DENVER, July 20, 2001 - Qwest Communications International Inc. (NYSE:Q) today announced that it has terminated its agreements to sell access lines and related properties to Citizens Utilities because Citizens has refused to complete the transactions. Qwest intends to seek all appropriate remedies.
U S WEST entered into the agreements originally, before its acquisition by Qwest. Under the agreements, U S WEST was to sell approximately 540,000 access lines in nine states for $1.7 billion. The termination of the agreements by Qwest does not affect the sale to Citizens of approximately 20,000 access lines in North Dakota for $40 million, which was completed last year. Qwest currently has approximately 18 million access lines.
"We are delighted to continue to serve our customers and own the lines. For more than two years U S WEST, and then Qwest, worked with Citizens to complete this transaction to ensure a smooth transition for customers, said Augie Cruciotti, Qwest executive vice president of local networks. "At this point, it is clear it is in our customers' best interests to continue to receive services from Qwest."
Qwest Communications International Inc. (NYSE: Q) is a leader in reliable scalable 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 equipment for speed and efficiency, spans more than 113,000 miles globally. For more information, please visit the Qwest web site at www.qwest.com.
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 Qwest 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 potential fluctuations in quarterly results, volatility of Qwest's stock price, intense competition in the communications services market, changes in demand for Qwest's products and services, dependence on new product development and 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, rapid and significant changes in technology and markets, adverse changes in the regulatory or legislative environment affecting Qwest's business and delays in Qwest's ability to provide interLATA services within its 14-state local service territory, failure to maintain rights of way, and failure to achieve the projected synergies and financial results expected to result from the acquisition of U S WEST timely or at all and difficulties in combining the operations of Qwest and U S WEST. 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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