BROOMFIELD, Colorado, August 24, 2000 – Level 3 Communications, Inc., (NASDAQ:LVLT) today announced it will deploy a new generation of Corning Incorporated's (NYSE:GLW) "LEAF" optical fiber throughout its U.S. inter-city network in a move that will significantly increase the network's capacity and cost efficiency.
Level 3 will be the first company to deploy this evolutionary fiber, which will better enable emerging high speed, long reach transport systems. Level 3 has signed a letter of intent to buy more than two million cabled fiber kilometers of third-generation LEAF fiber from Corning. Level 3 plans to begin installing the new generation of fiber in the second conduit of the network in the first quarter of 2001 and expects to be substantially complete by the end of the year.
Corning Cable Systems, a wholly owned Corning subsidiary, will continue to provide the cable for all of the LEAF fiber required for this next stage of network development. "We are particularly pleased to announce the deployment of a new generation of LEAF fiber in our multi-conduit network," said Kevin O'Hara, Level 3 president and chief operating officer.
"This decision is driven not only by improving technology but by customer demand. Our unique multi-conduit network allows both us and our customers to take advantage of ongoing improvements in optical fiber technology. This upgradable network design enables rapid responses to changes in the marketplace and allows Level 3 to deploy new fiber technologies with unprecedented and unequaled speed." Jack Waters, Level 3 chief technology officer, said the agreement with Corning underscores a fundamental part of the Level 3 business plan. "Our goal is to maintain a significant cost advantage for bandwidth services," Waters said. "We will achieve this by installing new generations of fiber at the optimum rate. By continuously adopting new technologies, we can lower the price of bandwidth services."
"Level 3 was Corning's first customer for the earlier generations of LEAF fiber, and today's announcement further underscores the strong relationship between Level 3 and Corning," said Wendell Weeks, Corning's executive vice president, Optical Communications. "Level 3 has been an integral part of our growth plan from the beginning, and they will continue to be in the future. Our companies will continue working together on the development and deployment of future fiber technology in order to optimize key network factors such as bit rate, the available number of light wavelengths and the spacing of regeneration electronics in a way that achieves the lowest unit cost." Alan Eusden, Corning vice president and general manager, Optical Fiber, said, "The new generation of LEAF fiber will offer a polarization mode dispersion (PMD) specification that will be improved by 50 percent over the previous version. The resulting fiber performance will enable Level 3 to significantly increase the transmission distance and data rates of their long haul network, while reducing the need for PMD compensation or signal regeneration."
(*Softswitches are advanced software based switching systems that enable Level 3 to provide services combining the best features of the Internet and traditional telephone networks.)
[Editor's Note: Corning and LEAF are registered trademarks of Corning Incorporated]
About Corning
Established in 1851, Corning Incorporated (www.corning.com) creates leading-edge technologies for the fastest-growing markets of the world's economy. Corning manufactures optical fiber, cable and photonic products for the telecommunications industry; and high-performance displays and components for television and other communications-related industries. The company also uses advanced materials to manufacture products for scientific, semiconductor and environmental markets. Corning's revenues in 1999 were $4.7 billion. For more information about Corning's latest generation of LEAF optical fiber, visit www.corningfiber.com.
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.
