WCII-
I do hold this stock, this is why...in at 33 1/2
Thursday May 27, 6:00 am Eastern Time
Company Press Release
WinStar Wins Additional $40 Million AboveNet Contract for
a Total of $80 Million
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.
Contact:
WinStar Communications, New York
Financial Community: |
