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 ''
About FiberNet Telecom Group, Inc.
FiberNet Telecom Group, Inc. is a facilities-based carrier that designs, builds and operates intra-building and metropolitan area broadband networks in commercial, multi-tenant office buildings in national Tier 1 markets. FiberNet is pursuing a ''carriers' carrier'' marketing strategy, selling primarily to telecom carriers and other communications service providers. The Company has exclusive license agreements with national building owners for the construction, implementation and operation of in-building, fiber optic transmission networks that interconnect with the Company's metropolitan area backbone.
FiberNet has lit four strands of fiber on its Metropolitan Area backbone covering Downtown and Midtown Manhattan, with extensive plans to expand in New York City and other national markets. The core FiberNet backbone will utilize a diversely routed, self-healing SONET ring architecture inside and outside of its on-net buildings. This network currently terminates into 5 Class-A high-rise office buildings that are either equipped or are being equipped with the FiberNet In-Building Network; and into 60 Hudson Street, a premier Manhattan carrier hotel with global connectivity. FiberNet has also launched its primary Network Operations Center at its facility in 60 Hudson Street. Additionally, FiberNet plans to build out additional carrier hotel sites in New York and other metropolitan markets.
FiberNet enables the seamless transmission of data, voice and video over a 100% fiber optic, fully redundant, self-healing SONET network that extends from customer premises in office buildings to a carrier interconnection point. By extending carrier-class backbone reliability directly to the customer premises, FiberNet is seeking to set a new carrier standard for the local loop. Please visit FiberNet's web site at ftgx.com.
About Metromedia Fiber Network, Inc.
Metromedia Fiber Network is building metropolitan fiber optic infrastructure in the local loop in strategic top tier markets, enabling technologically sophisticated organizations to implement the latest data, video, Internet and multimedia applications. By offering virtually unlimited, unmetered bandwidth at a fixed cost, Metromedia Fiber Network is eliminating the bandwidth barrier and redefining the way broadband capacity is sold. In addition to its current nationwide expansion in 50 major cities in the United States and Canada, Metromedia Fiber Network is entering the international market with fiber optic network builds throughout Europe.
Metromedia Fiber Network recently acquired AboveNet Communications, the architect of the global one-hop network and the leading provider of Internet connectivity and co-location solutions for high-bandwidth and business-critical applications. The combined company will facilitate the explosive growth of e-commerce and advanced Internet applications by delivering secure, reliable and scalable optical networks to Internet content and service providers, carriers and enterprise users, worldwide. For more information about Metromedia Fiber Network, please visit the company's Web site at mmfn.com.
FIBERNET NOTE: This press release may contain forward-looking statements. Any and all of our forward-looking statements in this press release or in any other public statements we make may turn out to be wrong. They can be affected by inaccurate assumptions we might make or by known or unknown risks and uncertainties, including, without limitation, the following: availability of capital; the risks associated with significant indebtedness; the dependence on key personnel of the Company; the demand for telecom services; substantial competition; regulatory developments; and other factors affecting the Company's prospects described in the Company's most recent Annual Report on Form 10-KSB filed with the Securities and Exchange Commission for the fiscal year ended December 31, 1998, Report on Form 10-QSB filed for the interim period ended September 30, 1999, and in its other public filings.
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Contact:
FiberNet Telecom Group, Inc.
Michael Liss or Trey Farmer
212/405-6200 |
