DENVER, December 7, 1999 - Qwest Communications International Inc. (NASDAQ: QWST), the broadband Internet communications company, has been awarded a multimillion dollar contract from Bertelsmann mediaSystems, which operates all computer centers and the network infrastructure of Bertelsmann AG, the world's third-largest media company with revenues of more than $15 billion.Under the multi-year contract, Qwest will become one of the primary telecommunications providers for Bertelsmann's internal IT infrastructure in the United States and will establish a platform for Bertelsmann's future multimedia applications. Initially, Qwest is providing private line, frame relay and voice service to connect Bertelsmann's computer centers and corporate backbone to the Qwest network.
Bertelsmann is also in discussions to use Qwest's broadband capabilities to bring cutting-edge media technologies to market, including digital asset management, real-time editing of movies and music, multimedia storage and distribution, video and audio streaming, and a host of other multimedia applications.
"We're pleased to be working with a world leader like Bertelsmann," said Shaun P. Gilmore, Qwest senior vice president of national accounts and government markets. "Qwest's ability to provide reliable high-speed, high-capacity integrated transmission of voice, data, audio and video will give Bertelsmann a solid base on which to deploy its 21st-century media technologies."
"The Qwest network's superior capability to provide state-of-the-art service for our multimedia applications is extremely important to us," said Steve Prange, Bertelsmann mediaSystems director. "Beyond that, however, we've been impressed with Qwest's record of excellent service and support, and with the expertise and professionalism of its account team. We're looking forward to a mutually productive relationship with Qwest."
Bertelsmann mediaSystems operates all computer centers and the network infrastructure of the Bertelsmann group. Bertelsmann mediaSystems is also represented in the external market, offering Internet solutions and network services.
Bertelsmann AG is the third-largest media company in the world with annual sales of approximately DM 29 billion, including non-consolidated revenues. The company has significant interests in all areas of media including book, magazine and newspaper publishing, music, television, online, film and radio. With more than 600 individual companies, Bertelsmann currently employs nearly 65,000 people in 53 countries. Some of the well-known companies leading the way in their respective industries include Random House Publishing, BMG Entertainment, RCA Records, Arista Records, and Doubleday Books.
Qwest Communications International Inc. (Nasdaq: QWST) 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, 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, KPNQwest (Nasdaq: KQIP), Qwest's European joint venture with KPN, the Dutch telecommunications company, is building and will operate a high-capacity European fiber optic, Internet-based network that will span 9,150 miles when it is completed in 2001. Qwest also has completed a 1,400-mile network in Mexico. For more information, please visit the Qwest web site at www.qwest.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 maintain rights of way, 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 and achieve projected synergies and financial results 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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