DD:
Ticker: LVLT
News release:
Level 3 Communications Acquires Leading Business Internet Service Provider
Gains Presence in Key UK Market
OMAHA, Neb., Jan. 14 /PRNewswire/ -- Level 3 Communications, Inc. (Nasdaq: LVLT - news)
announced today that it has acquired BusinessNet Limited, a leading London-based Internet
Service Provider (ISP) in a largely stock-for-stock deal.
''The acquisition of BusinessNet significantly accelerates our entry into the UK market,'' said
Colin Williams, Level 3 International's chief executive officer. ''They have an established market
focus on the financial community, specifically through their IntraCity™ network, offering
access to financial and other Internet Protocol (IP) oriented information services.
''The Internet continues to be the fastest growing segment of the telecommunications market
especially in the corporate sector. Companies are increasingly using Internet and Extranet
platforms to reach their customers,'' said Williams. ''These platforms require levels of capacity
that the networks Level 3 is constructing are designed to provide. BusinessNet can help us
meet and grow this demand. BusinessNet also brings to Level 3 an experienced team that
understands both Internet technologies and the UK's competitive telecommunications market.''
Dr. Sydney O'Hara, chairman of BusinessNet said, ''Coupling Level 3's global reach, network
capability and proven management team with our experienced staff, client base and services
focused solely on the business community offers a unique opportunity to expand our London
customer base to a global field. We are confident that, together with Level 3, we can revolutionize
IP-based services in the UK.''
The acquisition of BusinessNet in the UK follows the purchase by Level 3 of ISP miknet Internet
Based Services, GmbH in Frankfurt, Germany in September of last year. Williams adds: ''Like miknet,
BusinessNet shares Level 3's focus on bringing Internet service to business users. They share our
vision of the power and efficiency of an IP-based communications network.''
Level 3 has announced that it is building an international network based on IP technology and that
the network will encompass networks in the United States, Europe, and Asia. The company has
obtained access on cross-Atlantic cables and has joined with several other telecommunications
companies to build a cross-Pacific cable. It is already providing services in the US and expects to
begin providing services in Europe in the first quarter of 1999.
About BusinessNet
BusinessNet is a leading provider of IP based services in the City of London. Services provided
include Internet access, secure intranets, interactive voice and video services as well as media
streaming. In addition to traditional ISP services, BusinessNet also offers access to financial and
other IP oriented information services, which are available through the BusinessNet IntraCity™ network.
Founded in 1995, BusinessNet has over 300 corporate clients, and operates from four centers in the
City of London.
About Level 3 Communications, Inc.
Level 3 Communications, Inc., is a communications and information services company that is building
the first international network optimized for Internet Protocol technology. The Level 3 Network will
combine both local and long distance networks, connecting customers end-to-end across the U.S.
and in Europe and Asia. The company expects to complete the U.S. inter-city portion of the network
during the first quarter of 2001. In the interim, Level 3 has leased a national network over which it
began to offer services in the third quarter of 1998. Level 3 will provide a full range of communications
services (including local, long distance, international and Internet services). Level 3's common stock is
traded on The Nasdaq National Market (U.S.) under the symbol LVLT. Its World Wide Web address is
www.Level3.com.
The statements made by Level 3 in this press release may be 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: substantial capital requirements; development
of effective internal processes and systems; the ability to attract and retain high quality employees;
changes in the overall economy; technology; the number and size of competitors in its markets; law
and regulatory policy; and the mix of products and services offered in its target markets. Additional
information concerning these and other potential 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.
SOURCE: Level 3 Communications, Inc.
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