LONDON, December 4, 2001 - Level 3 Communications, Inc. (Nasdaq:LVLT) today announced plans to significantly expand its European network.
The company plans to begin offering services in eight additional markets across Western Europe in 2002. The markets are Geneva, Madrid, Milan, Stockholm and Zurich, and the German cities of Cologne, Karlsruhe and Stuttgart. (See attached map.)
Level 3 plans to acquire wavelengths or other existing lit capacity from other carriers operating in the region, over which it can offer a full complement of communications services to its customers.
"These plans will dramatically increase the size of our European footprint," said Kevin O'Hara, Level 3's president and chief operating officer. "Once the expansion is complete, Level 3 will be able to deliver services to 17 of the top markets on the continent. Our existing and prospective customers have been encouraging us to initiate this expansion, and I expect it to afford them even greater access to the significant operational, provisioning and cost advantages Level 3 provides."
Level 3 offers a range of communications services targeted toward the world's top 300 bandwidth customers, including wavelengths, private line, dark fiber, managed modem and IP services. Level 3's current customers include companies such as America Online, BT, Cable & Wireless, COLT Telecom Group, France Telecom and Microsoft.
O'Hara noted that the company's decision to use wavelengths or other existing lit capacity will enable it to expand at a fraction of the cost that would be required with new construction. "Level 3 remains in an extremely strong financial position, with approximately $2.5 billion in available liquidity as of the end of the third quarter," O'Hara said. "Continued turmoil across the communications industry has underscored the strategic advantage of our cash position. In order to maintain that advantage, we are undertaking the expansion in Europe in a way that will require minimum capital outlays. In that way, we can better serve the needs of our customers while preserving our pre-funded status and funding cushion."
Level 3's existing, two-ring network in Europe spans 3,600 route miles. It connects London, Amsterdam, Brussels and Paris and the German cities of Frankfurt, Dusseldorf, Hamburg, Berlin and Munich. The company also operates multi-conduit metropolitan networks in all nine markets.
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.
