (a)			42,690
Equity value		$	64,036
Plus net debt assumed		$	(79,748	)
Total consideration		$	(15,712	)
Premium to stock price			64.8	%
	Multiples
Total consideration/:
Revenue		NM
EBIT		NM
EBITDA		NM
Equity value/:
Book value			0.8x
Tangible net worth			0.8x

COMPARABLE COMPANY ANALYSIS
	Average		Implied
	Multiple		Price
Revenue		0.6x	$	3.42
EBIT		8.4x	NM
EBITDA		9.3x	NM
Book value		1.3x	$	2.59

COMPARABLE TRANSACTION ANALYSIS
	Average		Implied
	Multiple		Price
Revenue		0.6x	$	3.54
EBIT		11.5x	NM
EBITDA		5.8x	NM

	Average			Implied
	Premium			Price
1 day before		15.0	%	$	1.05
1 week before		25.1	%	$	1.14
4 weeks before		32.0	%	$	1.20

PREMIUMS PAID
				Implied					Implied
	Average			Price		Median			Price
Small Cap.
1 day before		42.6	%	$	1.30		32.1	%	$	1.20
1 week before		50.9	%	$	1.37		36.2	%	$	1.24
4 weeks before		56.9	%	$	1.43		45.5	%	$	1.32
Comparable Industry
1 day before		27.4	%	$	1.16		26.8	%	$	1.15
1 week before		32.9	%	$	1.21		33.6	%	$	1.22
4 weeks before		40.1	%	$	1.27		37.5	%	$	1.25
Majority Shareholder Acquiror
1 day before		35.2	%	$	1.23		26.6	%	$	1.15
1 week before		38.3	%	$	1.26		33.8	%	$	1.22
4 weeks before		44.9	%	$	1.32		41.2	%	$	1.28

DISCOUNTED CASH FLOW
Discount		Implied
Rate		Price
	15.0%	$	1.53
	25.0%	$	1.54

LIQUIDATION ANALYSIS
	Implied
	Price
Low	$	1.06
High	$	1.30

(a) Includes options as determined by the treasury method.

Rodman & Renshaw, Inc. 1 of 1

Lexent Inc.

Valuation

Prior to Announcement
(in thousands, except per share amounts)
Current price per share (as of 2/14/03)		$	0.91
Fully diluted shares outstanding:
	Shares outstanding		42,245
	Dilutive securities (a)		292
	Total		42,537
Equity value		$	38,709
Plus net debt assumed		$	(79,748	)
Total consideration		$	(41,039	)

Implied Transaction Valuation
Proposed transaction price		$	1.50
Fully diluted shares outstanding:
	Shares outstanding		42,245
	Dilutive securities (a)		446
	Total		42,690
Equity value		$	64,036
Plus net debt assumed		$	(79,748	)
Total consideration		$	(15,712	)

(a) Calculated using the treasury method.

Rodman & Renshaw, Inc. 1 of 1

Lexent Inc.
Comparable Company Analysis	Page 1

Operating Statistics
(data in thousands)

						Latest Twelve Months
		Fiscal		Financial		Net			Gross			Gross						EBIT						EBITDA			Net			Net
Company	Ticker	Year End		Data As Of		Revenues (a)			Profit			Margin			EBIT (b)			Margin			EBITDA (c)			Margin			Income			Margin
Lexent,Inc. — At Announcement	LXNT		12/31		03/31/03	$	112,874		$	(10,744	)		-9.5	%	$	(29,083	)(d)	NM			$	(25,082	)(d)	NM			$	(37,270	)(d)	NM
Lexent Inc. — Transaction	LXNT		12/31		03/31/03		112,874			(10,744	)		-9.5	%		(29,083	)(d)	NM				(25,082	)(d)	NM				(37,270	)(d)	NM
Dycom Industries, Inc.	DY		07/27		04/26/03		583,472			124,260			21.3	%		13,591	(e)		2.3	%		54,680	(e)		9.4	%		5,041	(e)		0.9	%
EMCOR Group, Inc.	EME		12/31		03/31/03		4,536,622	(f)		N/A		NM				116,747	(f)		2.6	%		143,543	(f)		3.2	%		56,684	(f)		1.2	%
Integrated Electrical Services, Inc.	IES		09/30		03/31/03		1,435,482			210,117			14.6	%		53,019			3.7	%		70,419			4.9	%		16,856			1.2	%
MasTec, Inc.	MTZ		12/31		03/31/03		814,842			167,365	(g)		20.5	%		19,671	(h)		2.4	%		54,140	(h)		6.6	%		(4,289	)(h)	NM
Quanta Services, Inc.	PWR		12/31		03/31/03		1,668,622			198,843			11.9	%		30,968	(i)		1.9	%		91,870	(i)		5.5	%		(2,869	)(j)	NM
Averages (k):													17.1	%					2.6	%					5.7	%					1.1	%

(a)	Revenues exclude interest and investment income.
(b)	Earnings before interest and taxes.
(c)	EBIT plus depreciation and amortization.
(d)	Excludes provision for doubtful accounts of $0.1 million, impairment of goodwill of $1.5 million, restructuring charges of $7.7 million and non-cash stock compensation of $3.0 million.
(e)	Excludes impairment write-off of $47.9 million and bad debt expense of $21.6 million.
(f)	Pro forma for acquisitions made during fiscal 2002.
(g)	Excludes non-recurring expenses of $85.9 million.
(h)	Excludes non-recurring expenses of $85.9 million and impairment of goodwill of $79.7 million.
(i)	Excludes extraordinary expenses totaling $212.6 million.
(j)	Excludes extraordinary expenses totaling $212.6 million and $8.5 million non-cash beneficial conversion charge.
(k)	Averages exclude Lexent Inc.

Rodman & Renshaw, Inc. 1 of 3

Lexent Inc.
Comparable Company Analysis	Page 2

Market and Book Value Statistics
(data in thousands, except per share amounts)

	Market Value Data										Market Capitalization Data							Book Value Statistics
	52-Week																	Common		Total Cap.
					Price @		Tot. Shares		Market		Total		Cash and		Enterprise			Equity at		at Book		Total Debt/
Company	High		Low		06/30/03		Out. (a)		Cap. (b)		Debt (c)		Equiv. (d)		Value (e)			Book Value		Value (f)		Total Cap.
Lexent,Inc. — At Announcement	$	3.48	$	0.75	$	0.91		42,245	$	38,443	$	1,791	$	71,043	$	(30,809	)	$	86,341	$	88,132		2.0	%
Lexent Inc. — Transaction		3.48		0.75		1.25		42,245		52,806		1,791		71,043		(16,446	)		86,341		88,132		2.0	%
Dycom Industries, Inc.		18.25		8.00		16.30		47,872		780,306		37		118,032		662,311			437,353		437,390		0.0	%
EMCOR Group, Inc.		59.00		43.40		49.36		14,987		739,761		168,085		93,103		814,743			495,850		663,935		25.3	%
Integrated Electrical Services, Inc.		7.60		3.10		7.25		41,438		300,424		248,607		26,130		522,901			258,795		507,402		49.0	%
MasTec, Inc.		7.02		1.31		5.76		48,037		276,696		200,748		15,119		462,325			272,810		473,558		42.4	%
Quanta Services, Inc.		8.70		1.75		7.10		116,183		824,898		391,268		61,433		1,154,733			684,136		1,075,404		36.4	%
Averages (g):																							30.6	%

(a)	Total shares outstanding as of latest SEC filing.
(b)	Market value equals current stock price times total shares outstanding.
(c)	Total debt equals long-term debt (including capitalized leases), current maturities and other short-term borrowings.
(d)	Includes cash, restricted cash and short-term, marketable securities.
(e)	Enterprise value equals market value plus total debt plus preferred stock and minority interest less cash.
(f)	Total debt plus total common equity at book value.
(g)	Averages exclude Lexent Inc.

Rodman & Renshaw, Inc. 2 of 3

Lexent Inc.
Comparable Company Analysis	Page 3

Market Multiples

Latest Twelve Months

Enterprise Value/LTM

Mkt. Cap./

Company

EPS

P/E

Revenues

EBIT

EBITDA

Book Value

Lexent,Inc. — At Announcement

$

(0.89

)

NM

NM

NM

NM

0.4x

Lexent Inc. — Transaction

(0.89

)

NM

NM

NM

NM

0.6x

Dycom Industries, Inc.

0.09

173.5x

(b)

1.1x

48.7x

(b)

12.1x

1.8x

EMCOR Group, Inc.

3.67

13.4x

0.2x

7.0x

5.7x

1.5x

Integrated Electrical Services, Inc.

0.42

17.3x

0.4x

9.9x

7.4x

1.2x

MasTec, Inc.

(0.09

)

NM

0.6x

23.5x

(b)

8.5x

1.0x

Quanta Services, Inc.

(0.02

)

NM

0.7x

37.3x

(b)

12.6x

1.2x

Averages (a):

15.4x

0.6x

8.4x

9.3x

1.3x

(a)	Averages exclude Lexent Inc.
(b)	Excluded from averages.

Rodman & Renshaw, Inc. 3 of 3

Lexent Inc.

Comparable M&A Transactions

(data in thousands)

					Purchase									Latest Twelve Month Financial Data of Target
Announced	Effective				Price		Equity		Net Debt			Total
Date	Date		Acquiror	Target	Per Share		Value		Assumed (a)			Consideration		Revenues			EBIT			EBITDA			Net Income			CFFO (b)
03/20/02		04/15/02	180 Connect Inc	Viasource Communications, Inc.		N/A		N/A		N/A		$	44,000	$	215,147		$	(20,430	)(c)	$	2,145	(c)	$	(28,689	)(c)	$	(6,115	)(c)
02/26/02		04/01/02	Investor group	International FiberCom, Inc		N/A		N/A		N/A			43,900		341,942			(5,161	)(d)		9,155	(d)		N/A			N/A
01/07/02		02/27/02	Dycom Industries, Inc	Arguss Communications, Inc.	$	5.76	$	83,779	$	70,127			153,906		216,175			2,555			22,348			(4,976	)		14,817
11/13/00		11/13/00	MagneTek, Inc	J-Tec, Inc.		N/A		24,000		(2,346	)		21,654		24,419			4,105			4,432			2,398			2,725
08/23/00		12/22/00	Bracknell Corporation	Able Telecom Holding Corp		2.52		41,342		84,589	(e)		125,932		458,118			(48,253	)		(36,158	)		(52,569	)(f)		(40,474	)(f)
06/29/00		09/18/00	InfrastruX Group, Inc	UTILX Corporation		6.13		45,809		5,517			51,326		108,731			2,365			6,498			1,605			5,738
05/26/00		05/26/00	Arguss Communications, Inc	U.S. Communications		N/A		20,386		3,293			23,679		14,722			3,175			4,003			1,764			2,592
05/01/00		05/01/00	Orius Corp	Hattech, Inc.		N/A		27,838		1,670			29,508		31,972			47			396			(208	)		141
03/09/00		03/09/00	Bracknell Corporation	Sunbelt Integrated Trade Services, Inc		N/A		N/A		N/A			127,000		265,800	(g)		N/A			27,800	(g)		N/A			N/A

Total Consideration to

Equity Value to

Premium to Target Stock Price

Acquiror

Target

Revenues

EBIT

EBITDA

Net Income

CFFO

1 Day

1 Week

4 Weeks

180 Connect Inc

Viasource Communications, Inc.

0.2x

N/A

20.5x

(h)

N/A

N/A

N/A

N/A

N/A

Investor group

International FiberCom, Inc

0.1x

N/A

4.8x

N/A

N/A

N/A

N/A

N/A

Dycom Industries, Inc

Arguss Communications, Inc.

0.7x

60.2x

(h)

6.9x

N/A

5.7x

30.3

%

41.9

%

53.2

%

MagneTek, Inc

J-Tec, Inc.

0.9x

5.3x

4.9x

10.0x

8.8x

N/A

N/A

N/A

Bracknell Corporation

Able Telecom Holding Corp

0.3x

N/A

N/A

N/A

N/A

-

25.2

%

1.0

%

-8.2

%

InfrastruX Group, Inc

UTILX Corporation

0.5x

21.7x

7.9x

28.5x

(h)

8.0x

39.8

%

32.3

%

50.9

%

Arguss Communications, Inc

U.S. Communications

1.6x

7.5x

5.9x

11.6x

7.9x

N/A

N/A

N/A

Orius Corp

Hattech, Inc.

0.9x

626.4x

(h)

74.6x

(h)

N/A

197.8x

(h)

N/A

N/A

N/A

Bracknell Corporation

Sunbelt Integrated Trade Services, Inc

0.5x

N/A

4.6x

N/A

N/A

N/A

N/A

N/A

Averages:

0.6x

11.5x

5.8x

10.8x

7.6x

15.0

%

25.1

%

32.0

%

(a)	Represents total debt less cash and cash equivalents.
(b)	CFFO is equal to net income plus depreciation and amortization.
(c)	Excludes impairment of intangible assets of $65.5 million and restructuring charge of $6.7 million.
(d)	Excludes non-recurring impairment charges of $87.8 million.
(e)	Includes value of Bracknell shares issued for litigation settlement, redeemable securities and Worldcom debt.
(f)	Excludes $25.0 million litigation settlement and $12.2 million impairment of investment.
(g)	As disclosed in F-4 filed by Bracknell Corporation.
(h)	Excluded from averages.

Rodman & Renshaw, Inc. 1 of 1

Lexent Inc.

Premiums Paid Analysis — Small Cap.

Transaction Date						Stock Price Before Announcement						Premium Paid
				Transaction
Announced	Effective	Acquiror	Target	Price		1 Day		Week		4 Weeks		1 Day			Week			4 Weeks
01/05/02	04/24/02	TIBCO Software Inc	Talarian Corp	$	5.30	$	3.14	$	2.99	$	2.50		68.8	%		77.3	%		112.0	%
01/07/02	02/27/02	Dycom Industries Inc	Arguss Communications Inc		5.76		4.42		4.06		3.76		30.3	%		41.9	%		53.2	%
01/07/02	03/20/02	Chiron Corp	Matrix Pharmaceutical Inc		2.21		2.59		1.57		1.25		-14.7	%		40.8	%		76.8	%
01/25/02	04/10/02	Lone Star Fund	Shoney’s Inc		0.36		0.39		0.31		0.28		-7.7	%		16.1	%		28.6	%
01/28/02	05/14/02	Investor Group	Jenny Craig Inc		5.30		3.15		2.85		3.08		68.3	%		86.0	%		72.1	%
01/29/02	05/01/02	InTown Suites Management	Suburban Lodges of America Inc		9.04		8.00		7.73		6.85		13.0	%		16.9	%		32.0	%
02/07/02	08/22/02	BioMarin Pharmaceutical Inc	Glyko Biomedical Ltd		4.14		6.35		5.50		7.00		-34.8	%		-24.7	%		-40.9	%
02/08/02	04/20/02	SHL Telemedicine Ltd	Raytel Medical Corp		10.25		8.00		8.00		7.65		28.1	%		28.1	%		34.0	%
02/10/02	10/28/02	JAKKS Pacific Inc	Toymax International Inc		4.50		3.05		1.90		1.87		47.5	%		136.8	%		140.6	%
02/13/02	05/15/02	Investor Group	Deltek Systems Inc		7.15		6.04		5.56		5.04		18.4	%		28.6	%		41.9	%
02/14/02	07/26/02	Investor Group	dick clark productions inc		14.50		10.93		9.70		9.70		32.7	%		49.5	%		49.5	%
02/20/02	03/22/02	SCC Contracting Inc	Sevenson Environmental Svcs		16.00		12.70		12.70		12.70		26.0	%		26.0	%		26.0	%
02/27/02	05/05/02	Baxter International Inc	Fusion Medical Technologies		10.00		8.30		8.09		7.49		20.5	%		23.6	%		33.5	%
03/11/02	05/23/02	Valueclick Inc	Be Free Inc		1.95		1.55		1.53		2.15		25.8	%		27.5	%		-9.3	%
03/11/02	06/28/02	Chesapeake Energy Corp	Canaan Energy Corp		18.00		9.75		9.82		10.05		84.6	%		83.3	%		79.1	%
03/18/02	04/26/02	Santos Ltd	Esenjay Exploration Inc		2.84		2.72		2.77		2.63		4.4	%		2.5	%		8.0	%
03/18/02	09/13/02	Network Associates Inc	McAfee.com Corp		15.43		15.54		17.40		16.25		-0.7	%		-11.3	%		-5.0	%
03/18/02	05/14/02	MSC.Software Corp	Mechanical Dynamics Inc		18.85		12.01		14.29		11.00		57.0	%		31.9	%		71.4	%
03/20/02	07/03/02	Schering AG	Collateral Therapeutics Inc		11.25		5.09		4.95		4.25		121.0	%		127.3	%		164.7	%
03/20/02	09/09/02	S&T Bancorp Inc	Peoples Financial Corp Inc		52.20		38.25		38.25		37.00		36.5	%		36.5	%		41.1	%
03/21/02	08/30/02	South Financial Group Inc	Gulf West Banks Inc		13.95		13.30		12.90		11.25		4.9	%		8.1	%		24.0	%
03/22/02	07/07/02	Instrumentarium Corp	SpaceLabs Medical Inc		14.25		15.45		15.30		13.00		-7.8	%		-6.9	%		9.6	%
03/26/02	07/22/02	RBC Centura Banks Inc	Eagle Bancshares Inc		26.00		17.50		16.00		15.45		48.6	%		62.5	%		68.3	%
04/02/02	06/14/02	Kroll Inc	ONTRACK Data International		15.51		9.71		9.50		8.67		59.7	%		63.3	%		78.9	%
04/11/02	08/31/02	Banknorth Group Inc	Bancorp Connecticut Inc		28.00		22.85		22.30		22.50		22.5	%		25.6	%		24.4	%
04/22/02	06/10/02	IXYS Corp	Clare Inc		5.58		6.08		4.85		3.36		-8.2	%		15.1	%		66.1	%
04/23/02	06/05/02	Mentor Graphics Corp	Innoveda Inc		3.95		2.45		2.36		2.01		61.2	%		67.4	%		96.5	%
04/24/02	06/28/02	Cadence Design Systems Inc	Simplex Solutions Inc		14.35		11.63		10.88		9.94		23.4	%		31.9	%		44.4	%
04/25/02	07/17/02	Plantation Petroleum Holdings	Maynard Oil Co		17.00		18.95		18.40		19.50		-10.3	%		-7.6	%		-12.8	%
04/29/02	07/31/02	Synovus Financial Corp	Community Financial Group		26.00		18.54		18.50		18.50		40.2	%		40.5	%		40.5	%
05/02/02	07/31/02	MeriStar Hotels & Resorts Inc	Interstate Hotels Corp		5.57		2.61		2.51		2.58		113.4	%		121.9	%		115.9	%
05/02/02	06/18/02	Level 3 Communications Inc	Software Spectrum Inc		37.00		16.64		16.70		18.50		122.4	%		121.6	%		100.0	%
05/08/02	09/27/02	Olin Corp	Chase Industries Inc		11.52		14.50		14.00		11.80		-20.6	%		-17.7	%		-2.4	%
05/14/02	07/08/02	Boston Scientific Corp	BEI Medical Systems Co		6.84		5.52		5.07		5.80		23.9	%		34.9	%		17.9	%
05/15/02	06/27/02	Cardinal Health Inc	Boron LePore & Associates Inc		16.00		13.33		12.10		12.20		20.0	%		32.2	%		31.1	%
05/15/02	06/26/02	Kellwood Co	Gerber Childrenswear		6.85		8.25		6.80		7.60		-17.0	%		0.7	%		-9.9	%
05/16/02	01/01/03	NSB Holding Corp	Liberty Bancorp		26.50		18.23		18.25		17.87		45.4	%		45.2	%		48.3	%
05/21/02	07/25/02	Castle Harlan Inc	Morton’s Restaurant Group Inc		17.00		15.23		15.50		12.98		11.6	%		9.7	%		31.0	%
05/23/02	10/29/02	SymmetriCom Inc	Datum Inc		16.84		11.41		11.22		11.92		47.6	%		50.1	%		41.3	%
05/29/02	08/01/02	Openwave Systems Inc	SignalSoft Corp		2.26		1.06		1.05		1.17		113.2	%		115.2	%		93.2	%
05/30/02	07/31/02	Tier Technologies Inc	Official Payments Corp		3.00		2.23		2.08		2.44		34.5	%		44.2	%		23.0	%
06/10/02	07/22/02	Novell Inc	SilverStream Software Inc		9.00		5.14		4.81		4.90		75.1	%		87.1	%		83.7	%

Rodman & Renshaw, Inc. 1 of 2

Lexent Inc.

Premiums Paid Analysis — Small Cap.

Transaction Date						Stock Price Before Announcement						Premium Paid
				Transaction
Announced	Effective	Acquiror	Target	Price		1 Day		Week		4 Weeks		1 Day			Week			4 Weeks
06/10/02	09/06/02	SmartForce PLC	SkillSoft Corp		12.67		15.10		17.62		17.92		-16.1	%		-28.1	%		-29.3	%
06/12/02	11/15/02	Cornerstone Equity Investors	Vestcom International Inc		6.25		4.15		3.80		3.50		50.6	%		64.5	%		78.6	%
06/25/02	08/23/02	Liberty Broadband Interactive	Wink Communications Inc		3.00		2.79		1.87		2.31		7.5	%		60.4	%		29.9	%
07/23/02	11/18/02	Umpqua Holdings Corp	Centennial Bancorp		9.35		7.00		7.49		7.40		33.6	%		24.8	%		26.4	%
07/23/02	09/20/02	Synopsys Inc	inSilicon Corp		4.05		2.45		2.45		2.53		65.3	%		65.3	%		60.1	%
07/26/02	02/28/03	Samuel J Heyman	International Specialty Prods		10.30		9.88		10.13		7.70		4.3	%		1.7	%		33.8	%
07/26/02	02/07/03	Valhi Inc	Tremont Corp		65.21		33.20		30.39		29.80		96.4	%		114.6	%		118.8	%
08/01/02	09/09/02	Four Seasons Health Care Ltd	Omega Worldwide Inc		3.32		2.20		2.05		2.00		50.9	%		62.0	%		66.0	%
08/08/02	12/31/02	Banknorth Group Inc	Warren Bancorp Inc		15.75		10.56		12.25		12.20		49.1	%		28.6	%		29.1	%
08/12/02	09/13/02	NRT Inc	DeWolfe Cos Inc		19.00		9.11		8.90		12.60		108.6	%		113.5	%		50.8	%
08/19/02	11/01/02	Berkshire Hathaway Inc	CTB International Corp		12.75		14.67		14.73		12.46		-13.1	%		-13.4	%		2.3	%
08/29/02	01/29/03	RBC Centura Banks Inc	Admiralty Bancorp Inc		26.00		23.32		22.99		21.00		11.5	%		13.1	%		23.8	%
09/25/02	12/13/02	KeyCorp	Union Bankshares Ltd		22.63		13.75		13.00		13.00		64.6	%		74.1	%		74.1	%
10/09/02	01/07/03	Borland Software Corp	Starbase Corp		2.75		0.80		0.76		0.83		243.8	%		261.4	%		231.3	%
10/21/02	01/08/03	King Pharmaceuticals Inc	Meridian Medical Technologies		44.50		38.15		36.77		29.49		16.6	%		21.0	%		50.9	%
10/22/02	12/13/02	Microsoft Corp	Vicinity Corp		3.33		2.24		2.24		2.23		48.7	%		48.7	%		49.3	%
10/24/02	12/02/02	DRS Technologies Inc	Paravant Inc		4.75		3.60		3.50		3.71		31.9	%		35.7	%		28.0	%
11/04/02	02/05/03	SHPS Inc	Ebenx Inc		4.85		1.97		1.65		1.67		146.2	%		193.9	%		190.4	%
11/08/02	02/28/03	Chittenden Corp	Granite State Bankshares		46.00		36.88		35.40		31.38		24.7	%		29.9	%		46.6	%
11/08/02	01/21/03	Investor Group	Prophet 21 Inc		16.30		13.00		12.00		9.16		25.4	%		35.8	%		77.9	%
11/11/02	02/03/03	Hyseq Pharmaceuticals Inc	Variagenics Inc		2.22		0.96		1.04		0.74		131.3	%		113.6	%		200.0	%
11/12/02	12/19/02	Berwind Co LLC	Hunt Corp		12.50		9.45		9.53		9.10		32.3	%		31.2	%		37.4	%
11/14/02	02/10/03	Johnson & Johnson	OraPharma Inc		7.41		7.25		4.44		4.83		2.2	%		66.9	%		53.4	%
11/21/02	03/06/03	H Lundbeck A/S	Synaptic Pharmaceutical Corp		6.50		6.00		4.00		4.01		8.3	%		62.5	%		62.1	%
12/05/02	03/03/03	Dun & Bradstreet Corp	Hoovers Inc		7.00		5.29		5.58		5.14		32.3	%		25.4	%		36.2	%
01/13/03	03/01/03	Synopsys Inc	Numerical Technologies Inc		7.00		3.70		3.70		3.10		89.2	%		89.2	%		125.8	%
01/21/03	03/03/03	Forrester Research Inc	Giga Information Group Inc		4.75		1.56		1.73		1.55		204.5	%		174.6	%		206.5	%
04/16/03	05/30/03	Crane Co	Signal Technology Corp		13.25		13.18		13.14		13.21		0.5	%		0.8	%		0.3	%
											Average:		42.6	%		50.9	%		56.9	%
											Median:		32.1	%		36.2	%		45.5	%
											Low:		-34.8	%		-28.1	%		-40.9	%
											High:		243.8	%		261.4	%		231.3	%

Rodman & Renshaw, Inc. 2 of 2

Lexent Inc.

Premiums Paid Analysis — Comparable Industry

Transaction Date						Stock Price Before Announcement						Premium Paid
				Transaction
Announced	Effective	Acquiror	Target	Price		1 Day		Week		4 Weeks		1 Day			Week			4 Weeks
01/18/99	06/30/99	Vodafone Group PLC	AirTouch Communications Inc	$	97.52	$	69.38	$	64.94	$	56.88		40.6	%		50.2	%		71.5	%
01/29/99	04/19/00	New England Electric System	Eastern Utilities Associates		31.43		30.00		28.63		28.25		4.8	%		9.8	%		11.3	%
02/01/99	05/21/99	America Online Inc	MovieFone Inc		29.25		25.00		21.25		16.50		17.0	%		37.6	%		77.3	%
02/17/99	02/10/00	SCANA Corp	PSNC		33.00		22.75		22.75		25.00		45.1	%		45.1	%		32.0	%
03/04/99	12/29/00	UtiliCorp United Inc	St Joseph Light & Power Co		24.15		16.88		17.00		17.13		43.1	%		42.1	%		41.0	%
03/15/99	10/25/99	El Paso Energy Corp	Sonat Inc		35.75		30.06		25.75		25.62		18.9	%		38.8	%		39.5	%
03/17/99	09/28/99	Global Crossing Ltd	Frontier Corp		49.20		44.63		38.63		34.75		10.3	%		27.4	%		41.6	%
03/23/99	05/27/99	ServiceMaster Co	American Residential Services		5.75		4.38		3.38		3.44		31.4	%		70.4	%		67.3	%
03/25/99	08/18/00	Northern States Power Co	New Century Energies Inc		42.24		38.69		39.00		41.25		9.2	%		8.3	%		2.4	%
04/23/99	02/08/00	Energy East Corp	Connecticut Energy		42.00		31.31		28.00		25.44		34.1	%		50.0	%		65.1	%
05/03/99	08/24/99	Investor Group	Cellular Commun of Puerto Rico		29.50		23.75		26.13		27.50		24.2	%		12.9	%		7.3	%
05/05/99	10/29/99	Thermo Electron Corp	Thermo Power Corp		12.00		11.38		12.19		8.50		5.5	%		-1.5	%		41.2	%
05/18/99	10/05/99	Metromedia International Group	PLD Telekom Inc		2.74		2.75		2.75		2.75		-0.4	%		-0.4	%		-0.4	%
05/21/99	07/30/99	Tandy Corp	AmeriLink Corp		15.34		10.88		9.94		7.13		41.1	%		54.4	%		115.3	%
05/25/99	04/07/00	Investor Group	TNP Enterprises Inc		44.00		34.94		32.94		32.00		25.9	%		33.6	%		37.5	%
05/28/99	10/01/99	MCI WorldCom	SkyTel Communications Inc		19.97		19.31		20.06		17.13		3.4	%		-0.5	%		16.6	%
06/01/99	01/07/00	Yorkshire Water PLC	Aquarion Co		37.05		31.06		28.94		26.56		19.3	%		28.0	%		39.5	%
06/01/99	01/14/00	Liberty Media Group	Associated Group Inc		67.47		65.00		65.25		57.88		3.8	%		3.4	%		16.6	%
06/02/99	09/23/99	Westwood One Inc	Metro Networks Inc		52.50		55.50		57.00		50.06		-5.4	%		-7.9	%		4.9	%
06/07/99	11/04/99	Southern Union Co	Pennsylvania Enterprises Inc		35.00		29.69		29.00		25.88		17.9	%		20.7	%		35.3	%
06/11/99	03/31/00	Indiana Energy Inc	SIGCORP Inc		30.08		29.50		30.00		30.00		2.0	%		0.3	%		0.3	%
06/14/99	06/30/00	Qwest Commun Int Inc	US WEST Inc		82.47		62.25		54.94		55.06		32.5	%		50.1	%		49.8	%
06/15/99	09/01/00	Energy East Corp	CMP Group Inc		29.50		20.06		20.56		20.75		47.0	%		43.5	%		42.2	%
06/15/99	03/01/00	Northeast Utilities	Yankee Energy System Inc		45.00		32.50		30.63		29.63		38.5	%		46.9	%		51.9	%
06/23/99	02/28/00	VoiceStream Wireless Corp	Omnipoint Corp		32.23		20.75		18.00		17.63		55.3	%		79.1	%		82.9	%
06/28/99	04/26/00	Wisconsin Energy Corp	WICOR Inc		31.50		26.56		24.38		25.50		18.6	%		29.2	%		23.5	%
06/30/99	09/01/00	Energy East Corp	CTG Resources Inc		41.00		35.63		32.94		26.94		15.1	%		24.5	%		52.2	%
07/15/99	11/08/00	Eastern Enterprises	EnergyNorth Inc		47.00		29.69		29.63		28.63		58.3	%		58.6	%		64.2	%
07/19/99	01/06/00	AirTouch Cellular	CommNet Cellular Inc		31.00		30.25		32.06		21.43		2.5	%		-3.3	%		44.7	%
07/21/99	11/09/99	Cincinnati Bell Inc	IXC Communications Inc		49.43		36.25		37.31		42.00		36.4	%		32.5	%		17.7	%
08/13/99	09/22/99	Hochtief AG	Turner Corp		28.63		25.31		27.00		21.25		13.1	%		6.0	%		34.7	%
08/22/99	11/29/00	Carolina Power & Light Co	Florida Progress Corp		54.00		44.63		42.63		41.75		21.0	%		26.7	%		29.3	%
08/23/99	11/23/99	PSINet Inc	Transaction Network Services		45.28		34.25		28.00		28.93		32.2	%		61.7	%		56.5	%
08/23/99	07/27/00	Suez Lyonnaise des Eaux SA	United Water Resources Inc		35.00		31.06		24.13		23.19		12.7	%		45.1	%		50.9	%
08/27/99	12/08/99	Viatel Inc	Destia Communications Inc		18.63		13.93		10.81		10.59		33.7	%		72.3	%		75.9	%
09/20/99	05/01/00	VoiceStream Wireless Corp	Aerial Communications Inc		25.51		20.00		18.69		15.00		27.6	%		36.5	%		70.1	%
09/23/99	10/20/00	PECO Energy Co	Unicom Corp		33.90		37.06		38.88		39.38		-8.5	%		-12.8	%		-13.9	%
10/05/99	05/31/01	DTE Energy Co	MCN Energy Group Inc		28.68		17.69		17.06		18.13		62.1	%		68.1	%		58.2	%
10/25/99	03/14/00	Investor Group	MidAmerican Energy Holdings Co		35.05		27.25		27.63		28.94		28.6	%		26.9	%		21.1	%
11/04/99	11/08/00	KeySpan Corp	Eastern Enterprises		64.00		51.56		50.38		48.25		24.1	%		27.0	%		32.6	%
11/08/99	11/10/00	Arch Communications Group Inc	PageNet		0.85		0.97		1.09		0.75		-12.3	%		-22.3	%		13.3	%

Rodman & Renshaw, Inc. 1 of 3

Lexent Inc.

Premiums Paid Analysis — Comparable Industry

Transaction Date						Stock Price Before Announcement						Premium Paid
				Transaction
Announced	Effective	Acquiror	Target	Price		1 Day		Week		4 Weeks		1 Day			Week			4 Weeks
11/15/99	09/28/00	Southern Union Co	Providence Energy Corp		42.50		32.88		31.31		27.88		29.3	%		35.7	%		52.5	%
11/22/99	11/29/00	Thames Water PLC	E’town Corp		68.00		51.88		52.00		45.63		31.1	%		30.8	%		49.0	%
12/01/99	09/20/00	Southern Union Co	Valley Resources Inc		25.00		20.50		18.94		14.25		22.0	%		32.0	%		75.4	%
12/13/99	02/09/00	Mail.com Inc	NetMoves		9.87		5.50		5.06		3.94		79.5	%		95.0	%		150.7	%
12/22/99	04/26/00	GPU Inc	MYR Group Inc		30.10		21.00		20.63		18.88		43.3	%		45.9	%		59.5	%
01/10/00	06/19/00	NextLink Communications Inc	Concentric Network Corp		45.00		30.00		31.63		25.00		50.0	%		42.3	%		80.0	%
01/18/00	01/29/01	El Paso Energy Corp	Coastal Corp		45.66		36.00		34.13		33.44		26.8	%		33.8	%		36.6	%
01/31/00	08/15/00	Thermo Electron Corp	Thermo Ecotek		7.00		6.25		5.75		5.19		12.0	%		21.7	%		34.9	%
01/31/00	08/25/00	Standard Pacific Corp	Writer Corp		3.35		2.25		1.91		1.50		48.9	%		75.8	%		123.3	%
02/17/00	05/02/00	Lennar Corp	US Home Corp		36.00		24.88		25.25		27.06		44.7	%		42.6	%		33.0	%
02/28/00	11/01/00	NiSource Inc	Columbia Energy Group		72.60		57.06		59.94		65.00		27.2	%		21.1	%		11.7	%
02/28/00	12/11/00	PowerGen PLC	LG&E Energy Corp		24.85		15.75		15.69		17.00		57.8	%		58.4	%		46.2	%
02/29/00	11/13/00	TeleCorp PCS Inc	Tritel Inc		41.04		24.00		23.63		26.94		71.0	%		73.7	%		52.4	%
03/13/00	06/22/00	Coachmen Industries Inc	Mod U Kraf Homes Inc		11.75		5.50		5.50		5.88		113.6	%		113.6	%		100.0	%
03/20/00	11/29/00	RMI.NET Inc	Internet Communications Corp		0.42		3.56		4.00		2.94		-88.2	%		-89.5	%		-85.7	%
06/29/00	10/01/00	Infrastrux Group Inc	Utilx Corp		6.13		4.38		4.63		4.06		40.1	%		32.5	%		50.9	%
06/30/00	10/10/01	NS Power Hldg Inc	Bangor Hydro-Electric Co		26.81		15.00		15.25		15.13		78.7	%		75.8	%		77.3	%
07/17/00	03/27/01	AES Corp	IPALCO Enterprises Inc		25.00		21.50		21.38		19.94		16.3	%		17.0	%		25.4	%
07/24/00	05/31/01	Deutsche Telekom AG	VoiceStream Wireless Corp		93.96		124.94		117.06		116.87		-24.8	%		-19.7	%		-19.6	%
08/08/00	11/06/01	FirstEnergy Corp	GPU Inc		36.50		30.70		26.69		28.19		18.9	%		36.8	%		29.5	%
08/24/00	12/22/00	Bracknell Corp	Able Telcom Holding Corp		2.52		3.38		2.50		2.75		-25.3	%		0.8	%		-8.4	%
08/27/00	05/31/01	VoiceStream Wireless Corp	Powertel Inc		106.01		86.63		83.06		86.06		22.4	%		27.6	%		23.2	%
08/28/00	01/24/01	Hovnanian Enterprises Inc	Washington Homes Inc		10.08		7.13		7.25		6.50		41.5	%		39.0	%		55.1	%
09/05/00	07/01/01	WorldCom Inc	Intermedia Communications Inc		16.19		22.88		20.88		19.44		-29.2	%		-22.4	%		-16.7	%
09/05/00	01/31/02	National Grid Group PLC	Niagara Mohawk Holdings Inc		19.00		13.88		12.75		14.00		36.9	%		49.0	%		35.7	%
10/02/00	04/25/01	Genesis Malaysia Maju Fund	Vialog Corp		7.19		8.81		7.88		8.19		-18.4	%		-8.7	%		-12.2	%
10/03/00	12/07/00	McLeodUSA Inc	CapRock Communications Corp		5.06		5.06		5.53		5.44		0.0	%		-8.5	%		-6.9	%
10/12/00	12/31/00	Technical Olympic USA Inc	Engle Homes Inc		19.10		15.75		15.63		15.75		21.3	%		22.2	%		21.3	%
10/27/00	03/16/01	Enron Corp	Azurix Corp		8.38		3.56		3.56		3.58		135.2	%		135.2	%		134.2	%
11/03/00	04/02/01	Cendant Corp	Fairfield Communities Inc		16.00		13.94		12.50		10.56		14.8	%		28.0	%		51.5	%
02/12/01	08/01/02	Potomac Electric Power Company	Conectiv Inc		25.00		21.00		18.82		18.38		19.0	%		32.8	%		36.1	%
02/20/01	06/28/02	Energy East Corp	RGS Energy Group		39.37		33.10		33.10		30.06		18.9	%		18.9	%		31.0	%
03/16/01	05/11/01	Enbridge Inc	Midcoast Energy Resources Inc		27.00		25.20		26.25		22.60		7.1	%		2.9	%		19.5	%
04/27/01	07/09/01	TransWestern Publishing Co LLC	WorldPages.com Inc		3.00		2.20		2.35		1.85		36.4	%		27.7	%		62.2	%
05/01/01	07/31/01	Pulte Homes Inc	Del Webb Corp		41.82		33.80		30.80		30.50		23.7	%		35.8	%		37.1	%
09/17/01	01/10/03	RWE AG	American Water Works Co Inc		46.00		32.74		33.43		31.14		40.5	%		37.6	%		47.7	%
09/24/01	12/12/01	VeriSign Inc	Illuminet Holdings Inc		35.62		34.98		34.06		31.48		1.8	%		4.6	%		13.2	%
09/27/01	02/19/02	Reliant Resources Inc	Orion Power Holdings Inc		26.80		19.20		17.65		22.40		39.6	%		51.8	%		19.6	%
10/08/01	02/15/02	AT&T Wireless Services Inc	TeleCorp PCS Inc		14.51		10.04		10.01		13.01		44.5	%		45.0	%		11.5	%
10/23/01	02/22/02	DR Horton Inc	Schuler Homes Inc		21.96		12.00		11.82		12.11		83.0	%		85.8	%		81.3	%
11/07/01	01/07/02	UtiliCorp United Inc	Aquila Inc		20.69		17.99		18.35		24.65		15.0	%		12.8	%		-16.1	%

Rodman & Renshaw, Inc. 2 of 3

Lexent Inc.

Premiums Paid Analysis — Comparable Industry

Transaction Date						Stock Price Before Announcement						Premium Paid
				Transaction
Announced	Effective	Acquiror	Target	Price		1 Day		Week		4 Weeks		1 Day			Week			4 Weeks
11/21/01	05/24/02	D&E Communications Inc	Conestoga Enterprises Inc		33.00		24.50		23.76		24.10		34.7	%		38.9	%		36.9	%
01/07/02	02/27/02	Dycom Industries Inc	Arguss Communications Inc		5.76		4.42		4.06		3.76		30.3	%		41.9	%		53.2	%
01/10/02	02/21/02	US RealTel Inc	Cypress Communications Inc		3.50		1.99		1.86		1.50		75.9	%		88.2	%		133.3	%
01/30/02	04/17/02	Beazer Homes USA	Crossmann Communities Inc		46.48		30.23		30.99		33.00		53.8	%		50.0	%		40.8	%
02/15/02	06/03/02	Xcel Energy Inc	NRG Energy Inc		12.86		10.00		9.60		13.27		28.6	%		34.0	%		-3.1	%
											Average:		27.4	%		32.9	%		40.1	%
											Median:		26.8	%		33.6	%		37.5	%
											Low:		-88.2	%		-89.5	%		-85.7	%
											High:		135.2	%		135.2	%		150.7	%

Rodman & Renshaw, Inc. 3 of 3

Lexent Inc.

Premiums Paid Analysis — Majority Shareholder Acquiror

Transaction Date						Stock Price Before Announcement						Premium Paid
				Transaction
Announced	Effective	Acquiror	Target	Price		1 Day		Week		4 Weeks		1 Day			Week			4 Weeks
02/24/99	05/21/99	Investor Group	Industrial Scientific	$	28.50	$	20.50	$	20.38	$	20.50		39.0	%		39.9	%		39.0	%
03/08/99	12/01/99	Investor Group	ENStar Inc		12.50		8.00		7.88		8.25		56.3	%		58.7	%		51.5	%
03/09/99	06/30/99	Kerr-McGee Corp	Sun Energy Partners LP		5.75		4.06		4.00		3.81		41.6	%		43.8	%		50.9	%
03/21/99	07/01/99	Viacom Inc	Spelling Entertainment Group		9.75		9.00		6.81		6.31		8.3	%		43.2	%		54.5	%
03/24/99	11/04/99	Warburg, Pincus Ventures Inc	Knoll Inc		28.00		15.25		18.44		19.13		83.6	%		51.9	%		46.4	%
04/01/99	08/15/99	Vivendi SA	Aqua Alliance Inc		2.90		2.25		2.44		1.44		28.9	%		19.0	%		101.7	%
04/12/99	06/30/99	Investor Group	Meadowcraft Inc		10.00		6.06		6.13		5.63		64.9	%		63.3	%		77.8	%
04/29/99	08/09/99	Killearn Inc	Killearn Properties Inc		5.50		5.00		5.00		5.13		10.0	%		10.0	%		7.3	%
05/05/99	10/29/99	Thermo Electron Corp	Thermo Power Corp		12.00		11.38		12.19		8.50		5.5	%		-1.5	%		41.2	%
05/07/99	07/30/99	McDermott International Inc	J Ray McDermott SA		35.62		30.50		31.50		29.87		16.8	%		13.1	%		19.3	%
05/21/99	12/10/99	Thermo Instrument Systems Inc	ThermoSpectra		16.00		11.50		11.13		9.94		39.1	%		43.8	%		61.0	%
07/13/99	01/07/00	Thermo Instrument Systems Inc	Thermo Vision		7.00		4.00		4.38		3.38		75.0	%		60.0	%		107.4	%
10/20/99	06/06/00	Thermo Electron Corp	Thermoretec Corp		7.00		5.50		5.25		5.19		27.3	%		33.3	%		34.9	%
11/05/99	11/05/99	Discount Investment Corp	PEC Israel Economic Corp		36.50		36.44		36.13		35.50		0.2	%		1.0	%		2.8	%
11/16/99	09/22/00	Thermo Electron Corp	Thermo TerraTech Inc		6.00		7.13		6.63		5.38		-15.8	%		-9.4	%		11.6	%
12/01/99	04/19/00	Boise Cascade Corp	Boise Cascade Office Products		16.50		11.50		10.63		10.31		43.5	%		55.3	%		60.0	%
12/08/99	06/19/00	Heico Companies LLC	Robertson-Ceco Corp		11.50		7.88		8.00		8.13		46.0	%		43.8	%		41.5	%
12/15/99	08/15/00	Thermo Electron Corp	ThermoLase Corp		2.73		2.38		2.13		1.88		14.9	%		28.5	%		45.6	%
12/17/99	08/15/00	Thermo Electron Corp	ThermoTrex Corp		8.26		8.75		8.31		8.00		-5.6	%		-0.6	%		3.3	%
01/19/00	04/19/00	Metropolitan Life Insurance Co	Conning Corp		12.50		10.81		9.00		8.22		15.6	%		38.9	%		52.1	%
01/31/00	05/03/00	Thermo Instrument Systems Inc	Metrika Systems Corp		9.00		9.63		9.00		6.13		-6.5	%		0.0	%		46.9	%
01/31/00	04/13/00	Thermo Instrument Systems Inc	ONIX Systems Inc		9.00		8.75		7.75		6.50		2.9	%		16.1	%		38.5	%
01/31/00	04/12/00	Thermedics	Thermedics Detection Inc		8.00		7.94		7.94		7.00		0.8	%		0.8	%		14.3	%
01/31/00	04/20/00	Thermo Instrument Systems Inc	Thermo BioAnalysis		28.00		18.50		18.00		18.25		51.4	%		55.6	%		53.4	%
01/31/00	05/12/00	Thermo Instrument Systems Inc	Thermo Optek Corp		15.00		14.06		15.81		10.63		6.7	%		-5.1	%		41.2	%
01/31/00	04/04/00	Thermedics	Thermo Sentron Inc		15.50		14.44		14.50		14.50		7.4	%		6.9	%		6.9	%
01/31/00	05/12/00	Thermo Instrument Systems Inc	ThermoQuest Corp		17.00		12.50		11.56		10.50		36.0	%		47.0	%		61.9	%
01/31/00	06/30/00	Thermo Electron Corp	Thermedics		10.80		6.13		5.81		5.31		76.3	%		85.8	%		103.3	%
02/02/00	06/30/00	Thermo Electron Corp	Thermo Instrument Systems Inc		20.40		16.06		15.31		10.50		27.0	%		33.2	%		94.3	%
03/14/00	06/20/00	Alcoa Inc	Howmet International Inc		21.00		18.50		18.63		18.38		13.5	%		12.8	%		14.3	%
03/17/00	09/15/00	BP Amoco PLC	Vastar Resources Inc		83.00		71.44		61.50		49.00		16.2	%		35.0	%		69.4	%
03/23/00	06/08/00	Security Capital Group Inc	Homestead Village Inc		4.10		2.75		2.63		2.06		49.1	%		56.2	%		98.8	%
03/27/00	06/27/00	Hartford Fin Svcs Group Inc	Hartford Life		50.50		42.56		36.00		35.25		18.6	%		40.3	%		43.3	%
04/24/00	07/17/00	Investor Group	Cherry Corp		26.40		13.00		12.63		15.50		103.1	%		109.1	%		70.3	%
05/04/00	12/31/00	Intermountain Industries	Petroglyph Energy Inc		2.85		2.00		1.38		1.63		42.5	%		107.3	%		75.4	%
07/09/00	09/14/00	Invitrogen Corp	Life Technologies Inc		60.00		49.00		49.00		50.00		22.4	%		22.4	%		20.0	%
07/20/00	11/17/00	Kennametal Inc	JLK Direct Distribution Inc		8.75		5.88		4.50		5.19		48.9	%		94.4	%		68.7	%
07/27/00	09/13/00	Investor Group	Brookdale Living Communities		15.25		15.00		14.88		14.56		1.7	%		2.5	%		4.7	%
08/14/00	07/13/01	News Corp Ltd	BHC Communications Inc		165.00		141.75		145.50		150.00		16.4	%		13.4	%		10.0	%
08/15/00	02/21/01	Viacom Inc	Infinity Broadcasting Corp		32.89		35.25		37.44		35.38		-6.7	%		-12.1	%		-7.0	%
08/30/00	01/03/01	AXA Group	AXA Financial Inc		54.63		52.25		49.75		40.69		4.6	%		9.8	%		34.3	%
09/01/00	12/18/00	Minolta Investments Co	Minolta-QMS Inc		6.00		3.00		3.00		3.06		100.0	%		100.0	%		95.9	%

Rodman & Renshaw, Inc. 1 of 2

Lexent Inc.

Premiums Paid Analysis — Majority Shareholder Acquiror

Transaction Date						Stock Price Before Announcement						Premium Paid
				Transaction
Announced	Effective	Acquiror	Target	Price		1 Day		Week		4 Weeks		1 Day			Week			4 Weeks
09/21/00	03/09/01	Ford Motor Co	Hertz Corp		35.50		24.25		24.88		31.69		46.4	%		42.7	%		12.0	%
10/25/00	07/31/01	Investor Group	Uno Restaurant Corp		9.75		7.31		6.06		6.81		33.3	%		60.8	%		43.1	%
10/27/00	03/16/01	Enron Corp	Azurix Corp		8.38		3.56		3.56		3.58		135.2	%		135.2	%		134.2	%
11/10/00	01/31/01	HCH Acquisition Corp	Holt’s Cigar Holding Inc		5.50		3.50		3.81		3.56		57.1	%		44.3	%		54.4	%
12/14/00	08/31/01	O Gene Bicknell	NPC International Inc		11.55		10.38		10.81		8.75		11.3	%		6.8	%		32.0	%
12/20/00	04/12/01	Vitamin Shoppe Industries Inc	Vitaminshoppe.com Inc		1.00		0.31		0.47		0.38		220.0	%		113.3	%		166.7	%
01/16/01	12/01/01	Investor Group	Leslie Fay Co Inc		5.00		2.88		2.81		3.13		73.9	%		77.8	%		60.0	%
02/15/01	09/28/01	Westfield America Trust	Westfield America Inc		16.25		14.45		14.55		14.19		12.5	%		11.7	%		14.5	%
03/26/01	08/21/01	Credit Suisse First Boston	CSFBdirect		6.00		2.50		2.97		3.45		140.0	%		102.0	%		73.9	%
05/09/01	07/26/02	Investor Group	Pierre Foods Inc		2.50		1.63		0.97		1.00		53.8	%		158.1	%		150.0	%
05/14/01	10/31/01	Seneca Investments LLC	Agency.com Ltd		3.35		2.05		2.31		1.28		63.4	%		45.0	%		161.7	%
05/23/01	09/28/01	Electronic Data Systems Corp	Unigraphics Solutions Inc		32.50		21.25		19.25		17.98		52.9	%		68.8	%		80.8	%
05/30/01	09/06/01	Bacou SA	Bacou USA Inc		28.50		23.40		24.30		25.60		21.8	%		17.3	%		11.3	%
06/06/01	12/13/01	Liberty Mutual Insurance Co	Liberty Financial Cos Inc		33.70		27.00		24.06		24.00		24.8	%		40.1	%		40.4	%
08/01/01	01/18/02	Dwain Neumann	National Home Centers Inc		1.40		1.11		1.16		1.05		26.1	%		20.7	%		33.3	%
08/16/01	01/24/03	Northwest Bancorp	Leeds Federal Bankshares Inc		32.00		16.40		16.75		16.35		95.1	%		91.0	%		95.7	%
08/21/01	02/26/02	Thermo Electron Corp	Spectra Physics Inc		17.50		13.69		17.61		19.00		27.8	%		-0.6	%		-7.9	%
09/13/01	12/28/01	MRV Communications Inc	Luminent Inc		1.26		1.35		1.20		2.70		-6.7	%		5.0	%		-53.3	%
10/01/01	02/13/02	Investor Group	NCH Corp		52.50		39.19		39.30		44.20		34.0	%		33.6	%		18.8	%
10/12/01	03/15/02	Liberty Media Corp	Liberty Digital		3.23		2.93		3.13		4.49		10.2	%		3.2	%		-28.1	%
11/07/01	01/07/02	UtiliCorp United Inc	Aquila Inc		20.69		17.99		18.35		24.65		15.0	%		12.8	%		-16.1	%
02/04/02	03/21/02	Limited Inc	Intimate Brands Inc		19.72		17.90		16.72		15.81		10.2	%		17.9	%		24.7	%
02/15/02	06/03/02	Xcel Energy Inc	NRG Energy Inc		12.86		10.00		9.60		13.27		28.6	%		34.0	%		-3.1	%
02/19/02	04/11/02	Sabre Holdings Corp	Travelocity.com Inc		28.00		19.20		19.96		22.86		45.8	%		40.3	%		22.5	%
03/04/02	06/28/02	IOS Brands Corp	FTD.COM INC		3.35		9.00		8.74		7.79		-62.8	%		-61.7	%		-57.0	%
03/08/02	04/16/02	Lufthansa Technik AG	Hawker Pacific Aerospace		3.25		3.17		3.15		2.59		2.5	%		3.2	%		25.5	%
03/18/02	09/13/02	Network Associates Inc	McAfee.com Corp		15.43		15.54		17.40		16.25		-0.7	%		-11.3	%		-5.0	%
04/18/02	02/21/03	Investor Group	Partsbase Inc		1.50		1.10		1.04		0.77		36.4	%		44.2	%		94.8	%
05/16/02	08/19/02	IPC Advisors SARL	Balanced Care Corp		0.25		0.10		0.09		0.10		150.0	%		177.8	%		150.0	%
05/31/02	01/17/03	USA Interactive	Ticketmaster		15.85		21.50		22.00		22.03		-26.3	%		-28.0	%		-28.1	%
07/26/02	02/07/03	Valhi Inc	Tremont Corp		65.21		33.20		30.39		29.80		96.4	%		114.6	%		118.8	%
08/14/02	12/31/02	First Banks Inc	First Banks America Inc		40.54		40.35		41.50		40.09		0.5	%		-2.3	%		1.1	%
08/20/02	10/31/02	Union Oil Co of California	Pure Resources Inc		21.48		17.80		16.91		17.55		20.7	%		27.0	%		22.4	%
04/07/03	05/05/03	Computer Network Technology	INRANGE Technologies Corp		2.31		2.27		2.28		2.31		1.8	%		1.3	%		0.0	%
											Average:		35.2	%		38.3	%		44.9	%
											Median:		26.6	%		33.8	%		41.2	%
											Low:		-62.8	%		-61.7	%		-57.0	%
											High:		220.0	%		177.8	%		166.7	%

Rodman & Renshaw, Inc. 2 of 2

Lexent Inc.

Discounted Cash Flow

		2002			2003E			2004E			2005E			2006E			2007E
Net income					$	(16,720	)	$	(5,585	)	$	(1,799	)	$	1,128		$	1,949
Adjustments Depreciation						2,455			1,240			1,248			919			947
	Non-cash stock based compensation					3,036			—			—			—			—
	Loss of deposit					—			—			—			—			—
	Changes in working capital					18,583			(1,294	)		(989	)		(790	)		(450	)
	Capital expenditure					(3,415	)		(950	)		(1,150	)		(1,150	)		(1,150	)
	Debt repayment					(2,105	)		(394	)		—			—			—
	Payments from restructuring					(4,053	)		(1,400	)		(1,200	)		(740	)		(750	)
	Long-term incentive compensation					600			600			600			600			—
	Total adjustments					15,101			(2,198	)		(1,491	)		(1,162	)		(1,403	)
Net cash flow from operations						(1,620	)		(7,784	)		(3,289	)		(33	)		546
Terminal value:
	2007 EBITDA																	1,808
	EV/EBITDA multiple																	6.0
	Projected EV																	10,845
	Less restructuring reserve																	(2,446	)
	Less incentive comp																	(3,000	)
	Equity value																	5,399
Total cash flows		$	72,411		$	(1,620	)	$	(7,784	)	$	(3,289	)	$	(33	)	$	5,945
		Low			High
Discount rate			25.0	%		15.0	%
Equity value		$	65,673		$	65,419
Price per share		$	1.54		$	1.53

Rodman & Renshaw, Inc. 1 of 1

Lexent Inc.

Liquidation Value

	April 30, 2003
				Low						High
	Book
	Value			%			Value			%			Value
Cash	$	76,968			100	%	$	76,968			100	%	$	76,968
Certificate of deposit		2,007			0	%		—			0	%		—
Accounts receivable		17,360			70	%		12,152			85	%		14,756
Retention receivable		3,224			70	%		2,257			85	%		2,740
Reserve for doubtful accounts		(4,323	)		100	%		(4,323	)		100	%		(4,323	)
Costs and est. earnings in excess of billings		3,516			30	%		1,055			60	%		2,110
Unbilled receivables		214			70	%		150			85	%		182
Costs of uncompleted jobs		1,205			30	%		362			60	%		723
Interest receivable		60			70	%		42			100	%		60
Prepaids and other current assets		1,677			0	%		—			0	%		—
Taxes receivable		—			100	%		—			100	%		—
Total current assets		101,908						88,662						93,216
PP&E, net		3,366			40	%		1,346			70	%		2,356
Other assets		846			0	%		—			50	%		423
Total assets		106,120						90,008						95,995
Less liabilities		(23,228	)					(23,228	)					(23,228	)
Net value		82,892						66,780						72,767
Operating losses during shutdown period		—						(8,721	)					(8,721	)
Severance & other termination costs		—						(4,187	)					(4,187	)
Lease obligations, 2004 and beyond		—						(8,568	)					(4,284	)
Liquidation value		82,892						45,304						55,574
Shares outstanding		42,690						42,690						42,690
								.
Value per share	$	1.94					$	1.06					$	1.30

Rodman & Renshaw, Inc. 1 of 1

Lexent Inc.

Projections

		2002			2003E			2004E			2005E			2006E			2007E
Revenue:
	HOK		91,821			78,048			80,389			82,801			85,285			87,844
	NNT		33,784			5,710			—			—			—			—
	LSI		4,177			7,310			10,965			12,061			13,267			13,931
	LMC		—			—			790			1,270			1,750			2,230
	Intercompany		(5,937	)		—			—			—			—			—
	Total		123,845			91,068			92,144			96,132			100,302			104,004
Direct costs:
	HOK		83,168			66,341			64,955			65,910			66,863			68,869
	NNT		29,297			4,283			—			—			—			—
	LSI		3,400			5,848			8,772			9,046			9,950			10,448
	LMC		—			—			460			474			488			503
	Corp.		(31	)		—			—			—			—			—
	Intercompany		(5,937	)		—			—			—			—			—
	Total		109,897			76,471			74,186			75,429			77,302			79,820
Overhead:
	HOK		16,361			11,707			8,843			8,280			8,528			8,784
	NNT		2,957			1,028			—			—			—			—
	LSI		1,313			1,096			1,206			1,206			1,194			1,254
	LMC		—			—			600			618			637			656
	Total		20,631			13,831			10,649			10,104			10,359			10,694
Gross profit:
	HOK		(7,708	)		—			6,592			8,611			9,893			10,190
	NNT		1,530			400			—			—			—			—
	LSI		(536	)		365			987			1,809			2,123			2,229
	LMC		—			—			(270	)		178			625			1,072
	Corp.		31			—			—			—			—			—
	Intercompany		—			—			—			—			—			—
	Total		(6,683	)		765			7,309			10,599			12,641			13,490
General & administrative			16,031			13,626			12,945			12,298			11,683			11,683
EBITDA			(22,714	)		(12,861	)		(5,636	)		(1,699	)		958			1,808
Depreciation & amortization			4,786			2,455			1,240			1,248			919			947
Non-cash stock based compensation			3,298			3,036			—			—			—			—
Restructuring charges			9,133			—			—			—			—			—
EBIT			(39,931	)		(18,352	)		(6,876	)		(2,947	)		40			861
Interest expense			245			60			9			—			—			—
Interest income			(1,350	)		(1,320	)		(1,290	)		(1,149	)		(1,089	)		(1,088	)
Other expense/(income), net			3,744			—			—			—			—			—
Impairment of goodwill			1,514			—			—			—			—			—
Income before taxes			(44,084	)		(17,092	)		(5,585	)		(1,799	)		1,128			1,949
Provision for income tax			6,214			(372	)		—			—			—			—
Net income			(50,298	)		(16,720	)		(5,585	)		(1,799	)		1,128			1,949
Balance sheet items:
	Cash & equivalents		72,411			70,791			63,008			59,719			59,685			60,231
	Working capital, excl. restructuring		27,619			9,036			10,330			11,319			12,109			12,559
	Sub. debt & capital leases		2,499			394			—			—			—			—
	Restructuring reserve		10,589			6,536			5,136			3,936			3,196			2,446
	Long-term incentive compensation		600			1,200			1,800			2,400			3,000			3,000
	NOL		19,692			36,784			42,370			44,168			43,040			41,091

Rodman & Renshaw, Inc. 1 of 2

Lexent Inc.

Projections

		2002			2003E			2004E			2005E			2006E			2007E
Assumptions
Revenue growth rates:
	HOK					-15.0	%		3.0	%		3.0	%		3.0	%		3.0	%
	NNT					-83.1	%		-100.0	%		0.0	%		0.0	%		0.0	%
	LSI					75.0	%		50.0	%		10.0	%		10.0	%		5.0	%
	LMC				#DIV/0!			#DIV/0!				60.8	%		37.8	%		27.4	%
Intercompany revenue % of HOK & NNT			-4.7	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Direct costs:
	HOK		90.6	%		85.0	%		80.8	%		79.6	%		78.4	%		78.4	%
	NNT		86.7	%		75.0	%		75.0	%		75.0	%		75.0	%		75.0	%
	LSI		81.4	%		80.0	%		80.0	%		75.0	%		75.0	%		75.0	%
	LMC	#DIV/0!			#DIV/0!				58.2	%		37.3	%		27.9	%		22.5	%
Overhead:
	HOK		17.8	%		15.0	%		11.0	%		10.0	%		10.0	%		10.0	%
	NNT		8.8	%		18.0	%		11.0	%		10.0	%		10.0	%		10.0	%
	LSI		31.4	%		15.0	%		11.0	%		10.0	%		9.0	%		9.0	%
	LMC	#DIV/0!			#DIV/0!				75.9	%		48.7	%		36.4	%		29.4	%
G&A growth rate						-15.0	%		-5.0	%		-5.0	%		-5.0	%		0.0	%
Interest expense % (prior year)						2.4	%		2.4	%		2.4	%		2.4	%		2.4	%
Interest income % (prior year)						-1.8	%		-1.8	%		-1.8	%		-1.8	%		-1.8	%
Depreciation
Existing PP&E
	Balance, beginning					4,033			1,790			895			179			—
	Depreciation					(2,243	)		(895	)		(716	)		(179	)		—
	Balance, ending					1,790			895			179			—			—
	Gross balance								1,790			1,790			1,790			1,790
	% depreciated								50.0	%		40.0	%		10.0	%		0.0	%
Maintenance capex
	Balance, beginning					—			540			1,140			1,760			2,180
	Additions					600			800			1,000			1,000			1,000
	Depreciation					(60	)		(200	)		(380	)		(580	)		(780	)
	Balance, ending					540			1,140			1,760			2,180			2,400
	Gross balance					600			1,400			2,400			3,400			4,400
	Depreciable life, years					5			5			5			5			5
LMC capex
	Balance, beginning					—			2,815			2,821			2,819			2,809
	Additions					2,815			150			150			150			150
	Depreciation					—			(145	)		(152	)		(160	)		(167	)
	Balance, ending					2,815			2,821			2,819			2,809			2,792
	Gross balance					2,815			2,965			3,115			3,265			3,415
	Depreciable life, years								20			20			20			20
Capital expenditure, maintenance			1,019			600			800			1,000			1,000			1,000
Capital expenditure, LMC			—			2,815			150			150			150			150
Working capital as % of sales			22.3	%		9.9	%		9.9	%		9.9	%		9.9	%		9.9	%

Rodman & Renshaw, Inc. 2 of 2

Lexent Inc.

Shutdown Operating Budget

	3/31/2003			4/30/2003			5/31/2003			6/30/2003			7/31/2003			8/31/2003			9/30/2003
Management Budget
Revenue	$	7,589		$	7,589		$	7,589		$	7,589		$	7,589		$	7,589		$	7,589
Direct costs		6,373			6,373			6,373			6,373			6,373			6,373			6,373
Overhead		1,153			1,153			1,153			1,153			1,153			1,153			1,153
Gross profit		64			64			64			64			64			64			64
General & administrative		1,136			1,136			1,136			1,136			1,136			1,136			1,136
EBITDA		(1,072	)		(1,072	)		(1,072	)		(1,072	)		(1,072	)		(1,072	)		(1,072	)
Direct costs %		84.0	%		84.0	%		84.0	%		84.0	%		84.0	%		84.0	%		84.0	%
Overhead %		15.2	%		15.2	%		15.2	%		15.2	%		15.2	%		15.2	%		15.2	%
6 Month Shutdown Plan
Revenue	$	7,589		$	7,589		$	5,692		$	3,794		$	1,897		$	—		$	—
Direct costs		6,373			6,373			4,779			3,186			1,593			—			—
Overhead		1,153			911			797			645			379			—			—
Gross profit		64			306			115			(37	)		(75	)		—			—
General & administrative		1,136			1,136			1,136			852			568			284			—
Incremental bad debt expense		1,138			1,138			854			569			285			—			—
EBITDA		(2,210	)		(1,968	)		(1,874	)		(1,458	)		(928	)		(284	)		—
Revenue, % of budget		100.0	%		100.0	%		75.0	%		50.0	%		25.0	%		0.0	%		0.0	%
Direct costs %		84.0	%		84.0	%		84.0	%		84.0	%		84.0	%		84.0	%		84.0	%
Overhead %		15.2	%		12.0	%		14.0	%		17.0	%		20.0	%		0.0	%		0.0	%
G&A, % of budget		100.0	%		100.0	%		100.0	%		75.0	%		50.0	%		25.0	%		0.0	%
Inc. bad debt expense, % of revenue		15.0	%		15.0	%		15.0	%		15.0	%		15.0	%		15.0	%		15.0	%

	10/31/2003			11/30/2003			12/31/2003			1/31/2004			2/29/2004			Total
Management Budget
Revenue	$	7,589		$	7,589		$	7,589		$	7,589		$	7,589		$	91,068
Direct costs		6,373			6,373			6,373			6,373			6,373			76,471
Overhead		1,153			1,153			1,153			1,153			1,153			13,831
Gross profit		64			64			64			64			64			765
General & administrative		1,136			1,136			1,136			1,136			1,136			13,626
EBITDA		(1,072	)		(1,072	)		(1,072	)		(1,072	)		(1,072	)		(12,861	)
Direct costs %		84.0	%		84.0	%		84.0	%		84.0	%		84.0	%
Overhead %		15.2	%		15.2	%		15.2	%		15.2	%		15.2	%
6 Month Shutdown Plan
Revenue	$	—		$	—		$	—		$	—		$	—		$	26,561
Direct costs		—			—			—			—			—			22,304
Overhead		—			—			—			—			—			3,885
Gross profit		—			—			—			—			—			373
General & administrative		—			—			—			—			—			5,110
Incremental bad debt expense		—			—			—			—			—			3,984
EBITDA		—			—			—			—			—			(8,721	)
Revenue, % of budget		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Direct costs %		84.0	%		84.0	%		84.0	%		84.0	%		84.0	%
Overhead %		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
G&A, % of budget		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Inc. bad debt expense, % of revenue		15.0	%		15.0	%		15.0	%		15.0	%		15.0	%

Rodman & Renshaw, Inc. 1 of 1

Presentation to: July 9, 2003 Confidential

This fairness analysis, as presented to Lexent Inc. ("Lexent" or the "Company") on July 9, 2003, has been prepared by Rodman & Renshaw, Inc. ("Rodman") in support of our opinion as to the fairness from a financial point of view of the cash consideration to be paid to the stockholders of Lexent (other than members of the Management Group (as defined below)) in connection with the merger of the company with a newly formed entity owned by certain members of management and directors of the Company (the "Management Group"). This analysis is for the confidential use of the Company only in their evaluation of the proposed transaction. Any other use of this analysis or any publication of this analysis without Rodman's prior written consent is strictly prohibited, provided, however, that Rodman hereby consents to the inclusion of and references to this analysis in its entirety in the merger proxy relating to the proposed transaction. In the preparation of this analysis, Rodman reviewed business and financial information of Lexent as provided by the Company and discussed this information with management of the Company. Rodman has not independently verified the completeness or accuracy of any of the information it has relied upon and has assumed that the information reflects management's best estimates and judgment. Rodman has not undertaken an independent appraisal of the assets or liabilities (contingent or otherwise) of Lexent nor have we been furnished with any such appraisals. In arriving at its conclusion, Rodman did not attribute any particular weight to the analyses or factors it considered, but rather made qualitative judgments as to the significance and relevancy of each piece of analysis and factor. Our opinion, this analysis, and any conclusions drawn therefrom, do not constitute a recommendation as to any action any shareholder of Lexent should take in connection with the proposed transaction. Further, we express no opinion herein as to the structure, terms or effect of any other aspect of the transaction, including, without limitation, the tax consequences thereof. Our opinion, this analysis, and any conclusions drawn therefrom, are necessarily based on economic, market and other conditions as they exist, and the information made available to us, as of the date hereof.

Rodman & Renshaw Table of Contents Executive Summary Section I Situation Analysis Section II Valuation Analysis Section III

Section I Executive Summary

Executive Summary Current Situation On February 18, 2003, Lexent Inc. ("Lexent") announced it had received an offer from a management group (the "Management Group") to purchase all the common shares of the company they do not already own for $1.25. On June 17, 2003, the Management Group announced an increased in the price of their offer to $1.50 per share. The Management Group, led by Hugh O'Kane, Chairman, and Kevin O'Kane, Vice Chairman and Chief Executive Officer, currently owns in excess of 50% of the common shares of Lexent. Lexent's common shares closed at $0.91 per share on February 14, 2003, the trading day immediately preceding the initial announcement. Lexent is an infrastructure services company that designs, deploys and maintains fiber optic, electrical and life safety systems for telecommunications carriers and enterprise organizations.

Historical Operating Performance Excludes restructuring, bad debt and non-cash stock compensation expenses (in thousands)

Executive Summary (in thousands except per share amounts) (a) Includes options as determined by the treasury method

Section II Situation Analysis

Summary After an intense period of expansion following the deregulatory 1996 Telecom Act and the increased demand derived from the initial growth of the Internet, the telecommunications industry is undergoing a significant contraction. During the 1990s, driven by the advent of wireless and the Internet, telecom industry revenues grew at a 10% CAGR, more than twice its historical rate. Excluding the impact of bankruptcies, telecom industry revenues shrank 3% in 2002. U.S. Wireline annual capital expenditures grew three-fold to over $100 billion in 2000. Spending declined 20% in 2001, and 53% in 2002. Outlook for 2003 calls for an additional 10% retraction. Valuations for every communications related concern have retracted significantly. The NASDAQ Telecom Index is down 90% over the last three years versus declines of 70%, 40% and 23% for the NASDAQ Composite S&P500 and DOW30 respectively. TELECOM FUNDAMENTALS

Performance The NASDAQ Telecom Index is down 90% over the last three years versus declines of 70%, 40% and 23% for the NASDAQ Composite S&P500 and DOW30 respectively. The sell off is largely broad based with little variation from long distance providers, wireless carriers, to equipment vendors. Even the larger more stable regional bell operating companies (VZ, BLS, SBC, Q) are suffering, with earnings down 40%. TELECOM FUNDAMENTALS

Wireline Communications TELECOM FUNDAMENTALS 2002 US Wireline CAPx came in 55% below 2001, the outlook for 2003 does not look promising. Between 1996 and 2001, fiber miles deployed by all carriers doubled, in 2002 more fiber went dark then was lit. The bankruptcy filings by WorldCom, Global Crossing and others, coupled with high debt loads at other major carriers has sent the entire sector into a nosedive. Competitive entry following the 1996 Telecom Act has reversed. Mergers and to a larger degree bankruptcy filings has driven the number of public telcos from 48 in 1999 to 20 in 2002. 1996 1997 1998 1999 2000 2001 2002E Total US 37881 44735 54306 77387 102835 81836 38187 Y/Y Change 0.22 0.18 0.21 0.43 0.33 -0.2 -0.53 1995 1996 1997 1998 1999 2000 2001 2002 Total US 21 27 31 35 48 43 26 20

ILECs TELECOM FUNDAMENTALS After growing revenues at 5% CAGR between 1996 and 2001, revenues at the incumbent local exchange carriers (ILECs) declined 3% in 2002, despite a reduction in competition and their expansion into long distance markets . Through a combination of customer spending reductions and competition, largely from resellers, ILEC phone lines in service are shrinking at a 3% annualized rate. Responding to competition, ILECs increased capital spending to $32 billion in 2000, representing 20% of revenues. In 2002, CAPx fell 38% to $18 billion or 11% of revenues - in line with historical averages. 1996 1997 1998 1999 2000 2001 2002 Total US 16471 20501 21514 26417 32158 30082 18661 Y/Y Change 0.05 0.24 0.05 0.23 0.22 -0.06 -0.38 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 Lines 199 198.4648 198.1672 197.8804 197.26 196.3084 195.1552 194.1552 Y/Y -0.003 -0.005 -0.007 -0.008 -0.009 -0.011 -0.015 -0.019

IXCs TELECOM FUNDAMENTALS Heading into the Internet boom, long distance competitors, or interexchange carriers (IXCs) deployed over $200 billion in capital to lay some 60,000 route miles of new fiber. Following initial deregulation and entry of the first LD competitors (MCI et al.) LD prices plummeted. As the industry consolidated and demand ramped, prices recovered briefly before the entry of next-wave fiber competitors. The convergence of oversupply, contraction in demand and price erosion, led to the Chapter 11 filings of 360, Worldcom, Global Crossing, and Williams. Remaining players remain over-levered with respect to earnings prospects. 1996 1997 1998 1999 2000 2001 2002 Total US 19893 21381 27441 42225 57222 44220 16309 Y/Y Change 0.29 0.07 0.28 0.54 0.36 -0.23 -0.63 Interstate 1984 100 1985 97 1986 87.3 1987 76.9986 1988 75.3816294 1989 74.1001417 1990 74.02604156 1991 73.06370302 1992 73.79434005 1993 76.59852497 1994 81.27103499 1995 81.35230603 1996 81.92177217 1997 88.3116704 1998 87.95842372 1999 89.98146746 2000 86.11226436 2001 79.22328321 2002 75.26211905

CLECs From 1996, the year of the Telecommunications Act, to 2001, competitive local exchange carriers (CLECs) deployed $40 billion in capital expenditures. During that period CLECs raised over $50 billion in debt & Equity. At the end of 2000 34 CLECs were listed on the NASDAQ national market. CLEC revenues, which included local, long-distance, and data services grew to $12 billion in 2001, representing 5% of the total US Telecom services market. In 2001 and 2002 the majority of CLECs restructured or went out of business. Surviving entities have eliminated expansion, and have closed numerous networks. 1996 1997 1998 1999 2000 2001 2002E Total US 1024 1998 3811 6788 11394 5809 1718 Y/Y Change 1.23 0.95 0.91 0.78 0.68 -0.49 -0.7 1996 1997 1998 1999 2000 2001 2002E Revenue 2 3 5.5 8 10.4 12.3 5.08 Share 0.01 0.02 0.03 0.03 0.04 0.05 0.018 TELECOM FUNDAMENTALS

Information Technology Technology Fundamentals Market research firm IDC recently lowered its IT forecast for 2003 to 3.7% and lowered long-term growth expectations to 6.5% - 7% from its previous target of 8% to 9%. According to the monthly CIO Magazine survey, the IT spending outlook took a jump this year with firms reporting a 4.4% increase over the last 12 months - the first positive indicator since May 2002. Not surprisingly, network security remains a top concern for IT managers, with 53% of managers looking to spend more in that area. TTM FTM Mar 0.8 7.7 Apr -1.4 6 May 3.2 7.3 Jun 0.2 5.9 Jul 0.5 5.5 Aug -0.2 4.9 Sep -0.6 5.7 Oct -1.5 4.4 Nov -0.5 5.5 Dec -0.1 4.6 'Jan-03 4.4 5.2 'Feb -03 1.6 5.2 IT Services 31.4 Inf. Software 32.4 Telecom 34 e.business 38.7 Data Eqpt 40.3 Computers 41.7 Storage 45.8 Security 53.2

Customer Concentration With 56% of revenues derived from the telecom sector, Lexent's business is highly correlated to the downturn in that market. Lexent's corporate business, 29% of revenues, is also highly correlated with the IT spending slowdown. Top 5 customer accounted for 57% of revenues. The company's two largest customers are both telecoms and are both under financial pressure. Lexent Business Conditions 2002 Enterprise 0.291 Government 0.138 Real Estate 0.009 Telecom 0.561 2002 AT&T 0.23 Level 3 0.18 IBM 0.06 MCANN 0.05 Con Ed 0.0462 Worldcom 0.028 Other 0.41

Lexent Business Conditions In 2000, the company's best year, telecom accounted for 63% of revenues. Of the top six customers in 2000, four subsequently filed for chapter 11 protection

Lexent Business Conditions Fiber Networks Lexent's plan to build and operate a fiber ring in New York will likely meet stiff competition and very narrow margins. In addition to incumbent provider Verizon, seven competitors have already built fiber rings in New York. AT&T (through TCG) Espire Level 3 Metromedia (shown at right) Time Warner Telecom Worldcom (MFS) XO Communications

Lexent Growth Factors (in millions)

Section III Valuation Analysis

Comparable Company Analysis Comparable Companies: Dycom Industries, Inc. EMCOR Group, Inc. Integrated Electrical Services, Inc. MasTec, Inc. Quanta Services, Inc. Average multiples compare enterprise value with revenue, EBIT and EBITDA and market cap with book value. Lexent's negative operating earnings render a comparison on this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful.

Comparable Transaction Analysis Analysis of nine transactions since 2000. Most recent transactions involve the acquisition of assets out of bankruptcy. Average multiples compare total consideration with revenue, EBIT and EBITDA. Lexent's negative operating earnings render a comparison on this basis not meaningful. Premiums are based on a small sample size as only three of the targets were public companies. targets were public companies. targets were public companies. targets were public companies. targets were public companies. targets were public companies. targets were public companies. targets were public companies. targets were public companies. targets were public companies. targets were public companies. targets were public companies. targets were public companies. targets were public companies. targets were public companies.

Premiums Paid Analysis Small Cap - Deal values between $50 and $250 million Comparable Industry - Construction firms; telecom services; electricity, gas and water distribution Majority Shareholder Acquiror - Acquiror held 50% or more of the voting stock at announcement

Discounted Cash Flow Lexent's annual free cash flow was estimated for 2003- 2007 based on projections developed by Rodman with the Company's assistance. Terminal value in 2007 was calculated by applying a 6.0 multiple to 2007 EBITDA less the balance of the restructuring reserve and long-term incentive compensation. Rodman applied discount rates between 15% and 25%. The implied price is largely driven by Lexent's current cash position

Conclusion Based on the foregoing analysis, it is our conclusion that the transaction price of $1.50 per share in cash is fair, from a financial point of view to the stockholders of Lexent (other than the Management Group).

EX-99.C.2

FAIRNESS OPINION PRESENTATION