Exhibit 99.1
FOR IMMEDIATE RELEASE FOR MORE INFORMATION CONTACT:
July 8, 1999 Media: Patricia Cameron (318) 388-9674
patricia.cameron@centurytel.com
Investors: Jeffrey S. Glover (318) 388-9648
jeff.glover@centurytel.com
Spectra: Eddie Arnold (202) 256-3230
arnolde@tvratings.com
CenturyTel participates in joint venture to buy Missouri access lines from GTE
Monroe, LA. . .CenturyTel, Inc. (NYSE Symbol: CTL) announced today that it has
entered into a strategic joint venture to purchase approximately 116,000
telephone access lines (based on year-end 1998 figures) and related local
exchange assets in Missouri from GTE. The joint venture consists of CenturyTel,
Spectronics Corporation, a Georgia-based African American-owned full-service
telecommunications contractor; Local Exchange Carriers (LEC), LLC, a private
equity investment company based in Kansas City, Missouri; and other African
American co-investors.
The newly formed company, Spectra Communications Group, LLC, will be controlled
by Spectronics and the other co-investors who will own 100 percent of Spectra's
outstanding common stock and will elect a majority of the board of directors.
CenturyTel will make a preferred equity investment in the company, will have
board representation, participate in Spectra's significant management decisions
and provide Spectra operational, financial and managerial support.
"We are pleased with the opportunity to partner with Spectronics, LEC and the
other co-investors to serve customers in Missouri," said Glen F. Post, III,
president and chief executive officer of CenturyTel. "Participating in this
venture allows us to further advance our clustering strategy. The properties are
near our operations in Arkansas, which will soon become our second largest state
in terms of access lines." CenturyTel announced an agreement to purchase GTE's
local exchange assets in Arkansas last week.
"Over the past three years, GTE has invested more than $105 million to upgrade
these networks in Missouri. The properties encompass 107 telephone exchanges
which include 100 percent digital plant with more than 700 route miles of fiber.
Due to the quality of the facilities, we believe we will soon be able to provide
additional services such as Internet, voice mail and broader caller ID
availability," Post said.
Dorothy Rollins, president and chair of Spectra Communications Group, said
"Spectronics Corporation's success in delivering telecommunications services
gave us the opportunity to move forward into new, exciting areas. When we began
thinking about where we wanted to take our business, providing service to the
consumer made perfect sense. Our partnership with CenturyTel will help
accomplish this vision."
GTE employees who serve these areas will be offered positions with Spectra.
Customers will see no changes in their area codes, telephone numbers or local
calling areas. At this time, we anticipate that rates will remain the same as
GTE's current rates.
Spectra intends to finance the asset purchase with a combination of debt
financing and the parties' equity contributions. Approval of the sale is
required by the Missouri Public Service Commission, the Federal Communications
Commission, the Federal Trade Commission and the U.S. Department of Justice. The
transaction is expected to close in first quarter 2000.
In addition to historical information, this release includes certain
forward-looking statements that are subject to uncertainties that could cause
the Company's actual results to differ materially from such statements. Such
uncertainties include but are not limited to: changes in prevailing interest
rates or in the capital markets; the effects of ongoing deregulation in the
telecommunications industry; the effects of greater than anticipated competition
in the Company's markets; possible changes in the demand for the Company's
products and services; the Company's ability to successfully introduce new
offerings on a timely and cost-effective basis; the risks inherent in rapid
technological change; the Company's ability to effectively manage its growth,
including integrating newly acquired properties into the Company's operations;
the success and expense of the remediation efforts of the Company and its
vendors in achieving year 2000 compliance; any similar efforts, changes or other
factors impacting the GTE properties to be purchased by Spectra; and the effects
of more general factors such as changes in overall market or economic condition
or in legislation, regulation or public policy. These and other uncertainties
related to the Company's business are described in greater detail in the
Company's Annual Report on Form 10-K for the year ended December 31, 1998.
CenturyTel, Inc. provides integrated communications services including local
exchange, wireless, long distance, Internet access and security monitoring
services to more than two million customers in 21 states. The company,
headquartered in Monroe, La., is publicly traded on the New York Stock Exchange
under the symbol CTL. CenturyTel is the ninth largest local exchange telephone
company, based on access lines, and the 10th largest cellular company, based on
population equivalents owned, in the United States. Visit CenturyTel's corporate
website at (www.centurytel.com)