Tomorrow will be a happy day, right ST!?
McLeodUSA Denies Groundless Rumors
Business Wire - Thursday, September 27, 2001
CEDAR RAPIDS, Iowa--(BUSINESS WIRE)--Sept. 27, 2001--McLeodUSA Incorporated (Nasdaq:MCLD),
the nation's largest independent competitive local exchange carrier, today issued the following statement:
While ordinarily it is the company's policy not to comment on rumor and speculation, McLeodUSA believes it is in
the best interest of its customers, investors and employees to comment on recent inaccurate rumors about the
viability of the company. The company believes its stock has been trading irrationally based on these groundless
rumors. McLeodUSA is confident in its future and has absolutely no intention of filing for bankruptcy.
Since announcing a 90-day planning process in August, McLeodUSA has made significant progress in laying out its
detailed plans for continued future success, focusing on these primary activities:
-- Refining its business strategy for going forward;
-- Analyzing the profitability of each of its markets with the
intent of right-sizing and focusing its sales organization on
profitable revenue growth;
-- Reviewing its capital expenditure requirements while
maintaining full funding;
-- Reviewing each business unit in detail for cost and
operational synergies;
-- Reviewing its asset portfolio to make available for sale
assets which no longer align with the company's revised
strategic plan;
-- Establishing detailed plans for 2002 and 2003 to achieve
profitable growth.
The company believes it has the fundamentals in place to navigate through this difficult environment, and in fact,
maximize the company's significant opportunity. McLeodUSA is on track to complete its detailed review and will
communicate its plans to shareholders in the next several weeks.
About McLeodUSA
McLeodUSA provides integrated communications services, including local services, in 25 Midwest, Southwest,
Northwest and Rocky Mountain states. The company also provides data and voice services in all 50 states.
McLeodUSA is a facilities-based telecommunications provider with, as of June 30, 2001, 383 ATM switches, 49
voice switches, 372 collocations, 512 DSLAMs, nearly 31,000 route miles of fiber optic network and 10,600
employees. The company's fiber optic network is capable of transmitting integrated next-generation data, Internet,
video and voice services, reaching 800 cities and approximately 90% of the U.S. population. In the next 12
months, McLeodUSA plans to distribute 35 million telephone directories in 26 states, serving a population of 59
million. McLeodUSA is a Nasdaq-100 company traded under the symbol MCLD. Visit the company's web site at
www.mcleodusa.com.
Some of the statements contained in this press release discuss future expectations and actions, contain projections
of results of operations or financial condition, cash position, revenue and EBITDA or state other forward-looking
information. Those statements are subject to known and unknown risks, uncertainties and other factors that could
cause the actual results to differ materially from those contemplated by the statements. The "forward-looking"
information is based on various factors and was derived using numerous assumptions. In some cases, you can
identify these so-called "forward-looking statements" by our use of words such as "may," "will," "should," "expect,"
"plan," "anticipate," "believe," "estimate," "predict," "project," "intend," "continue" or "potential" or the negative of
those words and other comparable words. You should be aware that those statements only reflect our predictions.
Actual events or results may differ substantially. Important factors that could cause actual events or results of
McLeodUSA to be materially different from the forward-looking statements include availability of financing and
regulatory approvals; the number of potential customers in a target market; the existence of strategic alliances or
relationships; technological, regulatory or other developments in the industry; changes in the competitive climate in
which McLeodUSA operates; and the emergence of future opportunities. These and other applicable risks are
summarized under the caption "Risk Factors" in the McLeodUSA Annual Report on Form 10-K for the fiscal year
ended December 31, 2000, which is filed with the Securities and Exchange Commission.
CONTACT: McLeodUSA Incorporated, Cedar Rapids
Investor Contact:
Bryce E. Nemitz, 319/790-7800
or
Press Contact:
Bruce A. Tiemann, 319/790-7800
mcleodusa_ir@mcleodusa.com
Fax: 319/790-7767 |
