Exhibit 99.1
[Logo]
1025 Eldorado Boulevard
Broomfield, Colorado 80021
www.Level3.com
NEWS RELEASE
Level 3 contacts:
Media: Josh Howell Investors: Robin Grey
720-888-2517 720-888-2518
Arthur Hodges Sandra Curlander
720-888-6184 720-888-2501
Jennifer Daumler
720-888-3356
Level 3 Subsidiary Files For Initial Public Offering
Of Information Services Group
Group Includes Software Spectrum And (i)Structure Subsidiaries
BROOMFIELD, Colo., May 13, 2005 -- Level 3 Communications, Inc. (Nasdaq:LVLT)
announced today that its wholly owned subsidiary - Technology Spectrum, Inc. -
has filed a registration statement with the Securities and Exchange Commission
to enable the sale of that subsidiary's common stock to the public in an initial
public offering.
Technology Spectrum is the principal holding company for Level 3's information
services group. Upon completion of the offering, Technology Spectrum's
subsidiaries will include Software Spectrum, a direct marketer of software to
corporations based in Plano, Texas, and (i)Structure, a provider of IT
infrastructure management services to enterprises.
Technology Spectrum would receive no proceeds in this offering. Another
subsidiary of Level 3's - Level 3 Financing, Inc. - is the sole selling
stockholder in the offering. The net proceeds to Level 3 Financing from the
offering would be used for general corporate purposes.
The registration statement relating to these securities has been filed with the
Securities and Exchange Commission but has not yet become effective. These
securities may not be sold, nor may offers to buy be accepted, prior to the time
the registration statement becomes effective. This press release shall not
constitute an offer to sell or a solicitation of an offer to buy, nor shall
there be any sale of these securities in any state in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state. The offering will be made only by
means of a preliminary prospectus.
Merrill Lynch & Co. is acting as the sole book-running manager of the offering.
A copy of the prospectus relating to these securities may be obtained, when
available, from Merrill Lynch & Co., Prospectus Department, 4 World Financial
Center, New York, NY 10080; or by calling 212-449-1000.
About Level 3 Communications
Level 3 (Nasdaq:LVLT) is an international communications and information
services company. The company operates one of the largest Internet backbones in
the world, is one of the largest providers of wholesale dial-up service to ISPs
in North America and is the primary provider of Internet connectivity for
millions of broadband subscribers, through its cable and DSL partners. The
company offers a wide range of communications services over its 23,000-mile
broadband fiber optic network including Internet Protocol (IP) services,
broadband transport and infrastructure services, colocation services, and
patented softswitch managed modem and voice services.
The company offers information services through its subsidiaries, Software
Spectrum and (i)Structure. For additional information, visit their respective
Web sites.
The Level 3 logo is a registered service mark of Level 3 Communications, Inc. in
the United States and/or other countries. Level 3 services are offered by wholly
owned subsidiaries of Level 3 Communications, Inc.
Forward-Looking Statement
Some of the statements made by Level 3 in this press release are forward-looking
in nature. Actual results may differ materially from those projected in
forward-looking statements. Level 3 believes that its primary risk factors
include, but are not limited to: developing new products and services that meet
customer demands and generate acceptable margins; increasing the volume of
traffic on Level 3's network; overcoming the softness in the economy given its
disproportionate effect on the telecommunications industry; integrating
strategic acquisitions; attracting and retaining qualified management and other
personnel; successfully completing commercial testing of new technology and
information systems to support new products and services, including voice
transmission services; ability to meet all of the terms and conditions of our
debt obligations; overcoming Software Spectrum's reliance on financial
incentives, volume discounts and marketing funds from software publishers;
reducing downward pressure of Software
Spectrum's margins as a result of the use of volume licensing and maintenance
agreements; and reducing rate of price compression on certain of the Company's
existing transport and IP services. Additional information concerning these and
other important factors can be found within Level 3's filings with the
Securities and Exchange Commission. Statements in this release should be
evaluated in light of these important factors.