Monday December 20, 7:33 am Eastern Time
Company Press Release
FiberNet Enters Into Agreement With
Metromedia Fiber Network
Exchanges Common Stock For Dark Fiber
NEW YORK--(BUSINESS WIRE)--Dec. 20, 1999--FiberNet Telecom Group, Inc. (OTCBB:
FTGX - news) has signed an agreement with Metromedia Fiber Network Services, Inc., a
subsidiary of Metromedia Fiber Network (Nasdaq: MFNX - news), to lease Metromedia Fiber
Network's intra-city dark fiber in key markets during the next 20 years. The transaction
dramatically increases the total amount of dark fiber that FiberNet can access for its
metropolitan transport networks.
As part of the transaction, Metromedia Fiber Network exchanged its existing interest in one of
FiberNet's subsidiaries, Local Fiber, LLC. Additionally, FiberNet has agreed to provide
Metromedia Fiber Network with access to certain of FiberNet's commercial office buildings. As
partial consideration for these agreements, FiberNet issued to Metromedia Fiber Network 5
million shares of its common stock, representing approximately 10.1% of FiberNet's fully
diluted shares outstanding.
Michael S. Liss, president and chief executive officer of FiberNet, said, ``This strategic
agreement will strengthen FiberNet's New York City network and accelerate our expansion into
other national Tier 1 markets. Access to Metromedia Fiber Network's intra-city fiber network
enhances our position as the next-generation carriers' carrier for the last mile. By providing
Metromedia Fiber Network with access to our in-building fiber optic networks, we have created
the opportunity for our two companies to work together to create a new paradigm for
connectivity in major metropolitan areas.'
Howard Finkelstein, president and chief operating officer of Metromedia Fiber Network, said,
``We are pleased to have FiberNet as a customer and to offer them the opportunity to grow by
tapping into our expanding intra-city dark fiber network. The agreement between our two
companies also provides Metromedia Fiber Network's customers with access to fiber
distribution in the growing number of commercial buildings on Fibernet's network, expanding
Metromedia Fiber Network's capability to provide end-to-end fiber optic connectivity '
Neil |
