Denver, August 30, 1999 - Qwest Communications International Inc. (Nasdaq: QWST), the broadband Internet communications company, today announced that the supervisory board of its European joint venture, KPNQwest, has agreed that it will undertake an initial public offering (IPO) in the near future in the United States and Europe. The IPO proceeds will be used to expand KPNQwest's European operations.
"Both KPN and Qwest have authorized management to initiate an initial public offering of KPNQwest. We intend to get started on that task immediately," said Jack McMaster, CEO of KPNQwest.
The offering will be made only by means of a prospectus. The KPNQwest venture was announced in November 1998 and finalized on April 13, 1999. The new company is building a 8,100 mile Internet protocol-based network to service customers in the key business markets throughout Europe. The company currently has activated two of its six OC-192 self-healing fiber-optic rings, covering 14 European business cities.
Customers for the company include multi-national and other firms worldwide that want integrated voice, data and image communications. In addition, KPNQwest also provides wholesale network capacity to other communications companies.
Qwest Communications International Inc. (Nasdaq: QWST) is a leader in reliable and secure broadband Internet-based data, voice and image communications for businesses and consumers. Headquartered in Denver, Qwest has more than 9,000 employees working in North America, Europe and Mexico. The Qwest Macro Capacity® Fiber Network, designed with the newest optical networking, will span more than 18,500 route miles in the United States when it is completed by mid-1999, and an additional 315-mile network route that will be completed by the end of the year. Qwest also has nearly completed a 1,400-mile network in Mexico.
This release is not an offer to sell or a solicitation of an offer to buy securities of KPNQwest in the U.S. or any other jurisdiction. That offer will be made only by a prospectus.
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. 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.
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