San Francisco, CA, April 5, 2007 - FiberTower Corporation (NASDAQ: FTWR), a wireless backhaul services provider, today announced that it has been selected by Qwest Communications International Inc. (Qwest) as a team member to participate in the Networx Universal contract awarded to Qwest on March 29, 2007 by the U.S. General Services Administration (GSA). FiberTower will operate under a subcontract with Qwest to compete for business from individual government agencies to provide fixed wireless communications services. Qwest is a leading supplier to the federal government serving more than fifty federal agencies including the Department of Energy, Department of Justice, the Department of Treasury and the U.S. Postal Service.
The Networx Universal contracts are the first of two sets of contracts to be awarded by the GSA as it begins to transform the current federal telecommunications system and build upon FTS2001. A second set of contracts covering the Networx Enterprise program will be awarded in May of 2007. The combined Networx program has an overall value estimated to be no less than $20 billion to be spread across all award winners and covers a 10-year contract term.
The Networx program is the most expansive federal telecommunications program ever structured and will enable the U.S. government to purchase state-of-the-art telecommunications products and services on a turnkey basis.
"FiberTower is extremely pleased to have been selected as a member of a team chosen by the federal government as a leading edge provider of telecommunications services and products," said Michael Gallagher, FiberTower's President and CEO. "We are proud to be working for Qwest on this project and believe that our selection validates our commitment to provide scalable, reliable, cost-effective products supported by a high level of customer service. We look forward to supporting the government's needs through this special relationship with Qwest."
FiberTower is a backhaul and access services provider focused primarily on the wireless carrier market. With its extensive spectrum footprint in 24 GHz and 39 GHz bands, carrier-class microwave and fiber networks in 14 major markets, customer commitments from six of the leading cellular carriers, and partnerships with the largest tower operators in the U.S, FiberTower is considered to be the leading alternative carrier for wireless backhaul. FiberTower also provides backhaul and access service to government and enterprise markets. For more information, please visit our website at www.fibertower.com.
Statements included in this news release which are not historical in nature are "forward-looking statements" within the meaning of Section 21E of the U.S. Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. These include, without limitation, statements regarding the company's planned capital expenditures, expected cost per site, anticipated customer growth and expansion plans. There are many risks, uncertainties and other factors that can prevent the achievement of goals or cause results to differ materially from those expressed or implied by these forward-looking statements including, without limitation, difficulties in integrating our companies after our merger in 2006, anticipated negative cash flows and operating losses, additional liquidity requirements, potential loss of significant customers, downturns in the wireless communication industry, regulatory costs and restrictions, potential loss of FCC licenses, equipment supply disruptions and cost increases, and competition from alternative backhaul service providers and technologies, along with those risk factors described in the Company's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.