EXHIBIT 99.1
BELLSOUTH AND QWEST ANNOUNCE STRATEGIC
RELATIONSHIP TO PROVIDE NEXT-GENERATION DIGITAL
COMMUNICATIONS SERVICES; BELLSOUTH TAKES 10 PERCENT STAKE IN QWEST
ATLANTA, April 19 /PRNewswire/ -- BellSouth Corporation (NYSE: BLS - news) and
Qwest Communications International Inc. (Nasdaq: QWST - news) today announced a
strategic relationship that will significantly accelerate the companies' efforts
to provide a full set of integrated digital data, image and voice communications
services to their customers. The relationship includes three basic components:
* Qwest and BellSouth immediately begin coordinated marketing of
services, with Qwest offering its full portfolio of data
networking, Internet and voice services. BellSouth will offer
a full complement of local networking services.
* Once BellSouth is allowed into the long distance business, the
companies will jointly develop and deliver a comprehensive set
of end-to-end, high-speed data, image and voice communications
services to business customers, with a heavy emphasis on the
fast-growing broadband and Internet-based data services.
BellSouth will assume retail leadership with customers based
in the South; Qwest will provide support resources to assist
BellSouth in the region as required with the primary emphasis
of the Qwest sales force being focused on the rest of the
country.
* And finally, as part of the agreement, BellSouth will invest
approximately $3.5 billion at $94.50 a share for about a 10
percent equity stake in Qwest. Qwest will issue 20,350,000 new
shares to BellSouth in exchange for approximately $1.93
billion in cash. At BellSouth's request, Qwest's principal
stockholder, Anschutz Company, will sell 16,650,000 shares to
BellSouth for approximately $1.57 billion. This will reduce
Anschutz Company's ownership interest in Qwest to
approximately 39 percent.
"This is a significant step in our objective of becoming the premier data
communications provider to our customers," said Duane Ackerman, Chairman and CEO
of BellSouth. "This relationship allows our customers to enjoy the range of
benefits from a comprehensive set of Internet and broadband digital solutions."
Once BellSouth receives permission to enter the long-distance market, the two
companies will offer seamless, high-capacity and high-speed network services
such as fame relay, ATM, and Internet Protocol and advanced applications
including web-hosting, electronic commerce, video streaming, Managed Network
Services, Managed Software Services and enhanced virtual private network
services.
"We are delighted to have this strategic relationship with a like-minded,
customer-focused company that is committed to offering customers end-to-end
high-speed communications
services and who understands the tremendous potential the Internet and data
communications marketplace has to offer," said Joseph P. Nacchio, Qwest Chairman
and CEO. "Moving forward, the BellSouth/Qwest relationship will provide
customers with a comprehensive communications solution set and global reach that
is unmatched in the industry."
The companies also pointed out that after BellSouth receives approval to offer
long-distance data and voice services, the agreement will enable both of them to
use each other's assets to develop infrastructure and/or distribution
capabilities in serving their respective customers across the globe. BellSouth
has extensive operations throughout Latin America as well as significant
presence in Europe. Qwest has a stronger presence in Europe and is beginning to
move into the Asia/Pacific and Latin American regions.
In addition, the relationship will also use the strategic alliances each has
with key Internet and technology companies including Microsoft, Cisco, Lotus and
others to the customers' advantage.
"There is a natural fit to our strategies that bodes well for our customers in
the future," said Ackerman. "Given the rapid change occurring in the
communications industry today, there is no doubt that together we have the
potential to be an even more significant driving force."
The equity aspect of the transaction is subject to Hart-Scott-Rodino review. The
deal is expected to close by the end of May.
BellSouth is a $23 billion communications services company. It provides
telecommunications, wireless communications, cable and digital TV, directory
advertising and publishing, and Internet and data services to nearly 34 million
customers in 19 countries worldwide.
Qwest Communications International Inc. is a leader in reliable and secure
broadband Internet-based data, voice and image communications for businesses and
consumers. Headquartered in Denver, Qwest has more than 8,000 employees and 80
sales offices in North America, Europe and Mexico. The Qwest Macro Capacity(SM)
Fiber Network, designed with the newest optical networking, will span more than
18,500 route miles in the United States when it is completed by mid-1999, and
the additional 315-mile network route recently announced will be complete by the
end of year. In addition, Qwest and KPN, the Dutch telecommunications company,
are forming a venture to build and operate a high-capacity European fiber optic,
Internet Protocol-based network that has 2,100 miles and will span 9,100 miles
when it is completed in 2001. Qwest also has nearly completed a 1,400-mile
network in Mexico. For more information, please visit the Qwest web site at
www.qwest.com.
For more information about BellSouth Corporation, visit the BellSouth Web page
at: http://www.bellsouth.com. For more information about Qwest Communications
International Inc., visit the Qwest Web page at: http://www.qwest.com.
BellSouth Note: This release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995 and are based on
a number of assumptions, including but not limited to: (1) continued domestic
economic growth and demand for BellSouth's services; (2) economic, monetary,
regulatory and political stability where BellSouth
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conducts its international operations; (3) the reasonable accuracy of
BellSouth's expectations of the impact on its international operations of
weakening currencies in Latin America as compared to the U.S. dollar; (4) the
reasonable accuracy of BellSouth's expectations of the results of regulatory
actions as well as costs and recoveries with respect to access reform, universal
service and interconnection; (5) the reasonable accuracy of BellSouth's estimate
of regulatory authorization to provide wireline long distance services and the
impact of competition in its markets; and (6) satisfactory identification and
completion of Year 2000 software and hardware revisions by BellSouth and
entities with which it does business. Any developments significantly deviating
from these assumptions could cause actual results to differ materially from
those forecast or implied in the aforementioned forward-looking statements.
Qwest Note: This release may contain forward-looking statements that involve
risks and uncertainties. These statements may differ materially from actual
future events or results. Readers are referred to the documents filed by Qwest
with the SEC, specifically the most recent reports which identify important risk
factors that could cause actual results to differ from those contained in the
forward-looking statements, including potential fluctuations in quarterly
results, dependence on new product development, rapid technological and market
change, failure to complete the network on schedule and on budget, financial
risk management and future growth subject to risks, Qwest's ability to achieve
Year 2000 compliance, and adverse changes in the regulatory or legislative
environment. Qwest undertakes no obligation to review or confirm analysts'
expectations or estimates or to release publicly any revisions to any
forward-looking statements to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.
CONTACT: Jill Greenman, 404-249-2068, or Tim Klein, 404-249-4135, or
Jeff Battcher, 404-713-0274, all of BellSouth Corporation, or
Tyler Gronbach, 303-992-2155, or Investor Relations, Lee
Wolfe, 800-567-7296, both of Qwest Communications
International Inc.
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