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Technology Stocks : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: Labrador who wrote (12430)	4/16/2001 9:51:14 PM
From: Bruce Byall	Read Replies (2) \| Respond to of 12468

Winstar Announces Material Financial Developments NEW YORK--April 16, 2001--WINSTAR COMMUNICATIONS, INC. (NASDAQ: WCII) today announced the Company did not make aggregate interest payments of approximately $75 million on its senior debt securities, which were due on April 16, 2001. Under the terms of this debt, the Company has 30 days from the payment date to make the required payment in order to cure this default. Additionally, Lucent Technologies has declared a default under the terms of the Company's facility with Lucent, which Winstar disputes. Defaults by the Company under the Lucent agreements and/or senior notes trigger cross defaults under other material existing obligations and agreements to which the Company is a party, including the Company's bank facility. The Company continues to provide all services to its customers, and is taking all appropriate steps to continue to do so. The Company has retained The Blackstone Group to advise it on restructuring its debt, and the Company is considering all appropriate actions, including the possibility of a reorganization under Chapter 11 of the U.S. Bankruptcy Code, in order to avoid the significant adverse consequences which the above described defaults could cause. As a result of these developments, the Company will not file its Form 10-K on a timely basis. Statements in this release contain forward-looking information about management expectations, strategic objectives, business prospects, anticipated financial or operational performance, and other similar matters. These statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties. A variety of factors, many of which are beyond Winstar's control, could cause actual results and experience to differ materially from the expectations expressed in these statements. These factors include, but are not limited to, volatility in the financial and capital markets and the impact on access to and the terms of additional capital, actions and initiatives by current and potential competitors, events or circumstances impacting major customers, suppliers or financing sources, the effect of current and future legislation or regulation, the ability of the company to design and construct its broadband network and to sell and provision services, and additional factors described in the reports filed by Winstar with the Securities and Exchange Commission (SEC), including Winstar's Annual Report on Form 10-K for the year ended December 31, 1999, which is available on the SEC's Web site, at www.sec.gov. Winstar undertakes no responsibility to update or revise any statements in this release, whether as a result of new information, future events or otherwise. Winstar is a registered trademark of Winstar Communications, Inc. CONTACT: Winstar Communications, Inc., New York Financial Community: Daniel Briggs, 212/792-9032 dbriggs@winstar.com or BSMG Worldwide, New York Press: Peter Duda, 212/792-9025 corpcomm@winstar