LEVEL 3 COMMUNICATIONS ISSUES RESPONSE TO BLOOMBERG ARTICLE
BROOMFIELD, Colo., November 8, 2001 - The following statement may be attributed to Level 3 Communications, Inc. (Nasdaq:LVLT) Chief Executive Officer, James Q. Crowe:
"In response to a number of inquiries, we want to clarify what we believe is a misleading article that appeared yesterday on the Bloomberg News Service.
"The article stated, among other things, that we may sell our holdings in RCN Corp. (Nasdaq:RCNC). The article was prepared by a reporter who attended a speech delivered by one of our executives, who cited RCN only as an example from our list of non-core holdings.
"We have stated on a number of occasions that we would consider the possible monetization of certain of our non-core assets, which include holdings in public companies, wholly owned subsidiaries or businesses and excess real estate holdings. We have made no statement beyond that, and have not identified which specific non-core assets that we would actively consider.
"Regrettably, this article may have caused concern and confusion in the market. We want to make clear that we currently have no plans to monetize our holdings in RCN and are not actively considering such action. Additionally, we believe that RCN is undervalued at its current trading levels.
"Secondly, the article stated that we had taken on $8 billion in debt but omitted the fact that our debt has been reduced to approximately $6 billion, clearly leaving the impression that the company is carrying substantially more debt than is the case. At a time when every company's financial position is under scrutiny, such an omission is no small matter.
About Level 3 Communications
Level 3 (Nasdaq:LVLT) is a global communications and information services company offering a wide selection of services including IP services, broadband transport, colocation services and the industry's first Softswitch based services. Its Web address is www.Level3.com.
Forward Looking Statement
Some of the statements made by Level 3 in this press release are forward-looking in nature. Actual results may differ materially from those projected in forward-looking statements. Level 3 believes that its primary risk factors include, but are not limited to: changes in the overall economy relating to, among other things, the September 11 attacks and subsequent events, substantial capital requirements; development of effective internal processes and systems; the ability to attract and retain high quality employees; technology; the number and size of competitors in its markets; law and regulatory policy; and the mix of products and services offered in the company's target markets. 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 release should be evaluated in light of these important factors. |
