EXHIBIT 99.1
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LOGO - MFN
NEWS RELEASE
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Corporate Headquarters 360 Hamilton Avenue White Plains, NY 10601
914.421.6700 www.mfn.com
FOR IMMEDIATE RELEASE
METROMEDIA FIBER NETWORK, INC.
ANNOUNCES SEC INVESTIGATION
NEW YORK, JUNE 13, 2002 - Metromedia Fiber Network, Inc.
announced today that it has been advised that the staff of the Securities and
Exchange Commission (the "SEC") has commenced a formal investigation into the
company's past accounting practices that led to the previously announced
expected restatement of the company's operating results for each of the
quarterly periods included in the fiscal year ended December 31, 2001. As
previously announced, the expected restatements involve revenue/sales credit
recognition, timing of expense recognition and non-cash lease accounting and
purchase accounting issues. The company has cooperated fully with the SEC in the
investigation, and will continue to do so.
ABOUT METROMEDIA FIBER NETWORK
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MFN is the leading provider of digital communications infrastructure solutions.
The Company combines the most extensive metropolitan area fiber network with a
global optical IP network, state-of-the-art data centers, award-winning managed
services and extensive peering relationships to deliver fully integrated,
outsourced communications solutions to Global 2000 companies. The all-fiber
infrastructure enables MFN customers to share vast amounts of information
internally and externally over private networks and a global IP backbone,
creating collaborative businesses that communicate at the speed of light.
Customers can take advantage of MFN's complete, end-to-end solution or select
individual components to complement their existing infrastructures. By leasing
MFN's metropolitan and regional fiber, customers can create their own, private
optical network with virtually unlimited, un-metered bandwidth at a fixed fee.
For more reliable, secure and high-performance Internet connectivity, customers
can use MFN's private IP network to communicate globally without ever touching
the public-switched network. Moreover, MFN's comprehensive managed services
enable companies to create a world-class Internet presence, optimize complex
sites and private optical networks, and transform legacy applications, all with
a single point of contact.
PAIX.net, Inc., a subsidiary of MFN and the original neutral Internet exchange,
offers secure, Class A co-location facilities where ISPs and other
Internet-centric companies can form public and private peering relationships
with each other, and have access to multiple telecommunications carriers for
circuits within each facility.
On May 20, 2002, Metromedia Fiber Network, Inc. and most of its domestic
subsidiaries commenced voluntary Chapter 11 cases in the United States
Bankruptcy Court for the Southern District of New York.
One network. One infrastructure. One source.
For more information on MFN, please visit our Web site at www.mfn.com
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THIS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS PURSUANT TO THE SAFE HARBOR
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. THESE
STATEMENTS INVOLVE RISKS AND UNCERTAINTIES, INCLUDING THE IMPLEMENTATION OF THE
PROPOSED RESTRUCTURING AND BANKRUPTCY COURT APPROVAL, AND THE RISKS DETAILED
FROM TIME TO TIME IN THE COMPANY'S FILINGS WITH THE SECURITIES AND EXCHANGE
COMMISSION. FURTHER INFORMATION ON FACTORS THAT COULD AFFECT THE COMPANY'S
FINANCIAL AND OTHER RESULTS IS INCLUDED IN THE COMPANY'S FORMS 10-Q, 10-K AND
S-3, FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.
MEDIA RELATIONS: INVESTOR RELATIONS:
Kara Carbone Marty Cohen
Metromedia Fiber Network, Inc 212-606-4389
914-683-6386
kara.carbone@mfn.com