METROMEDIA FIBER NETWORK AND NEXTLINK
Sign $92 million Agreement
(NEW YORK CITY, February 24, 1998) -- Metromedia Fiber Network (NASDAQ: MFNX)
today announced the signing of a $92 million agreement giving NEXTLINK
Communications, Inc. (NASDAQ: NXLK) exclusive rights to multiple fibers and
innerducts along various Metromedia Fiber Network routes for a period of twenty
(20) years with two ten year renewals. Of the $92 million, $11,750,000 shall be
paid upfront to MFN and $80,250,000 shall be placed in escrow to be released as
delivery of the fibers and innerducts are completed during 1998 and 1999.
This contract represents the second major agreement between the two companies.
In June 1997 the companies signed an $11 million agreement giving NEXTLINK the
exclusive rights of use to multiple fibers along Metromedia Fiber Network's New
York Metropolitan Area network. Today's announcement increases the two
companies' relationship by adding further Metropolitan New York/New Jersey
routes, intra-city routes in Metropolitan Philadelphia and Washington, D.C. and
an inter-city link between New York and Washington, D.C.
"NEXTLINK was one of our first CLEC customers, and we are excited that they have
decided to expand upon this relationship," said Howard Finkelstein, President
Metromedia Fiber Network. "By constructing our network in vital Tier 1 cities,
Metromedia Fiber Network is enabling carriers such as NEXTLINK to expand their
own facilities and compete in the most lucrative telecommunications markets."
Under the new agreement, NEXTLINK will have rights of use for a network covering
more than 650 route miles. This expansive network will stretch from Manhattan to
White Plains, New York to Greenwich and Stamford in Connecticut, through Newark
and Northern, New Jersey. The network will also extend south from New York
through Philadelphia, Wilmington, Baltimore, and the Washington, D.C. area. To
facilitate network deployment, splice points will be placed approximately every
two miles through the metropolitan regions. This network will provide increased
access to many central and tandem offices along these routes, giving NEXTLINK a
strong competitive position in each of these markets.
"Expanding into additional tier 1 markets is a top business priority for
NEXTLINK in 1998" said George Tronsrue, NEXTLINK Chief Operating Officer. "This
agreement with MFN allows us to quickly and cost-effectively expand into new
markets to provide high quality NEXTLINK service to a significant number of new
customers."
Metromedia Fiber Network provides technologically advanced, high-bandwidth,
private, fiber optic communications infrastructure within major U.S. local
markets. The Company provides its infrastructure to communications carriers
competing in the local, long distance, wireless, and internet markets as well as
corporate/government customers requiring secure communications networks for the
transmission of large amounts of voice, data, and video, Headquartered in New
York City, MFN currently operates a fiber optic metropolitan area network in New
York and is developing local fiber optic infrastructure along strategic routes
in Chicago, Philadelphia and Washington D.C. and an inter-city link between New
York and Washington D.C. The Company has established a joint venture with Racal
Telecom of the United Kingdom and will begin providing service between the
United States and the United Kingdom in 1998. For more information about
Metromedia Fiber Network, please visit the Company's Web site at www.mmfn.com.
NEXTLINK Communications, Inc. was founded by Craig McCaw in 1994 to provide
local, long distance and enhanced communications services to commercial
customers. Headquartered in Bellevue, Wash., NEXTLINK currently operates 16
facilities-based networks providing switched local and long distance services in
26 markets in eight states.
This new release contains some matters which are "forward-looking statements".
The reader is cautioned that these forward-looking statements, such as the plans
to build and acquire networks in new areas, anticipation of revenues from
designated markets, and statements regarding the development of both of the
companies businesses, and other statements contained herein regarding matters
that are not historical facts, are only predictions. No assurance can be given
that the future results will be achieved; actual events or results may differ
materially as a result of risks facing both companies. Such risks include, but
are not limited to, successfully marketing services to current and new
customers, designing and constructing fiber optic networks, installing cable and
facilities, including switching electronics, and obtaining rights-of-way,
building access rights and any required governmental authorizations, franchises
and permits, all in a timely manner, at reasonable costs and on satisfactory
terms and conditions, as well as regulatory, legislative and judicial
developments that could cause actual results to differ materially from the
future results indicated; expressed or implied, in such forward-looking
statements.
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CONTACTS:
Metromedia Fiber Network
Media Relations Investor Relations
- --------------- ------------------
Judy Sweeney Eric Leeds
G.S. Schwartz & Co. G.A. Kraut Co. Inc.
212-725-4500 212-696-5600
NEXTLINK
MEDIA AND INVESTOR RELATIONS
TODD WOLFENBARGER 425.519.3946
OR 206.399.6770