DENVER - January 6, 1998 (Nasdaq: QWST) Qwest today announced a long-term contract to provide Apex Global Internet Services, Inc. (AGIS) approximately 10,000 route miles of OC-48 capacity for a present contract value of approximately $260 million. As part of the consideration, Qwest will receive 19.99 percent of the common stock of AGIS and will have a seat on the AGIS board of directors. Qwest will receive consideration for the capacity in the early years of the contract plus monthly operations and maintenance fees over the term of the multi-year agreement.
"Qwest is extremely pleased to have AGIS as a customer and to have them select the Qwest network as their SONET backbone," said Joseph P. Nacchio, president and CEO of Qwest. "AGIS has a talented management team and an historical presence in the Internet community that presents positive synergies between our two companies ."
"Clearly Qwest is in a position to deliver a higher performing network than their competitors," said Philip J. Lawlor, president and CEO of AGIS. "The selection of Qwest is attributable to their highly reliable fiber optic network design and network management capabilities."
Under the terms of the Agreement, the companies will enter into a joint marketing arrangement to expand their product and service offerings to include IP telephony, video conferencing, ATM and frame relay services. The companies will interconnect their value-added networks to expand their geographic reach.
The Qwest Macro CapacitySM Network Qwest's planned domestic 16,000 mile network will serve over 125 cities, which represent approximately 80 percent of the data and voice traffic originating in the United States, upon its completion in the second quarter of 1999. Currently, 3,350 miles are activated from Los Angeles to Indianapolis; and from Daling its network 1,400 miles into Mexico with completion slated for late third quarter 1998.
The Qwest Macro Capacity Fiber network is designed with a highly reliable and secure bi-directional, line switching OC-192 SONET ring architecture. Upon completion, the network will offer a self-healing system that provides the ultimate security and reliability by allowing instantaneous rerouting in the event of a fiber cut.
About AGIS AGIS (www.agis.net), founded in 1994, provides Internet access to millions of users via its extensive customer base of Regional Bell Operating Companies, content providers, large corporations and Internet Service Providers. Always the technology leader, A GIS was the first National Service Provider to offer commercial 155 Mbps connections to the Internet; first to reduce points of failure in a network by using switching technologies; and first to design a wholesale business model (so as not to compete with customers by selling retail access). AGIS offers Internet connectivity from 56Kbps to 155Mbps.
About Qwest Qwest Communications International, Inc. (Nasdaq: QWST
), is a multimedia communications company building a high-capacity, fiber optic network for the 21st century. Qwest's planned domestic 16,000 mile network will serve over 125 cities, which represent approxoice traffic originating in the United States, upon its completion in the second quarter of 1999. Currently , 3,350 miles are activated from Los Angeles to Indianapolis; and from Dallass to Houston. Qwest is also extending its network 1,400 miles into Mexico with completion slated for late third quarter 1998. With its cutting-edge technology, Qwest will deliver high-quality voice, data and video connectivity securely and reliably to businesses, consumers and other communications service providers.
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