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

To: LzzrdKing who wrote (8812)	10/22/1998 7:07:00 AM
From: ziad daoudi	Read Replies (3) \| Respond to of 12468

NEW YORK--(BUSINESS WIRE)--Oct. 22, 1998--WINSTAR COMMUNICATIONS, INC. WCII and LUCENT TECHNOLOGIES LU today announced that they have entered into a long term strategic relationship to build out WinStar's fixed wireless broadband telecommunications network in major domestic and international markets. Lucent will provide world class technology, network design, integration and buildout services and the vast majority of the communications hardware and software for WinStar's global network. Over the life of the five-year agreement, Lucent will also provide up to $2 billion in equipment financing to fund the buildout of the world's first global end-to-end broadband network. WinStar may draw this financing in tranches not to exceed $500 million at any one time in accordance with mutually agreed upon terms. Through its Wireless FiberSM services, WinStar's network provides customers with a single, reliable source of local and long distance phone service, as well as a full array of high speed data, Internet and information services. The agreement gives WinStar, which was already fully funded to complete its 40 market buildout by the end of 1999, additional resources which will allow it to complete the national deployment of its wireless broadband network ahead of schedule. These resources will also enable WinStar to increase the number of U.S. cities to which it will bring its network, and to build networks internationally. William J. Rouhana, Jr., Chairman and Chief Executive Officer of WinStar, said, "This is a defining moment for WinStar. Lucent's major commitment of expertise and financing, combined with the overwhelming speed-to-market and cost advantages of WinStar's business model, clearly propels us to the top of the competitive local exchange carrier industry. With Lucent's network knowledge behind us, we are positioned to be the first competitive carrier to create a nearly ubiquitous end-to-end broadband network in the top 100 world markets. "WinStar was already fully financed to build out its 40 city plan and achieve positive EBITDA by the year 2000," Rouhana continued. "We are now at a new level, with enough capital to achieve positive net income and control over when we build out our network in up to 100 cities around the world. We now have the opportunity to aggressively plan for our expansion into the top 50 domestic markets and into the international marketplace as well." Carly Fiorina, group president of Lucent's Global Service Provider business, said, "We are proud and excited that WinStar selected Lucent to design and build the kind of feature-rich network that will enable it to serve its customers better. WinStar is revolutionizing the way that businesses receive and use broadband telecommunications services and we are excited about furthering that revolution through this strategic relationship. This complete network solution will showcase the breadth of Lucent's product lines, the value of Bell Labs innovations and our unmatched expertise in helping customers design, build and turn up their networks quickly and profitably." Nathan Kantor, President and Chief Operating Officer of WinStar, said, "With its world class technology, scale, and state-of-the-art expertise, Lucent is the most prestigious and desirable company with which to have this kind of strategic relationship. WinStar and Lucent will work hand in hand in every aspect of our network buildout. Lucent has the broad resources necessary to ensure that we maintain the highest standards of quality and reliability throughout our expansion, which will enable us to increase our focus on building the customer base and to achieve national ubiquity faster than anyone thought possible." Under the agreement: -- Lucent will provide network design, integration and buildout