[L3 introductory press release]
Kiewit Diversified to Focus on Business Information and
Communications Services; Company Changes Name to Level 3
Communications
OMAHA, Neb., Jan. 19 /PRNewswire/ -- Kiewit Diversified Group, Inc.
(KDG), a subsidiary of Peter Kiewit Sons', Inc. (PKS), announced
today that it has changed its name to Level 3 Communications, Inc.
(Level 3). The new identity reflects a change in the Company's
business focus from investments in a range of industries to a
concentration on business information and communications services.
This shift began in the summer of 1997 with the hiring of a team of
former MFS Communications Company, Inc. executives, including James
Q. Crowe, president and chief executive officer of Level 3, R.
Douglas Bradbury, executive vice president and chief financial
officer and Kevin J. O'Hara, executive vice president, operations.
The Company's reorganization was approved by PKS's stockholders in
December 1997. A tax-free spin-off of PKS's core construction and
mining business awaits an IRS ruling, which is expected in the second
quarter of 1998.
Level 3 intends to provide a full range of information and
communications services, primarily to businesses, over the first end-
to-end network designed and built specifically for Internet Protocol
(IP) based services. The Company expects to offer services over
interconnected local and long distance networks it is building across
the U.S. Plans also call for the Company to expand internationally.
"We are building a network from the ground up incorporating Internet
technology. We are optimizing the network for IP. As far as I know,
we are the only organization with that kind of business plan. So, our
customers will fully benefit from the many advantages of Internet
technology and packet switching." said Crowe.
"There is a fundamental shift occurring today -- as fundamental as
the shift from the telegraph to the telephone or the mainframe
computer to the PC -- that is the shift to Internet technology and IP
based communications," Crowe continued. "What will continue to drive
that shift is economics. These new networks are simply less expensive
-- a lot less expensive -- than the traditional hundred year old,
telephone networks."
Creation of Network to Build on Existing Business
A strong base of computer technology and Internet expertise already
exists within the Company through its wholly owned subsidiary, PKS
Information Services ('PKSIS'). PKSIS is a full-service provider of
computer outsourcing, systems integration and enterprise Internet
services to customers in the United States and abroad. PKSIS has
approximately 1,000 information service professionals located across
the U.S., in Ireland and India.
Level 3 will combine PKSIS's technical expertise with an advanced
network infrastructure to offer its customers an integrated set of
services aimed at internet-enabling business applications currently
operating on older legacy systems.
New Name Reflects Company Focus
The name, Level 3 Communications, is derived from the layered set of
standards that is often used in the industry to describe networks.
The Company's strategy generally calls for services to be provided in
the first three levels of these technical specifications.
Company Closes Sale of Interests in CalEnergy, Inc.
Consistent with its new business focus, on January 2, 1998, Level 3
completed the sale of common stock of CalEnergy, Inc. and direct
ownership interests in energy projects jointly held by both
companies. The sale of assets to CalEnergy resulted in before tax
proceeds to the Company of approximately $1.2 billion.
Company to Locate Corporate Headquarters in Denver
A ruling regarding the tax-free nature of the spin-off transaction is
expected from the IRS during the second quarter of 1998. Once
received, the Company intends to relocate its headquarters and
operations to the Denver area where it expects to recruit a
specialized workforce of computer scientists, Internet engineers and
technology specialists. A final decision regarding the relocation of
corporate headquarters is expected within thirty days. PKSIS'
headquarters are expected to remain in Omaha, Nebraska.
Level 3 Communications, Inc., a wholly owned subsidiary of Peter
Kiewit Sons', Inc., currently has holdings in a diverse group of
industries. The Company has announced plans to refocus its business
on information and communication services. Level 3's World Wide Web
address is l3.com.
SOURCE Kiewit Diversified Group, Inc.
CONTACT: Media: Josh Howell, 402-536-3677, or Investors: Julie
Stangl, 402-536-3677
Web Site: l3.com |
