Qwest Communications Completes Restatement of Financials

DENVER, October 16, 2003 ? Qwest Communications International Inc. (NYSE: Q) today announced the completion of its restatement of 2001 and 2000 financials and that it has filed a 10-K for reporting periods 2000 ? 2002 with the U.S. Securities and Exchange Commission (SEC). The filing is also available at the SEC and Qwest Web sites.

?This is a very important day for Qwest. With the restatement complete, we are now focusing all of our resources to dramatically improve customer satisfaction and grow our key lines of business,? said Richard C. Notebaert, Qwest chairman and CEO. ?While spending a substantial amount of time working on the restatement, we have also made substantial progress in improving the service that we provide to customers - but we still have more work to do. We will provide best-in-class services to customers and firmly establish Qwest as the first choice for customers? communications needs.?

As a result of completing the restatement, Qwest also announced a number of dates for additional disclosures and filings. They are as follows:

  • The 2002 proxy and annual report will be mailed to shareowners the week of October 27, 2003.
  • The company?s annual meeting will be held on Tuesday, December 16, 2003 in Denver, CO.
  • 10-Q quarterly statements for the impacted periods of the restatement will be filed as soon as possible.
  • The company has begun making regulatory filings to allow it to offer long-distance services within its 14-state local service territory using its own network.

?We are extremely pleased to have completed the restatement and be in compliance with Generally Accepted Accounting Principles (GAAP),? said Oren G. Shaffer, Qwest?s vice chairman and CFO. ?While we have devoted significant resources to the restatement process, we have also continued, without interruption, to focus our efforts on long-term profitable growth.?

In July of 2002, Qwest announced plans to restate certain items as a result of an internal analysis being conducted by the company and its outside auditors, KPMG. As a result of this work and with today?s 10-K filing, the company?s financials are now GAAP-compliant for 2000 through 2002.

About Qwest

Qwest Communications International Inc. (NYSE: Q) is a leading provider of voice, video and data services to more than 25 million customers. The company?s 47, 000 employees are committed to the ?Spirit of Service? and providing world-class services that exceed customers? expectations for quality, value and reliability. For more information, please visit the Qwest Web site at www.qwest.com.

Forward Looking Statement Note

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 us 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 but not limited to: the duration and extent of the current economic downturn in our 14-state local service area, including its effect on our customers and suppliers; access line losses due to increased competition, including from technology substitution of our access lines with wireless and cable alternatives; the effects of our restatement of historical financial statements including delays in or restrictions on our ability to access the capital markets or other adverse effects to our business and financial position; our substantial indebtedness, and our inability to complete any efforts to de-lever our balance sheet through asset sales or other transactions; any adverse outcome of the SEC's current investigation into our accounting policies, practices and procedures and certain transactions; any adverse outcome of the current investigation by the U.S. Attorney's office in Denver into certain matters relating to us; adverse results of increased review and scrutiny by Congress, regulatory authorities, media and others (including any internal analyses) of financial reporting issues and practices or otherwise; further delays in making required public filings with the SEC; rapid and significant changes in technology and markets; any adverse developments in commercial disputes or legal proceedings, including any adverse outcome of current or future legal proceedings related to matters that are the subject of governmental investigations, and, to the extent not covered by insurance, if any, our inability to satisfy any resulting obligations from funds available to us, if any; our future ability to provide interLATA services within our 14-state local service area using our proprietary telecom network assets (as opposed to on a switched access basis); potential fluctuations in quarterly results; volatility of our stock price; intense competition in the markets in which we compete including the likelihood of certain of our competitors emerging from bankruptcy court protection or otherwise reorganizing their capital structure and competing effectively against us; changes in demand for our products and services; 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; adverse changes in the regulatory or legislative environment affecting our business; and changes in the outcome of future events from the assumed outcome included in our significant accounting policies.

The information contained in this release is a statement of Qwest's present intention, belief or expectation and is based upon, among other things, the existing regulatory environment, industry conditions, market conditions and prices, the economy in general and Qwest's assumptions. Qwest may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors, in Qwest's assumptions or otherwise. The cautionary statements contained or referred to in this release should be considered in connection with any subsequent written or oral forward-looking statements that Qwest or persons acting on its behalf may issue. 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.

By including any information in this release, Qwest does not necessarily acknowledge that disclosure of such information is required by applicable law or that the information is material.

The Qwest logo is a registered trademark of, and CyberCenter is a service mark of, Qwest Communications International Inc. in the U.S. and certain other countries.

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