<A> WinStar Wins Additional $40 Million AboveNet Contract for a
Total of $80 Million
biz.yahoo.com
Highly Profitable On-Net Contract Will Boost EBITDA
NEW YORK--(BUSINESS WIRE)--May 27, 1999-- WinStar Providing High-Speed, Long-Haul Backbone Services
for AboveNet Cross-Country Network
WINSTAR COMMUNICATIONS, INC. (NASDAQ: WCII - news) today announced it was awarded a $40 million, three-year
extension of its existing broadband backbone service contract with San Jose-based ABOVENET COMMUNICATIONS, INC.
(NASDAQ: ABOV - news), a leading provider of Internet connectivity solutions. The contract extension brings the total value of the
agreement to $80 million over six years. WinStar was awarded the original contract in April 1998.
''This is a great endorsement for WinStar and, because we are carrying traffic over our own high-capacity backbone network,
approximately 85% of the revenue generated from the contract will go directly to EBIDTA,'' said Nathan Kantor, president and chief
operating officer of WinStar. ''AboveNet also benefits because they receive better service over our nationwide backbone and can
share in our cost advantage.''
''We are pleased to strengthen our relationship with WinStar,'' said Dave Rand, CTO of AboveNet. ''We provide WinStar with fast,
reliable and high-quality IP transit services for their customers, while we receive clear-channel circuits from them that allow us to
further extend our network. This partnership is another step in improving Internet performance and connectivity for all users.''
Under the agreement, WinStar provides cross-country circuits and local loops to connect AboveNet's high-capacity data centers
throughout the U.S. WinStar supplies AboveNet with multiple clear channel circuits, ranging in capacity from DS-3 to OC-12. These
circuits have been installed between San Francisco, CA, Chicago, IL, and Washington, D.C.; San Francisco, CA, and Portland, OR;
and San Francisco and Los Angeles. WinStar is currently installing upgraded, higher capacity circuits between several of these cities.
AboveNet Communications, Inc. is a leading provider of Internet connectivity and co-location solutions for high bandwidth and
business-critical applications. AboveNet, headquartered in San Jose, California, is the architect of the Internet Service Exchange(TM)
(ISX(TM))--a world class network that provides co-location services and Internet connectivity for Content Providers and ISPs. The
AboveNet Global One-Hop Network(TM) is designed to deliver fast, scalable and reliable connections to the Internet and improves the
Internet experience for all end-users. With its Tier 1 status and ISO 9002 certification, AboveNet is seeking to serve the global
community of the Internet. For more information on AboveNet and its service offering call 800/475-2733 or visit the company's Web
site at above.net.
WinStar Communications, Inc. is a pioneer in providing business customers with broadband communications services, including local
and long distance phone service, as well as high-speed Internet access, data and information services. WinStar provides these
Wireless Fiber(SM) services in more than 30 U.S. markets over its own local broadband networks, using its licenses in the 28 and 38
GHz spectrum, which are connected to the company's nationwide fiber-optic network. In addition, the company offers Wireless Fiber
services in one market outside of the U.S. In the past year, WinStar has become one of the largest Internet companies in the U.S.
Recently, the company announced a destination Web site for businesses, Office.com(SM), a service from WinStar.
The statements contained in this press release with respect to AboveNet, that are not purely historical are forward looking statements
within the meaning of section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the company's
expectations, beliefs, hopes, intention or strategies regarding the future. Factors that could cause or contribute to such differences
include risks related to intense competition, the emerging market for co-location and connectivity services, risks related to
International expansion, the uncertainty of the acceptance of AboveNet's services, network scalability and other factors and risks
discussed in the company's registration statement on form S-1, as amended, initially filed with the Securities and Exchange
Commission on September 10, 1998 and other reports filed from time to time with the Securities Exchange Commission.
Except for any historical information contained herein, the matters discussed in this press release with respect to WinStar contain
forward-looking statements that involve risks and uncertainties, which are described in WinStar's SEC reports, including the 10-K for
the period ended December 31, 1998, and the 10-Q for the period ended March 31, 1999.
AboveNet, Internet Service Exchange and ISX are trademarks of AboveNet Communications, Inc. All other company or brand names
may be trademarks of the respective companies with which they are associated.
WinStar is a registered trademark, and Wireless Fiber and Office.com are service marks of WinStar Communications, Inc.
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also - excerpted from CBSMArketwatch - from the NBMO/BOA telecom conference in NYC yesterday (addressing his former troops):
cbs.marketwatch.com
Bill Vogel, senior vice president of New York-based WinStar, said the wireless networking specialist is on track to notch $100 million in revenue this year for broadband services, up 40 percent. The company will offer services in about 8,000 buildings by the end of the year, up from 4,800 from last year. It'll soon cover about 75 percent of the U.S. business market, he said. |
