Sutter Capital starts tender for Allied Riser convertibles

New York, July 11 - Sutter Capital Management, LLC said it is offering to buy through affiliates all the outstanding 7.5% convertible subordinated notes due 2007 of Allied Riser Communications Corp., a subsidiary of Cogent Communications, Inc.

Sutter is offering to pay $80.00 per $1,000 principal amount of the notes.

In a filing with the Securities and Exchange Commission, Sutter said the notes are thinly traded but recent reported prices have been between $30.00 and $50.00 per note. Sutter added that on July 2 the company quoted it a price of $50.00 - so the tender offer represents a 60% premium to the most recently available information.

Sutter said it is making the tender for investment purposes and has no other intentions regarding the company.

As of March 31, 2003 there were $10.2 million face amount of the convertibles outstanding.

Sutter and affiliates currently own $300,000 face amount of the securities.

If Sutter acquires all the notes, it would be able to convert them into 21,318 shares of Cogent stock or 0.006% of the total.

The tender will be carried out through SCM Acquisition Fund, LLC.

San Francisco-based Sutter said it will fund the tender from available working capital.

The offer runs through 3.00 a.m. ET on August 16 unless extended.

Tender offer document is available at:

http://www.sec.gov/Archives/edgar/data/1091535/000101172303000061/sutteralliedtottender.txt

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