Qwest Signs $430 Million Contract With U.S. Government

DENVER - April 27, 1998 - ( Nasdaq: QWST) Qwest today announced a prime contract with the U.S. government worth up to $430 million over 10 years. Under the terms of the agreement, Qwest will provide the government with the fiber, hardware, engineering, communications services and network management that make up a custom Virtual Private Network (VPN) service. Part of the Q.VPN family of services, this network is one of the first custom VPN offering in Qwest?s suite of data service offerings. Leveraging the Qwest Macro CapacitySM Fiber Network and its TeraPOP (Terabit Points of Presence) network design, this custom network provides the customer with the privacy, service features and price performance uniquely designed to meet their application requirements.

Qwest?s state-of-the-art native IP nationwide network continues to deliver the most advanced Internet services to the market today. Qwest?s suite of IP services includes Remote Access VPN, high speed Internet access, web hosting and web content services. Qwest also offers to consumers and small businesses Q.talk - the nation?s first commercially deployed phone-to-phone Internet telephony service.

"The federal government is an enormous business opportunity with significant critical networking and communications requirements, and Qwest is pleased to make a bold entrance into this market by providing a custom VPN to the nation?s largest employer," said Joseph P. Nacchio, president and CEO of Qwest. "Not only is Qwest setting the standard for delivering the next generation data network infrastructure for businesses, but Qwest?s involvement in Internet2 and other research and academic backbones, such as CALRen2, mark an aggressive move to develop secure private networks that will advance these institutions in the information age."

"Today?s announcement marks the first large government contract secured by Qwest?s newly created Government Systems Division," said Dean Wandry, senior vice president of New Business Development at Qwest. "This agreement underscores Qwest?s unique ability to deliver high quality, secure and reliable multimedia and data services that the government and federal agencies depend on to conduct immense, essential governmental tasks."

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 on Form 10-Q, 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, volatility of stock price, financial risk management and future growth subject to risks.

Thek of Qwest Communications International Inc. in the U.S. and certain other countries.

Contact Information

Tyler Gronbach

(303) 992-2155

Twitter Facebook Linkedin Google+ Email