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

To: Jason Cogan who wrote (5427)	4/24/1998 7:17:00 AM
From: ziad daoudi	Read Replies (1) \| Respond to of 12468

WinStar Communications Sells 10% Stake in Its New Media Subsidiary to Institutional Investors BusinessWire, Friday, April 24, 1998 at 06:48 NEW YORK--(BUSINESS WIRE)--April 24, 1998-- $10 Million Proceeds Will Be Used To Support WinStar New Media's Expansion WINSTAR COMMUNICATIONS, INC. (NASDAQ-WCII) today announced that it has sold a 10% equity stake in WinStar New Media, its convergence-driven media and information services subsidiary, to a group of institutional investors led by Tudor Investment Corporation for $10 million. WinStar New Media will use the capital to finance the continuing expansion of its businesses through internal growth and acquisitions. In addition to Tudor, a fund management and proprietary trading organization, other institutional investors in the group include Wheatley Partners, L.P. William J. Rouhana, Jr., Chairman and Chief Executive Officer of WinStar Communications, Inc., stated that "The $10 million placement furthers our strategy to independently finance WinStar New Media, reflects the substantial value that has been created by WinStar New Media over the short period of its existence, and is the latest demonstration of New Media's ability to attract capital, as it comes on the heels of its recently-established $15 million revolving credit facility with ING Capital." "We're pleased to draw upon the expertise and extensive network of new investors who are known for their success both in the traditional and new media arenas. They bring a wealth of experience and relationships that will be of enormous help to us in identifying and evaluating appropriate businesses to add to our growing enterprise," commented Stuart B. Rekant, President, WinStar New Media. Robert Forlenza, Managing Director of the general partner of Tudor Private Equity Fund L.P., added "Tudor is always on the look-out for investment opportunities in new media businesses that have the right mix of management strength, core assets, and a forward-thinking expansion strategy. WinStar New Media is competitively positioned for growth in the online markets, as well as in the more traditional media. New Media also is able to leverage WinStar's telecommunications sales force and customer base to support its extension into emerging interactive businesses." WinStar New Media produces and markets business information and entertainment content targeting the business, educational and consumer markets. New Media's added-value content differentiates WinStar from other telecommunications companies and strengthens customer loyalty by offering services that take advantage of the broadband connectivity the company supplies. In particular, WinStar New Media is expanding its Internet business information operations to provide a wide range of products and services geared to the needs of small and medium size businesses. Through its WinStar Telebase subsidiary, WinStar New Media has over 14 years of experience providing premium, customized business content from more than 1000 brand name sources of information to online networks such as AOL (Dun & Bradstreet@AOL), CompuServe (IQuest), and Prodigy (Prodigy Reference Center). WinStar New Media's @SportsFan Radio on AOL (Keyword:SportsFan) continues to be a popular featured sports area. WinStar Communications, Inc. is a national local communications company, serving business customers, long distance carriers, fiber-based competitive access providers, mobile communications companies, local telephone companies and other customers with broadband needs. The company provides its Wireless Fiber(SM) services using its licenses in the 38 GHz spectrum. The company also provides long distance, Internet and information services. WinStar is a registered trademark, and Wireless Fiber(SM) is a service mark of WinStar Communications, Inc. CONTACT: Financial Community: Press: Frank Jepson Beth-Ellen Keyes SVP, Capital Market Relations (212) 584-4098 (212) 584-4021 KEYWORD: NEW YORK INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS TELECOMMUNICATIONS COMED Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: businesswire.com Copyright 1998, Business Wire Companies or Securities discussed in this article: Symbol Name NASDAQ:WCII Winstar Communications

To: Jason Cogan who wrote (5427)	4/24/1998 9:24:00 AM
From: SteveG	Respond to of 12468

<..After all, what's a money losing access provider worth anyway?..> $11.3 billion biz.yahoo.com [...and at the end of 99, WCII will have at least twice the plant at twice the margins]

To: Jason Cogan who wrote (5427)	4/24/1998 9:48:00 AM
From: Steven Bowen	Respond to of 12468

Jason, it's also important to realize that of the buildings WinStar is targeting, only about 25% of them have another form of broadband communication available to them. Most buildings don't have fiber, and never will (or when they do, WinStar will be worth $300 per share). Vogel estimates that there are 700,000 office buildings in the US and 2/3's of them are uneconomical for a fiber based CLEC to reach. Also, you must realize that with the new PMP technology, WinStar can connect a new office building for only $4000. A fiber based CLEC will need to invest $100,000 to connect a new building to their network. Some other numbers; It took Teleport (worth $11 billion, remember) 12 years of construction to reach 4,638 buildings. After 4 years, WinStar should reach 8,000 buildings, with better margins. Teleport (worth $11 billion, remember) added 144,145 access lines during 1997. WinStar will add nearly 200,000 during 1998. Well, we could go on and on with numbers. What it all comes down to is execution; if WinStar management can execute, there is no question this company will be a huge sucess. What we've all watched for the last few years is that management continues to execute and exceeds all projections.