News Releases

News Releases
Verizon Wireless Agrees to Purchase Qwest PCS Licenses and Wireless Network Assets for $418 Million Cash

DENVER, July 1, 2004 ?Qwest Communications International Inc, (NYSE: Q) and Verizon Wireless today announced an agreement for Verizon Wireless to acquire Qwest?s PCS licenses and related wireless network assets in 14 states.

The transaction is expected to close by year-end or early 2005, and will not impact new or existing Qwest wireless customers. Qwest will continue to offer wireless service under the Qwest brand to residential and business customers through its wholesale relationship with Sprint PCS.

Under the terms of the agreement, Verizon Wireless will pay $418 million in cash to purchase PCS licenses (1900 MHz) in 14 western states. In addition, Verizon Wireless will also obtain cell sites and wireless network infrastructure, site leases, and associated network equipment.

?The sale completes our shift from a network-centric wireless provider to a more customer-focused operation that is designed to deliver exceptional value and service to customers,? said Oren G. Shaffer, Qwest vice chairman and chief financial officer. ?The monetization of the network assets further improves our liquidity.?

The sale is contingent upon federal regulatory approval. JP Morgan acted as a financial advisor to Qwest.

About Qwest

Qwest Communications International Inc. (NYSE: Q) is a leading provider of voice, video and data services to more than 25 million customers. The company?s 46,000 employees are committed to the ?Spirit of Service? and providing world-class services that exceed customers? expectations for quality, value and reliability. For more information, please visit the Qwest Web site at

Forward Looking Statement Note

This release may contain projections and other forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by us with the Securities and Exchange Commission, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including but not limited to: access line losses due to increased competition, including from technology substitution of our access lines with wireless and cable alternatives; our substantial indebtedness, and our inability to complete any efforts to de-lever our balance sheet through asset sales or other transactions; any adverse outcome of the SEC's current investigation into our accounting policies, practices and procedures and certain transactions; any adverse outcome of the current investigation by the U.S. Attorney's office in Denver into certain matters relating to us; adverse results of increased review and scrutiny by Congress, regulatory authorities, media and others (including any internal analyses) of financial reporting issues and practices or otherwise; rapid and significant changes in technology and markets; any adverse developments in commercial disputes or legal proceedings, including any adverse outcome of current or future legal proceedings related to matters that are the subject of governmental investigations, and, to the extent not covered by insurance, if any, our inability to satisfy any resulting obligations from funds available to us, if any; potential fluctuations in quarterly results; volatility of our stock price; intense competition in the markets in which we compete including the likelihood of certain of our competitors emerging from bankruptcy court protection or otherwise reorganizing their capital structure and competing effectively against us; changes in demand for our products and services; acceleration of the deployment of advanced new services, such as broadband data, wireless and video services, which could require substantial expenditure of financial and other resources in excess of contemplated levels; higher than anticipated employee levels, capital expenditures and operating expenses; adverse changes in the regulatory or legislative environment affecting our business; and changes in the outcome of future events from the assumed outcome included in our significant accounting policies. Readers should also consider the risks specifically associated with the proposed sale of our wireless assets to Verizon Wireless, which include, but are not limited to: delays or failure to complete the sale of the wireless assets due to inability to satisfy all closing conditions, such as the obtaining of all necessary regulatory approvals; unanticipated liabilities associated with indemnities under the asset sale agreement, which could result from Verizon Wireless? inability to integrate or make full use of the assets or from other unknown liabilities associated with the assets; and any loss of opportunities that may subsequently present themselves for alternative uses or sales of the wireless spectrum and other assets being sold to Verizon.

The information contained in this release is a statement of Qwest's present intention, belief or expectation and is based upon, among other things, the existing regulatory environment, industry conditions, market conditions and prices, the economy in general and Qwest's assumptions. Qwest may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors, in Qwest's assumptions or otherwise. The cautionary statements contained or referred to in this release should be considered in connection with any subsequent written or oral forward-looking statements that Qwest or persons acting on its behalf may issue. This release may include analysts' estimates and other information prepared by third parties for which Qwest assumes no responsibility.

Qwest undertakes no obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

By including any information in this release, Qwest does not necessarily acknowledge that disclosure of such information is required by applicable law or that the information is material.

The Qwest logo is a registered trademark of Qwest Communications International Inc. in the U.S. and certain other countries.


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