LEVEL 3 AND VIATEL COLLABORATE ON TRANS-ATLANTIC CABLE SYSTEM
Agreement Gives Level 3 and Viatel Additional Flexibility to Take Advantage of New Undersea Fiber and Optics Technology as it Emerges
Broomfield, CO -- April 12, 2000 – Level 3 Communications, Inc. (Nasdaq:LVLT) today announced it has signed an agreement with Viatel, Inc. (Nasdaq:VYTL) and that Viatel will acquire a 25 percent ownership interest, valued at over $150 million, in a trans-Atlantic fiber-optic cable system now under construction by Level 3. This agreement gives both Level 3 and Viatel additional flexibility to take advantage of new undersea fiber and optics technology as it emerges. As a result of this agreement, both companies will own and operate fibers on the trans-Atlantic cable. Global Crossings Ltd. is also participating in the trans-Atlantic cable system. The 1.28 terabit cable connecting Europe and the United States is expected to be ready for operation by September 2000.
"This agreement underscores our commitment to enabling the continuing evolution of a new global Internet economy that includes fast, high-capacity connections between key markets in Europe and the United States," said Colin Williams, executive vice president, global systems and services for Level 3. "Additionally, selling fiber on the trans-Atlantic cable to Viatel enhances Level 3's ability to incorporate future undersea fiber technology into its global broadband Internet protocol network," said Williams.
"Welcome to the new world of 'co-opetition,' where telecom companies both compete and cooperate with each other," said Michael J. Mahoney, Viatel's chairman and chief executive officer. "Teaming with Level 3 expands our growing international fiber network and will enable us to rapidly deploy additional capacity on the world's busiest trans-oceanic communication route." Viatel, Inc. is a rapidly growing provider of all distance communications services - local and long-distance, voice and data, Web-centric and multimedia - to end-users, ISPs, ASPs and other carriers in Europe and North America. The cable system's landing stations are located on Long Island in the United States and on the West Coast of the United Kingdom. Additionally, as part of the transaction, Viatel is acquiring added trans-Atlantic capacity from Level 3 that will enable Viatel to offer diversely routed services and further expand its network across the Atlantic.
(* Softswitches are advanced software based switching systems, which enable Level 3 to provide services combining the best features of the Internet and traditional telephone networks.)
About Level 3 Communications
Level 3 Communications, Inc. (NASDAQ: LVLT), an international communications company, operates one of the largest Internet backbones in the world, connecting 180 markets in 18 countries. The company serves a broad range of wholesale, enterprise and content customers with a comprehensive suite of services including: Internet Protocol (IP) services, broadband transport and infrastructure services, colocation services, voice and voice over IP services, content delivery and media distribution services. These services provide the building blocks to enable Level 3’s customers to meet their growing demands for advanced communications solutions. The company’s Web address is www.Level3.com.
"Level 3 Communications,” "Level 3," the red 3D brackets and the Level 3 Communications logo are registered service marks of Level 3 Communications, LLC in the United States and/or other countries. Level 3 services are provided by wholly owned subsidiaries of Level 3 Communications, Inc. Any other service, product or company names recited herein may be trademarks or service marks of their respective owners.
Forward-Looking Statement
Some of the statements that we make in this press release are forward looking in nature. These statements are based on management’s current expectations or beliefs. These forward looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside our control, which could cause actual events to differ materially from those expressed or implied by the statements. The most important factors that could prevent us from achieving our stated goals include, but are not limited to our ability to: successfully integrate acquisitions; increase the volume of traffic on our network; defend our intellectual property and proprietary rights; develop new products and services that meet customer demands and generate acceptable margins; successfully complete commercial testing of new technology and information systems to support new products and services; attract and retain qualified management and other personnel; and meet all of the terms and conditions of our debt obligations. Additional information concerning these and other important factors can be found within Level 3’s filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors. Level 3 is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
