September 30, 1999 ? Qwest Communications International Inc. (Nasdaq: QWST), the broadband Internet communications company, and CAIS Internet (Nasdaq: CAIS), a pioneer in broadband access solutions, today announced a strategic relationship worth approximately $69 million for the delivery of high-speed Internet access to new markets. Qwest has been awarded a $54 million contract from CAIS for high-speed Internet capacity and broadband Internet communications services. The agreement also calls for Qwest to invest $15 million in CAIS Internet to accelerate the company's network and high-speed multi-user technology.
CAIS will purchase $44 million of capacity on Qwest's fiber network, superceding previous leasing agreements. The Qwest capacity will provide CAIS with significant network cost savings and support the delivery of CAIS network services to 35 points of presence (POPs) by year-end 1999. CAIS has also committed to purchase $10 million of Qwest's communications services, which may include application hosting, e-commerce and web hosting.
The agreement between the companies accelerates CAIS's network development plans ahead of original year 2000 forecasts, and marks an important investment for the delivery of broadband access to emerging destination points such as hotels, airports, stores, apartment communities and single family homes. Qwest's investment is equivalent to a 4.2 percent ownership stake in CAIS.
"For Qwest, the CAIS target markets represent a new opportunity to deliver broadband access to hotels and apartment buildings," said Gregory M. Casey, Qwest's senior vice president of wholesale markets. "CAIS is a market leader in developing new opportunities, and we are pleased to work with them."
"The Qwest relationship propels us beyond our original targets. In advancing our network, it allows CAIS to continue offering our innovative high speed Internet services and meet the needs of our growing contracts," said Ulysses G. Auger II, CEO, CAIS Internet. "In addition, the joint efforts will help position CAIS as a leader in delivering broadband access to multiple points in new and emerging markets."
Qwest Communications International Inc. (Nasdaq: QWST) is a leader in scalable, reliable and secure broadband Internet-based data, voice and image communications for businesses and consumers. The Qwest Macro Capacity® Fiber Network, designed with the newest optical networking, spans more than 18,500 miles in the United States, with an additional 315-mile network to be completed by the end of the year. In addition, Qwest and KPN, the Dutch telecommunications company, have formed a venture to build and operate a high-capacity European fiber optic, Internet Protocol-based network that will span 8,100 miles when it is completed in 2001. Qwest also has completed a 1,400-mile network in Mexico.
About CAIS Internet
CAIS Internet, Inc. (Nasdaq: CAIS) is a leading broadband provider, delivering the latest in end-to-end high speed Internet access solutions in new and emerging markets. CAIS provides customers with Internet connections while traveling in hotels, cruise ships, airports, and other public areas as well as at work, in SOHOs, single-family homes and apartment buildings. Combined with the CAIS patented multi-user platform and state-of-the-art network, the company's software subsidiary CAIS Software Solutions, and its business center subsidiary Business AnywhereTM, CAIS brings broadband connectivity to markets where Internet access did not previously exist.
CAIS also delivers point-to-point high speed Internet access using HyperDSL lines to commercial and residential customers, as well as a full-range of T1, T3 and other dedicated Internet access to consumers, businesses and other downstream Internet providers. All CAIS Internet services are delivered with expert 24/7 technical and customer support.
CAIS Internet operates a nationwide, clear-channel Internet and ATM Network. CAIS currently peers with public and private partners, and at national exchange points MAE East, MAE East ATM, MAE West, and AADS. CAIS Internet is headquartered in Washington, DC, and is reachable at 888.260.CAIS or on the Internet at www.cais.com. CAIS Software Solutions is based in San Diego, CA and is reachable at 619.699.4000, or on the Internet at www.caissoft.com.
This release may contain 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 Qwest with the SEC, 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 potential fluctuations in quarterly results, dependence on new product development, rapid technological and market change, failure to complete the network on schedule and on budget, financial risk management and future growth subject to risks, Qwest's ability to achieve Year 2000 compliance, adverse changes in the regulatory or legislative environment, and failure to complete the merger with U S WEST timely or at all. 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.
*CAIS is a registered trademark of CAIS Internet.This release contains statements relating to CAIS's future expectations and business strategies or other "forward-looking" information. Those statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contemplated by the statements. Important factors that may cause actual results to differ from projections include, among others: changes in business conditions; changes in the Internet services industry and the general economy; our limited operating history; our ability to manage rapid growth; our ability to enter into joint ventures and other strategic relationships with companies on terms acceptable to us; and the impact of computer and related problems that may arise from the Year 2000 problem on our business.
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