Everyone deserves to be compensated?>
US LEC Corp. Comments Further On Bellsouth Complaint
September 17, 1998 CHARLOTTE, N.C., Sept. 16 /PRNewswire/
via NewsEdge Corporation -- US LEC Corp.
(Nasdaq: CLEC), a switch-based competitive
local exchange carrier, today issued the
following statement in response to numerous
inquires about the news releases issued this
week by the Company and BellSouth
Telecommunications, Inc. (NYSE: BLS)
("BellSouth").
Richard T. Aab, chairman and chief executive
officer of US LEC Corp., commented, "As we
have previously stated, US LEC vigorously
denies the allegations by BellSouth. We fully
expect the U.S. District Court will rule
favorably on our position on the overall issue
of reciprocal compensation, and that the
North Carolina Utilities Commission ("NCUC")
will also reach a favorable decision on the
issue of the billable minutes raised by
BellSouth. We believe the Interconnection
Agreement between our two companies is
clear on this matter.
"Regardless of the outcome of BellSouth's
latest complaint, we believe US LEC is well
positioned to execute its growth strategy
successfully. We continue to implement this
strategy ahead of schedule, and expect to
meet or exceed our growth objectives and to
achieve operating results in line with current
earnings estimates for the third quarter and
for 1998. With cash and cash equivalents of
nearly $60 million at June 30, 1998, and no
bank debt, we are not concerned about the
impact of the ultimate outcome on our ability
to execute our growth plan."
US LEC currently provides local, long
distance, and enhanced services to large
and mid-sized business customers in
selected markets in the Southeast. The
company is certified to provide these
services in North Carolina, Tennessee,
Georgia, Florida, South Carolina and Virginia.
US LEC can be found on the World Wide Web
at www.uslec.com.
Except for the historical information
contained herein, this news release contains
forward-looking statements, subject to
uncertainties and risks, including the demand
for US LEC's services, the ability of the
Company to successfully attractand retain
personnel, competition, uncertainties
regarding its dealings with ILECs, and other
telecommunications carriers and facilities
providers, and regulatory uncertainties.
These and other applicable risks are
summarized in the "Risk Factors" section and
elsewhere in the Company's prospectus
dated April 23, 1998, which is on file with
the Securities and Exchange Commission.
Investor Contact - Michael K. Robinson,
Executive Vice President & Chief Financial
Officer, 704-319-1114 or
mrobinson@uslec.com.
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