Agreement Enables IXC to Complete Western U.S. Fiber Ring; Expands ELI's
Network Reach and Nationwide Presence, Particularly in the Central and Eastern
U.S.
AUSTIN, Texas, April 12 /PRNewswire/ -- IXC Communications Inc.
(Nasdaq: IIXC) and Electric Lightwave Inc. (Nasdaq: ELIX) today announced a
20-year indefeasible right of use (IRU) fiber exchange agreement enabling both
companies to extend their networks into key markets.
The arrangement, valued at approximately $178 million, is comprised of
about 2,800 route miles of fiber, maintenance and collocation space to be
exchanged between the two companies.
According to the terms of the agreement, ELI will acquire, for
approximately $101 million over 20 years, IXC's dark fiber currently being
constructed from Salt Lake to Denver and Denver to Dallas and certain OC-48 to
OC-192 capacity. Under the reciprocal arrangement, IXC will acquire, for
approximately $77 million over 20 years, ELI's dark fiber currently in place
or under construction between Seattle-Portland-San Francisco and
Seattle-Spokane. In addition, both companies will lease additional segments
from each other as needed.
For IXC, the agreement helps close a fiber ring connecting Portland,
Sacramento, San Francisco, Los Angeles, Las Vegas, Salt Lake City and Boise,
with an additional leg to Seattle and on to Spokane. This new SONET ring
network will help to expand IXC's network to a total of 16,400 route miles by
end of year 1999. In addition, closing this fiber ring provides IXC's
customers in the Mid and Northwest regions of the U.S. with greater capacity
and increased reliability.
For Electric Lightwave, the combination of acquiring fiber and leasing
capacity from IXC greatly expands its network reach, enables the company to
more fully penetrate the Central and Eastern parts of the country and
strengthens its position as a Tier One Internet Provider. The exchange will
boost ELI's route miles to more than 7,500 by year-end 2000.
"This strategic agreement furthers the strong connection that exists
between IXC and Electric Lightwave, paving the road for future partnerships,"
said Mike Vent, president of IXC's network services. "It's another example of
innovative and progressive communications providers helping each other to
create world class network solutions."
"We view our relationship with IXC as a long-term strategic alliance,"
said David Sharkey, president and chief operating officer of Electric
Lightwave. "This fiber exchange substantially increases our network reach and
strengthens our position as a leading nationwide provider of integrated
communications solutions."
Electric Lightwave Inc. is a leading integrated communications provider of
enhanced data services, frame relay, ATM and Internet access solutions to
bandwidth intensive businesses and the growing e-commerce market. The company
offers long distance, data and prepaid services nationwide, with points of
presence in Atlanta, Chicago, Cleveland, Dallas, Denver, Las Vegas, Los
Angeles, New York, Palo Alto, Philadelphia, San Diego, San Francisco, San Jose
and Washington, D.C. As a full-service provider, the company offers local,
long distance, videoconferencing and high-speed broadband transport via an
expanding fiber optic network that interconnects major markets in the West.
Headquartered in Vancouver, Wash., the company employs 1,200 and earned
revenue of $101 million in 1998, up 65 percent from 1997. Electric Lightwave
Inc. is on the World Wide Web at http://www.eli.net and http://data.eli.net.
IXC's network-based delivery solutions are designed to address the speed
and capacity requirements of the global communications market. IXC offerings
include private line, fast packet (ATM and frame relay), Internet and long
distance switched and dedicated services. IXC Communications Inc. is at the
forefront of the industry's new class of emerging domestic and international
carriers that include Qwest and Level 3. IXC is a publicly traded company
listed on Nasdaq under the symbol IIXC. For more information, visit IXC's Web
site at http://www.ixc-comm.com.
Forward-Looking Information is Subject to Risk and Uncertainty: This
release contains forward-looking statements within the meaning of Section 21E
of the Securities Exchange Act of 1934. Forward-looking statements should be
read with the cautionary statements and important factors included in the
Company's Annual Report on Form 10-K for the year ended December 31, 1998 at
Item 7, "Management's Discussion and Analysis of Financial Conditions and
Results of Operations."
SOURCE Electric Lightwave Inc.
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Related links:
http://www.eli.net
Company News On-Call:
http://www.prnewswire.com/comp/117258.html or fax,
800-758-5804, ext. 117258
CONTACT:
IXC Media Contacts: Melissa Jackson, Senior
Manager, Public Relations of IXC Communications Inc.,
512-231-5247, mjackson@ixc-comm.com, or Erin Hadaway of
Copithorne & Bellows, 770-392-8614, erin.hadaway@cbpr.com, for
IXC Communications Inc.; or IXC Investor Contacts: Greta
Wiechman, Senior Manager, Investor Relations of IXC
Communications Inc., 888-267-9478, gwiechman@ixc-comm.com; or
Electric Lightwave Media Contacts: Susan Farmer, Public Relations
Manager, 360-816-4518, susan_farmer@eli.net, or Jack Hardy,
Corporate Communications Manager, 360-816-3602,
jack_hardy@eli.net, or Electric Lightwave Investor Contacts:
Fletcher Chamberlin, Director of Investor Relations,
360-816-3996, fletcher_chamberlin@eli.net
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