DENVER, Feb. 13, 2007 - Qwest Communications International Inc. (NYSE: Q) has been awarded two contracts by the General Services Administration (GSA) to provide local voice and data services to federal agencies located throughout nine Western states. The combined value of the awards is nearly $10 million but likely will be more as the agencies determine their service needs over the length of the contracts.
Both competitive contracts have been awarded solely to Qwest, which is providing offices and facilities of federal government agencies in these regions a range of products and services, including hosting and voice-over-Internet protocol, or "VoIP" technologies, as well as performance criteria and billing structure that are required by GSA.
"Qwest has a successful track record of providing services to the federal government through its leading nationwide network that offers abundant capacity and advanced technology," said Diana Gowen, Qwest senior vice president and general manager of government services. "Qwest is ready to provide the services the federal government needs now and in future programs, such as Networx, as the agencies transform their technology."
The maximum five-year contracts are for GSA Region 8, which comprises Colorado, Montana, North Dakota, South Dakota, Utah and Wyoming, and GSA Region 10, which covers Idaho, Oregon and Washington. The new contracts, known as Local Service Acquisitions, or LSAs, are for areas in these states that are not already serviced by separate Metropolitan Area Acquisitions, or MAA contracts, that GSA has with Qwest in Denver, Salt Lake City, Seattle and Boise, Idaho.
These awards from GSA are in addition to a multimillion-dollar federal contract Qwest recently won to provide bandwidth transmission services to the Defense Information Systems Agency for connecting military installations located across the West to the Global Information Grid over the next 10 years.
Qwest is a leading provider of high-speed Internet and data, voice, and video services to more than 50 federal government agencies, including the Department of Energy, Department of Defense, Department of Justice, the Department of Treasury, the Department of Housing and Urban Development and the U.S. Postal Service. Qwest ranks in the top 50 of the 2006 "Top Federal Prime Contractors" as ranked by Washington Technology.
Qwest offers a unique and powerful combination of voice and data solutions for businesses, government agencies and consumers - locally and throughout the country. Customers coast to coast are turning to Qwest's industry-leading national fiber optic network and its Spirit of Service for quality products and superior customer experience. For more information on Qwest, and its various operating subsidiaries, please go to www.qwest.com.
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, among others; 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 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 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 or were the subject of governmental investigations; potential fluctuations in quarterly results; volatility of our stock price; intense competition in the markets in which we compete including the effects of consolidation in our industry; 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; changes in the outcome of future events from the assumed outcome included in our significant accounting policies; and our ability to utilize net operating losses in projected amounts.
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 and other 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