<Page>

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

================================================================================

                                    FORM 10-Q

                                   (MARK ONE)

           /X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
           SECURITIES EXCHANGE ACT OF 1934

                  FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2002
                                       OR

           / / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
           SECURITIES EXCHANGE ACT OF 1934

           FOR THE TRANSITION PERIOD FROM _________ TO _______________

                         COMMISSION FILE NUMBER 0-25957

================================================================================

                             BIZNESSONLINE.COM, INC.

             (Exact name of registrant as specified in its charter)

              DELAWARE                                  06-1519132
    (State or other jurisdiction                    (I.R.S. Employer
   incorporation or organization)                 of Identification No.)

                                  1720 ROUTE 34
                                  P.O. BOX 1347
                             WALL, NEW JERSEY 07719
                                 (732) 280-6408
                              (732) 280-6409 (FAX)

(Address and telephone number of principal executive offices and principal place
                  of business including zip code and area code)

                                      NONE
   (Former name, former address and former fiscal year, if changed since last
                                     report)

================================================================================

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes /X/ No / /

The number of shares outstanding of the Registrant's Common Stock as of August
10, 2002 was 10,897,130

<Page>

                             BIZNESSONLINE.COM, INC.
             FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2002

INDEX

<Table>
  <S>                                                                                       <C>
  Part I. - Financial Information

       Item 1.     Condensed Consolidated Balance Sheets as of June 30,
                     2002 (unaudited) and December 31, 2001                                  3

                   Condensed Consolidated Statements of Operations for the
                     Three and Six Months Ended June 30, 2002 and 2001 (unaudited)           4

                   Condensed Consolidated Statements of Cash Flows for the Six
                     Months Ended June 30, 2002 and 2001 (unaudited)                         5

                   Condensed Consolidated Statements of Stockholders' Deficit for the
                     Six Months Ended June 30, 2002 (unaudited)                              6

                   Notes to Unaudited Condensed Consolidated Financial Statements            7

       Item 2.     Management's Discussion and Analysis of Financial Condition
                     and Results of Operations                                               8

       Item 3.     Quantitative and Qualitative Disclosure About Market Risk                12

  Part II. - Other Information                                                              13

       Item 2. Changes in Securities                                                        13

       Item 4. Submission of Matters to a Vote of Securities Holders                        13

       Item 6. Exhibits and Reports on Form 8-K                                             13

  Signature                                                                                 15

  Exhibit Index
</Table>

<Page>

                         PART I - FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                             BIZNESSONLINE.COM, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (IN THOUSANDS)

<Table>
<Caption>
                                                              June 30,    December 31,
                                                                2002          2001
                                                             -----------  ------------
                                                             (UNAUDITED)
<S>                                                          <C>          <C>
ASSETS
Current assets:
     Cash and cash equivalents                               $       937  $      1,008
     Accounts receivable, net of allowance for bad debts of
          $1,799 in 2002 and $1,783 in 2001                        2,312         2,951
     Prepaid and other current assets                                280           166
                                                             -----------  ------------

Total current assets                                               3,529         4,125

     Property and equipment, net                                   1,966         3,114
     Other assets                                                    152           378
                                                             -----------  ------------

Total assets                                                 $     5,647  $      7,617
                                                             ===========  ============

LIABILITES, REDEEMABLE PREFERRED STOCK AND
  STOCKHOLDERS' DEFICIT
Current liabilities:
     Current portion of obligations under capital leases     $       434  $        211
     Accounts payable                                              2,804         3,477
     Income tax payable                                               84            44
     Accrued expenses                                              1,973         1,562
     Accrued restructuring expenses                                  482           619
     Deferred revenue                                              1,266         1,761
                                                             -----------  ------------

Total current liabilities                                          7,043         7,674

Long term debt                                                    13,803        13,500
Capital leases, net of current portion                                 -           227
                                                             -----------  ------------

Total liabilities                                                 20,846        21,401

Commitments and contingencies

Redeemable preferred stock, including accrued dividends            5,300         5,000

Stockholders' deficit:
     Preferred stock                                                   -             -
     Common stock                                                    109           108
     Additional paid in capital                                   56,115        56,413
     Accumulated deficit                                         (76,723)      (75,305)
                                                             -----------  ------------

Total stockholders' deficit                                      (20,499)      (18,784)
                                                             ===========  ============

Total liabilities, redeemable preferred stock and
  Stockholders' deficit                                      $     5,647  $      7,617
                                                             ===========  ============
</Table>

See accompanying notes to unaudited condensed consolidated financial statements.

<Page>

                             BIZNESSONLINE.COM, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
                      (IN THOUSANDS, EXCEPT PER SHARE DATA)

<Table>
<Caption>
                                              Three Months Ended       Six Months Ended
                                                    June 30                 June 30
                                             --------------------    --------------------
                                               2002        2001        2002        2001
                                             --------    --------    --------   ---------
<S>                                          <C>         <C>         <C>        <C>
Revenues                                     $  4,171    $  6,194    $  9,081   $  13,253

Costs and expenses:
     Connectivity and operations                2,542       4,905       5,981       9,891
     Sales and marketing                          520         851         981       1,622
     General and administrative                 1,026         845       1,720       2,032
     Depreciation                                 566         649       1,152       1,294
     Amortization                                   -       1,453           -       2,901
                                             --------    --------    --------   ---------
Total costs and expenses                        4,654       8,703       9,834      17,740
                                             --------    --------    --------   ---------

Loss from operations                             (483)     (2,509)       (753)     (4,487)

Other income                                      108           -          99           -
Interest expense, net                            (325)     (1,131)       (764)     (6,548)
                                             --------    --------    --------   ---------
Loss before income taxes                         (700)     (3,640)     (1,418)    (11,035)

Income taxes                                        -          21           -          24
                                             --------    --------    --------   ---------

Net loss                                     $   (700)   $ (3,661)   $ (1,418)  $ (11,059)
                                             --------    --------    --------   ---------

Dividend on redeemable preferred stock           (150)          -        (300)          -

Loss applicable to common stock              $   (850)   $ (3,661)   $ (1,718)  $ (11,059)

Net loss per share, attributable to common
     stock, basic and diluted                $  (0.08)   $  (0.37)   $  (0.16)  $   (1.12)
Weighted average shares outstanding, basic
     and diluted                               10,831       9,967      10,828       9,875
</Table>

See accompanying notes to unaudited condensed consolidated financial statements.

<Page>

                             BIZNESSONLINE.COM, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                                 (IN THOUSANDS)

<Table>
<Caption>
                                                                            Six Months Ended
                                                                                June 30
                                                                            2002        2001
                                                                          --------    ---------
<S>                                                                       <C>         <C>
  Net loss                                                                $ (1,418)   $ (11,059)

Adjustments to reconcile net loss to cash used in operating activities:
  Depreciation and amortization                                              1,152        8,695
  Amortization of debt warrants                                                  -          390
  Allowance for bad debt                                                       445          856
  Changes in net assets and liabilities:
     Change in accounts receivable-trade                                       195         (524)
     Change in other current assets                                           (114)         697
     Decrease in accounts payable                                             (672)         (44)
     Increase in accrued expenses                                              412            2
     Change in income taxes payable                                             40          (37)
     Decrease in accrued restructuring charge                                 (137)           -
     Change in other assets                                                    226          (47)
     Change in deferred revenue                                               (495)         418
                                                                          --------    ---------
         Net cash used in operating activities                                (366)        (653)

Cash flows from investing activities:
  Capital expenditures                                                         (15)        (120)
  Proceeds from disposal of capital equipment                                   11            -
                                                                          --------    ---------
         Net cash (used in) investing activities                                (4)        (120)

Cash flows from financing activities:
  Repayments of capital lease obligations                                       (4)        (101)
  Proceeds from issuance of long term debt                                     303        1,200
                                                                          --------    ---------
         Net cash provided by financing activities                             299        1,099

Net change in cash                                                             (71)         326
Cash at beginning of period                                                  1,008          687
                                                                          --------    ---------
Cash at end of period                                                     $    937    $   1,013
                                                                          ========    =========
Cash paid for interest                                                    $    315    $   1,361
Income taxes (refunded) paid                                              $    (50)   $      62
Non-cash investing and financing
    Issuance of common stock for acquisitions                             $      -    $     124
    Issuance of common stock for bonuses                                  $      3    $       -
Redeemable preferred stock dividend                                       $    300    $       -
</Table>

See accompanying notes to unaudited condensed consolidated financial statements.

<Page>

                             BIZNESSONLINE.COM, INC.
           CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT
                                   (UNAUDITED)
                   (IN THOUSANDS, EXCEPT SHARE AND SHARE DATA)
                         Six Months Ended June 30, 2002

<Table>
<Caption>
                                        Common Stock         Preferred Stock                                           Total
                                    -------------------    --------------------     Additional       Accumulated    Stockholders'
                                      Shares     Amount    Shares      Amount     Paid in Capital      Deficit        Deficit
                                    ----------   ------    ------    ----------   ---------------   -------------   ------------
<S>                                 <C>          <C>            <C>  <C>          <C>               <C>             <C>
Balance December 31, 2001           10,826,538   $  108         -    $        -   $        56,413   $     (75,305)  $    (18,784)

Dividends on redeemable
    preferred stock                          -        -         -             -              (300)              -           (300)

Issuance of common stock for
    employee services                   70,592        1         -             -                 2               -              3

Net loss                                     -        -         -             -                 -          (1,418)        (1,418)
                                    ----------   ------    ------    ----------   ---------------   -------------   ------------
Balance June 30, 2002               10,897,530   $  109         -    $        -   $        56,115   $     (76,723)  $    (20,499)
                                    ==========   ======    ======    ==========   ===============   =============   ============
</Table>

See accompanying notes to unaudited condensed consolidated financial statements.

<Page>

                             BiznessOnline.com, Inc.
         Notes to Unaudited Condensed Consolidated Financial Statements

     1) Basis of Presentation

     The accompanying condensed consolidated financial statements include the
accounts of BiznessOnline.com, Inc. and its wholly owned subsidiaries
(hereinafter collectively referred to as the "Company", "we", "our", or "us").
We derive revenue from providing enhanced Internet services, including server
co-location, Web design and e-commerce solutions, Web hosting, high speed
Internet access and dial-up Internet access. We also resell local and long
distance telephone service in New York as part of a package of services to our
customers. The financial statements have been prepared pursuant to the rules and
regulations of the Securities and Exchange Commission for interim financial
information, including the instructions to Form 10-Q and rule 10-01 of
Regulation S-X. Accordingly, certain information and footnote disclosures
normally required in complete financial statements prepared in accordance with
accounting principles generally accepted in the United States of America have
been condensed or omitted. In the opinion of management these financial
statements include all adjustments necessary for a fair presentation of the
results of operations for the interim periods presented. Results of operations
for interim periods are not necessarily indicative of the results that may be
expected for the year ended December 31, 2002.

     2) Debt and Funding of Operations

     a) Debt

     On March 16, 2000, we closed a $15 million senior secured credit facility
from MCG Finance Corporation, our senior lender. On December 13, 2000 we amended
the facility to increase the amount to $17 million and amended certain of the
covenants. On December 31, 2001, we amended the facility again. On December 31,
2001, the lender converted $5 million of principal into 50,000 shares of senior
preferred stock. The senior preferred stock represents 45% of the voting power
of the combined class consisting of senior preferred stock and common stock. The
lender also added past due interest of $1.5 million to the principal amount. The
credit facility, which is now approximately $14.25 million, was also increased
by an additional $750,000 and certain of the covenants were amended. The credit
facility is secured by all of our assets.

     Under the amended MCG credit facility, the principal amount of the
indebtedness is to be repaid using the following schedule:

        May 2003, August 2003, November 2003,    50% of excess cash flow for the
          February 2004 and May 2004               preceding quarter

        June 30, 2004                            remaining principal

     As of June 30, 2002, we were not in compliance with the requirements under
our $14.25 million senior credit facility. However, we have received a waiver
from MCG of our non-compliance. In the future we may continue to not be in
compliance with the financial covenants. If we were to be in default and if the
default is not cured, or waived by our lender, the lender could seek remedies
against us, including penalty rates of interest, immediate repayment of the
debt, redemption of our redeemable preferred stock, and/or foreclosure on our
assets securing the debt. If we become insolvent or enter into a liquidation
proceeding, after payment to our creditors, there are likely to be
insufficient assets remaining for any distribution to shareholders.

     In connection with the MCG credit facility, we have paid certain cash fees
and issued 761,757 shares of common stock to MCG and/or its affiliates. In
addition, we have issued common stock purchase warrants to MCG and/or its
affiliates exercisable for 10,124,384 shares of common stock at an exercise
price of $0.01 per share, subject to certain anti-dilution and other
adjustments. The shares of common stock acquired upon exercise of the MCG
warrants, together with the senior preferred stock issued to MCG, represent 45%
of the voting power of the combined class consisting of senior preferred stock
and common stock. Any warrants previously granted to MCG or its affiliates were
cancelled effective December 31, 2001.

     b) Going Concern

     Our existing cash and cash equivalents, additional borrowings available to
us under our debt agreement and cash that may be generated from operations are
expected to be sufficient to meet our anticipated cash needs for 2002. In order
to continue operations and comply with our debt service requirements beyond
2002, including our restrictive covenants, we may require an additional capital
infusion and/or we may need to again restructure our existing debt. In the event
we violate the restrictive covenants our lender could seek remedies against us,
including immediate repayment of the debt and/or foreclosure on our assets
securing the debt. In view of the relatively tight capital markets that we have
experienced over the past 18 - 24 months, we can

<Page>

provide no assurance that additional capital will be available to us to fund our
cash requirements including interest payments on our senior debt for this year
or thereafter or if we violate our covenants, that we will be able to further
restructure our existing debt.

     3) Implementation of Recent Accounting Pronouncements

     In July 2001, the Financial Accounting Standards Board finalized
Statement of Financial Accounting Standards No. 142, Goodwill and Other
Intangible Assets. Statement 142 is required to be applied in fiscal years
beginning after December 15, 2001 to all goodwill and other intangible assets
recognized at that date, regardless of when those assets were initially
recognized. We adopted Statement 142 on January 1, 2002. The adoption of
this statement did not have a material impact on our financial position or
results of operations since all acquisition related goodwill and intangibles
were impaired and written off prior to the adoption of this statement as
discussed below. The table below presents the required disclosure of results
of operations had the Company not been required to amortize goodwill in
periods prior to the write-off.

     In September 30, 2001 we wrote down the carrying value of our goodwill
by $5.4 million to zero. The write down was a result of a decline in revenue
in the third quarter and due to a breakdown of negotiations on a potential
sale of the Company in the third quarter 2001, we evaluated a number of
factors in coming to the decision that the goodwill had become impaired. The
factors evaluated included the discounted cash flows to be received from the
operations of the Company, including proceeds from the potential sale of the
Company along with comparing the purchase price paid, as a multiple of
revenue, and comparing that multiple to current comparable multiples. We also
evaluated recent merger and acquisition activity in order to determine the
current net realizable value of goodwill. As our business has not improved
and the market for companies in our sector continues to show declines in
value, we conducted this discounted cash flows analysis and concluded that
additional goodwill impairment charge was required. Based on our analysis, we
wrote off the remaining goodwill, but concluded that future cash flows and
asset values were sufficient to support the current carrying value of our
other long-lived assets.

     Amortization expense and net income of the Company is as follows:

<TABLE>
                                                    For the year ended
                                 June                   December 31,
                                 2002              2001               2000
------------------------------------------------------------------------------
<S>                              <C>               <C>                <C>
Net loss                         (1,418)           (21,920)           (49,204)
------------------------------------------------------------------------------
Add back: Goodwill                --                 4,354              9,322
Amortization
------------------------------------------------------------------------------
Adjusted Net Income              (1,418)           (17,566)           (39,882)
------------------------------------------------------------------------------

------------------------------------------------------------------------------
Basic and diluted earnings
per share
------------------------------------------------------------------------------
Net loss                          (0.16)             (2.13)             (5.36)
------------------------------------------------------------------------------
Goodwill amortization              --                  .42               1.01
------------------------------------------------------------------------------
Adjusted net income               (0.16)             (1.71)             (4.35)
------------------------------------------------------------------------------
</TABLE>

     4) Litigation

     From time-to-time the Company is subject to legal proceedings and claims in
the ordinary course of business. The Company currently is not aware of any such
legal proceedings or claims that it believes will have, individually or in the
aggregate, a material adverse effect on its business, financial condition, or
operating results.

     5) Subsequent Event

     As disclosed in a press release issued August 2, 2002, our Chief Executive
Officer has resigned his officer positions with the Company effective August 2,
2002. He may continue as a member of the Board until December 31, 2002. A new
Chief Executive Officer, Ken Baritz, was appointed. Mr. Baritz also assumed the
position of Chairman of the Board. In addition to Mr. Baritz, Michael E. Burman
and Ronald W. Gavillet joined the Company's Board of Directors.

     We have entered into a severance agreement with our former Chief Executive
Officer under which he will receive a $175,000 severance payment and receive
$75,000 for consulting services. Also, our Chief Financial Officer has resigned
effective September 2, 2002. He will receive a $150,000 severance payment and an
additional $75,000 for consulting services. Under each of the severance
agreements, the former employees have agreed to non-competition and
non-solicitation provisions for a twelve-month period following his respective
resignation of employment and any directorships held with the Company. The
parties also agreed to a mutual release of claims.

     ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
             RESULTS OF OPERATIONS

          This filing contains forward looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Those statements reflect the
intent, belief or current expectations of BiznessOnline.com, Inc. and members of
its management team. Prospective investors and stockholders are cautioned that
any forward-looking statements are not guarantees of future performance, and
involve uncertainties, and that actual results may differ materially from those
contemplated by the forward-looking statements as a result of, among other
things, reflecting changed assumptions or the occurrence of unanticipated events
or changes to future operating results over time.

     Introduction

     The following discussion of results of operations and of the liquidity and
capital resources of BiznessOnline.com, Inc. should be read in conjunction with
our unaudited condensed consolidated financial statements and the related notes
thereto appearing in this filing on Form 10-Q.

OVERVIEW

We derive revenues from a variety of sources. We provide web site development,
e-commerce solutions and Internet marketing/web media services. These services
are predominantly utilized by small to medium sized businesses looking to
establish a presence on the World Wide Web. We host commercial and individual
web sites. We also provide our customers with server co-location and managed
services from our state-of-the-art Internet data center located in Albany, New
York. We also provide Internet access via dedicated high-speed broadband
products such as DSL, Frame relay, T-1 and T-3 connections along with dial up
connectivity. Our customers are individuals and small to medium sized
businesses. Subscription fees for dial up connectivity vary between $9.95 and
$24.95 per month among our Internet service providers and by the billing plans
for a particular Internet service provider. We also provide local dial tone,
long distance services, cellular services and paging services. Many of our
individual subscribers pay us by credit card automatically on a monthly basis.
Our revenue composition may change as we develop our strategy to provide
additional e-commerce and other enhanced IP services to our clients.

RESULTS OF OPERATIONS

THREE MONTHS ENDED JUNE 30, 2002 COMPARED TO THREE MONTHS ENDED JUNE 30, 2001

<Page>

We recorded revenue of $4.2 million during the quarter, a decrease of $2.0
million, or 32%, from $6.2 million in the second quarter of 2001. We experienced
revenue declines in each product and market. The decline was partially a result
of a weakening in the economy resulting in less usage of our products. Also,
there was a decline in our ability to attract new customers due to the
uncertainty about our ability to continue operations and the trend of customers
retaining the services of larger competitors. Additionally, our dialup Internet
customer base in Connecticut was sold in August 2001 resulting in a $.6 million
sales decrease in the second quarter of 2002, compared to 2001.

The following table provides a comparison of connectivity and operations, sales
and marketing, and general and administrative expenses as a percentage of
revenues:

<Table>
<Caption>
                                         QUARTER ENDED
                                            JUNE 30
                                         2002      2001
                                         ----      ----
<S>                                      <C>       <C>
Connectivity and operations              61.0%     79.2%
Sales and marketing                      12.5%     13.7%
General and administrative               24.6%     13.6%
</Table>

Connectivity and operations expenses decreased $ 2.3 million, from $4.9 million
to $2.6 million. The decrease was primarily a result of the consolidations of
services and operating centers provided upon completion of acquisitions we
completed during the first half of 2000 and to a lower volume of sales. This
consolidation was substantially completed in the second half of 2001.

Sales and marketing expenses decreased $.3 million, from $.8 million to $.5
million. The decrease is primarily attributable to less advertising and less
sales personnel during 2002 as a result of cost saving actions taken to improve
our operating results.

General and administrative expenses increased $.2 million, from $.8 million to
$1.0 million.

Depreciation expense remained at $.6 million.

Amortization expense decreased $1.4 million, from $1.4 million to $0. The
decrease was a result of the write down of goodwill, which occurred in the
fourth quarter of 2000 and in the third quarter of 2001.

Interest expense, net was $.3 million for the quarter ended June 30, 2002, as
compared to interest expense, net of $1.1 million during the same period of
2001. The difference was primarily a result of a lower outstanding debt and
lower interest rate during 2002 as compared to the second quarter of 2001.

Net loss applicable to common shares for the quarter ended June 30, 2002 was $.8
million, or $0.08 per share, as compared to $3.7 million, or $0.37 per share
during 2001.

SIX MONTHS ENDED JUNE 30, 2002 COMPARED TO SIX MONTHS ENDED JUNE 30, 2001

We recorded revenue of $9.1 million during the first six months of 2002, a
decrease of $4.2 million, or 32%, from $13.3 million in the first half of 2001.
We experienced revenue declines in each product and market. The decline was
partially a result of a weakening in the economy resulting in less usage of our
products. Also, there was a decline in our ability to attract new customers due
to the uncertainty about our ability to continue operations and the trend of
customers retaining the services of larger competitors. Additionally, our dialup
Internet customer base in Connecticut was sold in August 2001 resulting in a
$1.2 million decrease in sales in the first half of 2002, compared to 2001.

The following table provides a comparison of connectivity and operations, sales
and marketing and general and administrative expenses as a percentage of
revenues:

<Table>
<Caption>
                                         Six Months Ended
                                             June 30
                                         ----------------
                                         2002        2001
                                         ----        ----
     <S>                                 <C>         <C>
     Connectivity and operations         65.9%       74.6%
     Sales and marketing                 10.8%       12.2%
     General and administrative          18.9%       15.3%
</Table>

Connectivity and operations expenses decreased $3.9 million, from $9.9 million
to $6.0 million. The decrease was primarily a result of the consolidations of
services and operating centers provided upon completion of acquisitions we
completed during the first half of 2000 and to a lower volume of sales.

Sales and marketing expenses decreased $.6 million, from $1.6 million to $1.0
million. The decrease is primarily attributable to less advertising and less
sales personnel during 2002 as a result of cost saving actions taken to improve
our operating results.

<Page>

General and administrative expenses decreased $.3 million, from $2.0 million to
$1.7 million. The decrease was primarily a result of the consolidations of
services and operating centers provided upon completion of acquisitions we
completed during the first half of 2000.

Depreciation expense decreased $.1 million, from $1.3 million to $1.2 million.

Amortization expense decreased $2.9 million, from $2.9 million to $0. The
decrease was a result of the write down of goodwill, which occurred in the
fourth quarter of 2000 and in the third quarter of 2001. Unless we acquire
additional intangible assets, there will be no amortization in future years.

Interest expense, net was $.8 million for the six months ended June 30, 2002, as
compared to interest expense, net of $6.5 million during the same period of
2001. The difference was primarily a result of a lower outstanding debt and
lower interest rate during 2002 as compared to the first six months of 2001
along with the expensing of the remaining discount on the debt of $4.3 million.

Net loss applicable to common shares for the six months ended June 30, 2002 was
$1.7 million, or $0.16 per share, as compared to $11.1 million, or $1.12 per
share during 2001.

LIQUIDITY AND CAPITAL RESOURCES

At June 30, 2002, we had $0.9 million of cash and cash equivalents, a decrease
of $0.1 million from December 31, 2001. Net cash used by operating activities
was $.3 million, primarily as a result of the net loss for the period. Net cash
provided by investing activities was $4 thousand. Net cash provided by financing
activities was $.3 million, primarily as a result of additional borrowings under
our senior secured credit facility with MCG Finance Corporation.

As of June 30, 2002, we were not in compliance with the requirements under
our $14.25 million senior credit facility. However, we have received a waiver
and agreement from MCG permanently waiving any defaults created thereby for
the period and allowing us to remain in compliance. In the future, we may not
be in compliance with the financial covenants. If we were to be in default
and if the default is not cured, or waived by our lender, the lender could
seek remedies against us, including penalty rates of interest, immediate
repayment of the debt, redemption of our redeemable preferred stock, and/or
foreclosure on our assets securing the debt. If we become insolvent or enter
into a liquidation proceeding, after payment to our creditors, there are
likely to be insufficient assets remaining for any distribution to
shareholders.

We believe that our available cash, additional borrowings available to us under
our debt agreement and cash flow from operations may not be sufficient to fund
our operations, and service our debt requirements beyond 2002, or give us the
ability to acquire Internet service providers and telecommunications companies
in accordance with our historical growth strategy without a comprehensive plan
to address our operating deficit and our capital needs. Towards that end, we
have taken a number of steps to reduce our costs and expenses, as follows:

     -    We have closed offices which we no longer needed and reduced personnel
          expenses accordingly
     -    We have evaluated each of our product lines and our gross margin per
          customer and have eliminated products, customers or markets that were
          not profitable.

Our existing cash and cash equivalents, additional borrowings available to us
under our debt agreement and cash that may be generated from operations are
expected to be sufficient to meet our anticipated cash needs for 2002. In
order to continue operations and comply with our debt service requirements
beyond 2002, including our restrictive covenants, we may require an
additional capital infusion and/or we may need to again restructure our
existing debt. In the event we violate the restrictive covenants our lender
could seek remedies against us, including penalty rates of interest,
immediate repayment of the debt, redemption of our redeemable preferred
stock, and/or foreclosure on our assets securing the debt. In view of the
relatively tight capital markets that we have experienced over the past 18 -
24 months, we can provide no assurance that additional capital will be
available to us to fund our cash requirements including interest payments on
our senior debt for this year or thereafter or if we violate our covenants,
that we will be able to further restructure our existing debt.

Investors in our securities should consider the risk that we may be required to
cease operations during the year or thereafter, particularly if we are
unsuccessful in acquiring a capital infusion, restructuring our debt or
completing a strategic transaction, in which case our common stock may have no
value. All statements set forth in this Form 10-Q are qualified by reference to
those facts.

NASDAQ DELISTING AND LIQUIDITY OF COMMON STOCK

On August 4, 2000, NASDAQ informed us that we had failed to comply with
continued listing requirements and commenced an action to delist our common
stock from the National Market System. We appealed the decision and requested an
extension of time to comply with the National Market standards. NASDAQ denied
our appeal and effective October 2, 2000 our common stock was

<Page>

delisted from the NASDAQ National Market. Our stock immediately began trading on
the over-the-counter electronic bulletin board sponsored by NASDAQ. The
delisting of our common stock may result in limited release of the market price
of the common stock and limited news coverage of our company and could restrict
investors' interest in the common stock and materially adversely affect the
trading market and prices for our common stock and our ability to issue
additional securities or to secure additional financing. In addition, our common
stock could be subject to Rule 15g-9 under the Securities Exchange Act of 1934
which, among other things, requires that broker/dealers satisfy special sales
practice requirements, including making individualized written suitability
determinations and receiving a purchaser's written consent prior to any
transaction. In such case, our common stock could also be deemed to be a "penny
stock" under the Securities Enforcement and Penny Stock Reform Act of 1990,
which would require additional disclosure in connection with trades in the
common stock, including the delivery of a disclosure schedule explaining the
nature and risks of the penny stock market. Such requirements could severely
limit the liquidity of our common stock.

EFFECTS OF INFLATION

We do not believe that inflation has had a material impact on our results of
operations during the three months ended June 30, 2002.

MATTERS INVOLVING SENIOR DEBT

On December 31, 2001, our lender converted $5 million of principal of the
original $17 million credit facility into 50,000 shares of senior preferred
stock. The senior preferred stock represents 45% of the voting power of the
combined class consisting of senior preferred stock and common stock. Our lender
also added past due interest of $1.5 million to the principal amount. The credit
facility was also increased by an additional $750,000 of which we have borrowed
approximately $300,000 as of June 30, 2002, and some of the covenants were
amended. The credit facility, which is now approximately $14.25 million, of
which approximately $13.8 million was outstanding as of June 30, 2002, is
secured by all of our assets. During 2001, our lender received 690,328 shares of
common stock, warrants to purchase 717,093 at $0.01 per share, 375,487 shares at
$0.507025 per share, and 659,775 shares at $0.01 per share, subject to certain
anti-dilution and other adjustments. In connection with the December 31, 2001
amendment, we granted the lender a warrant to purchase 10,124,384 shares of
common stock at an exercise price of $0.01 per share, subject to certain
anti-dilution and other adjustments and all other warrants were cancelled. The
shares of common stock acquirable upon exercise of the lender's warrants,
together with the senior preferred stock issued to the lender, represents 45% of
the voting power of the combined class consisting of senior preferred stock and
common stock.

As of June 30, 2002, we were not in compliance with the requirements under
our $14.25 million senior credit facility. However, we have received a waiver
and agreement from MCG permanently waiving any defaults created thereby for
the period and allowing us to remain in compliance. In the future we may not
be in compliance with the financial covenants. If we were to be in default
and if the default is not cured, or waived by our lender, the lender could
seek remedies against us, including penalty rates of interest, immediate
repayment of the debt, redemption of our redeemable preferred stock, and/or
foreclosure on our assets securing the debt. If we become insolvent or enter
into a liquidation proceeding, after payment to our creditors, there is
likely to be insufficient assets remaining for any distribution to
shareholders.

CRITICAL ACCOUNTING POLICIES AND JUDGMENTS

Certain of our critical accounting policies and judgments are of a recurring
nature, such as those for revenue recognition and allowance for doubtful
accounts receivable, and others are of a nonrecurring nature, such as those for
the impairment assessments. Each of these critical areas is addressed below.

IMPAIRMENT OF LONG-LIVED ASSETS

Long-lived assets are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be
recoverable. If such assets are considered to be impaired, the impairment to be
recognized is measured by the amount by which the carrying amount of the assets
exceeds the net discounted cash flow to be generated by the assets.

REVENUE RECOGNITION

We recognize revenue when services are provided. Services for Internet access,
web hosting and server co-location are generally billed in advance. Advance
billings are recorded as deferred revenue and recognized as revenue when earned
over the period of service.

Local and long distance telephone service, E-commerce solutions and wholesale
services revenue are recognized in the period that the services were provided to
the customer. Web site development is recognized in the period in which the work
is completed and delivered to the customer.

<Page>

ACCOUNTS RECEIVABLE

We regularly review the adequacy of our accounts receivable allowance after
considering the size of the accounts receivable aging, the age of each invoice,
each customer's expected ability to pay and our collection history with each
customer. We review any invoice greater than 60 days past due to determine if an
allowance is appropriate based on the risk category using the factors discussed
above. In addition, we maintain a general reserve for all invoices by applying a
percentage based on the age category. The allowance for doubtful accounts
represents our best estimate, but changes in circumstances relating to accounts
receivable may result in a requirement for additional allowances in the near
future.

RECENT ACCOUNTING PRONOUNCEMENTS

In October 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 144, ACCOUNTING FOR THE IMPAIRMENT OR
DISPOSAL OF LONG-LIVED ASSETS, which addresses financial accounting and
reporting for the impairment or disposal of long-lived assets. We adopted
Statement 144 on January 1, 2002. The adoption of this Statement did not have a
material impact on our consolidated financial position or results of operations.

In August 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 143, ACCOUNTING FOR ASSET RETIREMENT
OBLIGATIONS, which addresses financial accounting and reporting for obligations
associated with the retirement of tangible long-lived assets and the associated
asset retirement costs. This Statement is effective for fiscal years beginning
after June 15, 2002. We adopted Statement 143 on January 1, 2002. The adoption
of this Statement did not have a material impact on our consolidated financial
position or results of operations.

In June 2001, the Financial Accounting Standards Board issued Statements of
Financial Accounting Standards No. 141, BUSINESS COMBINATIONS, and No. 142,
GOODWILL AND OTHER INTANGIBLE ASSETS. Statement 141 requires the use of the
purchase method of accounting for business combinations initiated after June 30,
2001. Statement 141 also specifies the criteria that intangible assets acquired
in a purchase method business combination must meet in order to be recognized
and reported apart from goodwill. We adopted Statement 141 on July 1, 2001.
Statement 142 requires that companies no longer amortize goodwill, but instead
test goodwill impairment at least annually (or more frequently if impairment
indicators arise). Statement 142 is required to be applied in fiscal years
beginning after December 15, 2001 to all goodwill and other intangible assets
recognized at that date, regardless of when those assets were initially
recognized. Statement 142 requires companies to complete a transitional goodwill
impairment test six months from the date of adoption and to reassess the useful
lives of other intangible assets within the first interim quarter after the
adoption of Statement 142. We adopted Statement 142 on January 1, 2002. As of
December 31, 2001 the carrying value of goodwill had been written down to $0.

In April 2002, the Financial Accounting Standards Board issued Statements of
Financial Accounting Standards No. 145, "Rescission of FASB Statements No. 4,
44, and 64, Amendment of FASB Statement No. 13 and Technical Corrections,"
effective for fiscal years beginning May 15, 2002 or later that rescinds FASB
Statement No. 4, Reporting Gains and Losses from Extinguishment of Debt, FASB
Statement No. 64, Extinguishment of Debt Made to Satisfy Sinking-Fund
Requirements, and FASB Statement No. 44, Accounting for Intangible Assets of
Motor Carriers. This Statement amends FASB Statement No. 4 and FASB Statement
No. 13, Accounting for Leases, to eliminate an inconsistency between the
required accounting for sale-leaseback transactions. This Statement also amends
other existing authoritative pronouncements to make various technical
corrections, clarify meanings, or describe their applicability under changed
conditions. We do not believe the impact of adopting SFAS No. 145 will have a
material impact on our financial statements.

In July 2002 the Financial Accounting Standards Board issued Statements of
Financial Accounting Standards No. 146, Accounting for Costs Associated with
Exit or Disposal Activities. The standard requires companies to recognize costs
associated with exit or disposal activities when they are incurred rather than
at the date of a commitment to an exit or disposal plan. Examples of costs
covered by the standard include lease termination costs and certain employee
severance costs that are associated with a restructuring, discontinued
operation, plant closing, or other exit or disposal activity.

Previous accounting guidance was provided by EITF Issue 94-3, "Liability
Recognition for Certain Employee Termination Benefits and Other costs to Exit an
Activity (including Certain Costs Incurred in a Restructuring)". Statement 146
replaces Issue 94-3. Statement 146 is to be applied prospectively to exit or
disposal activities initiated after December 31, 2002. We do not believe the
impact of adopting SFAS No. 146 will have a material impact on our financial
statements.

ITEM 3. QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK

We provide Internet access and related services to individuals and small to
medium sized businesses in northeastern New York State, Massachusetts and
Connecticut. We are not subject to changes in foreign currency exchange rates or
weak economic conditions in foreign markets. Our interest income is subject to
changes in the general level of U.S. interest rates, particularly since the
majority of our investments are in short-term instruments. Due to the nature of
our short-term investments, we have concluded that there is no material market
risk exposure. Therefore, no quantitative tabular disclosures are required.

<Page>

Our investment policy requires us to invest funds in excess of current operating
requirements in obligations of the U.S. government and its agencies and
investment grade obligations of state and local governments and U.S.
corporations.

                           PART II. OTHER INFORMATION

ITEM 2. CHANGES IN SECURITIES

          On June 24, 2002, the Company issued 70,592 shares of its common stock
to two former employees as bonus compensation pursuant to their employment
agreements with the Company. Said employees were former owners and founders of a
company we acquired in 1999 pursuant to a merger agreement in which we issued
stock to such persons as part of the acquisition price. Said issuances were made
in transactions not involving a public offering without registration under the
Securities Act of 1933 in reliance upon the exemption from registration set
forth in Section 4(2) of the Act. Each person acknowledged and represented to
the Company in writing that such person understood and agreed that the shares of
common stock to be issued in such transactions would not be registered under
the Securities Act of 1933; would be acquired solely for their own account
without any present intention of resale or distribution; and could not be resold
without registration under the Securities Act of 1933 or in compliance with an
available exemption from registration. Each person also acknowledged that such
person was able to bear the economic risk of an investment in the common stock
and could afford a complete loss of such investment, and that such person had
the opportunity to ask questions of and receive answers from the Company's
management concerning any and all matters relating to the acquisition of the
common stock of the Company.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

At BiznessOnline.com, Inc.'s Annual Meeting of Stockholders held June 8, 2002,
the following proposals were adopted by the margins indicated.

     1.   Election of a Board of Directors to serve until the next Annual
          Meeting of Stockholders and until their successors are elected and
          qualified.

<Table>
<Caption>
     Nominee Director                  For            Withheld
     ----------------                ---------        ---------
     <S>                             <C>              <C>
     Mark E. Munro                   6,022,636        1,010,568
     S. Keith London                 6,022,886        1,010,318
     John B. Fraser                  6,023,436        1,009,768
</Table>

     2. Approval of the BiznessOnline.com, Inc. 2002 Stock Plan.

<Table>
<Caption>
     Shares For            Shares Against            Abstain           Not Voted
     ----------            --------------            -------           ---------
      <S>                       <C>                   <C>              <C>
      3,437,725                 1,233,773             22,077           2,339,629
</Table>

          The representative of the holders of all of our outstanding senior
preferred stock was present at the meeting thereby establishing a quorum but did
not take any action with respect to the proposals; and therefore, all of the
shares of our senior preferred stock were treated as non-votes.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

        (a) Exhibits:

            10.43* Third Amendment to Employment Agreement between the Company
               and Daniel J. Sullivan, dated as of June 1, 2002

            10.44* Severance and Mutual Release Agreement between the Company
               and Daniel J. Sullivan, dated as of August 2, 2002

<Page>

            10.45* Severance and Mutual Release Agreement between the Company
               and Mark E. Munro, dated August 2, 2002

            11 Statement re Computation of Per Share Earnings

            99.1 Certification pursuant to 18 U.S.C. Section 1350 as adopted
               pursuant to section 906 of the Sarbanes-Oxley Act of 2002

* Management contract or compensatory plan or arrangement

        (b) Reports on Form 8-K:

            None

<Page>

                                    SIGNATURE

Pursuant to the requirements of the Securities Act, the Registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

Dated: August 14, 2002              BiznessOnline.com, Inc.


                              By    /s/Daniel J. Sullivan
                                 --------------------------------------------
                                 Daniel J. Sullivan
                                 Vice President and Chief Financial Officer
                                 (Authorized Officer on behalf of Registrant and
                                  Principal Financial and Accounting Officer)

<Page>

                                  EXHIBIT INDEX
<Table>
<Caption>
Exhibit No.                Description
<S>                 <C>
10.43*              Third Amendment to Employment Agreement between the Company
                    and Daniel J. Sullivan, dated as of June 1, 2002

10.44*              Severance and Mutual Release Agreement between the Company
                    and Daniel J. Sullivan, dated as of August 2, 2002

10.45*              Severance and Mutual Release Agreement between the Company
                    and Mark E. Munro, dated August 2, 2002

11                  Statement re Computation of Per Share Earnings

99.1                Certification pursuant to 18 U.S.C. Section 1350 as adopted
                    pursuant to section 906 of the Sarbanes-Oxley Act of 2002
</Table>