Exhibit 99.1
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FOR IMMEDIATE RELEASE Contact: Becky Haight
Investor Relations
Pathnet
877 227-5600
investor@pathnet.net
Kye Presley-Dowd
Media Relations
Pathnet
202 295-3286
kpresleydowd@pathnet.net
PATHNET AND WORLDWIDE FIBER SIGN STRATEGIC AGREEMENT
Planning Joint Build of 1,100 Mile Fiber-Optic Network From Chicago to Denver
WASHINGTON, DC, APRIL 13, 1999 - Pathnet, Inc., a privately-held carriers'
carrier of digital telecommunications capacity to under-served and second- and
third-tier U.S. markets, announced today a strategic agreement with Worldwide
Fiber USA (WFI) to construct a multi-conduit fiber-optic network between
Chicago, Illinois and Denver, Colorado. The total projected cost for this
project is in excess of $100 million.
The 1,100-mile network between Chicago and Denver will pass through Des Moines,
Iowa; Omaha, Nebraska; and Lincoln, Nebraska. WFI will lead-manage the project
with construction to be completed in two segments. The first segment, Chicago to
Omaha, is expected to be complete in late 1999 with the second segment, Omaha to
Denver, scheduled to come on line in 2000. In accordance with its
recently-announced agreement with Lucent Technologies, Pathnet will rely
exclusively on Lucent's TrueWave (R) RS (reduced slope) fiber for its portion of
the build. The company expects the WFI contract, together with similar
construction agreements in the future, to enable it to begin taking advantage of
financing arrangements with Lucent.
"Our partnering arrangement with WFI represents the first major step in
implementing our broadened business strategy" said Dick Jalkut, Pathnet
president and chief executive officer. "This route can be seamlessly integrated
into our existing digital network and monitored from our state-of-the-art
network operations center in Washington, D.C."
Commenting on the anticipated level of demand on the new route, Kevin Bennis,
Pathnet president of communications services said, "Our customers and prospects
have provided strong feedback indicating the need for both dark and lit fiber
capacity along this under-served route. With demand expected to increase even
more in the future, available fiber facilities along this route will position
Pathnet to meet those requirements for some time to come."
Worldwide Fiber Inc., headquartered in Vancouver, British Columbia, Canada is a
facilities based provider of technologically advanced, high-bandwidth fiber
optic communications infrastructure. WFI has completed
2,700 miles of a planned 11,000 mile fiber-optic network in North America to
meet the facilities requirements of communications carriers, internet service
providers, and corporations with enterprise network needs and to satisfy the
increasing demand generated by high-bandwidth data, voice and video
communications.
Pathnet is a carriers' carrier providing high capacity, wireless and fiber
bandwidth to under-served and second- and third-tier markets. It provides
service to inter-exchange carriers, local exchange carriers, Internet service
providers, Regional Bell Operating Companies, cellular operators and resellers.
Pathnet's strategy is to build low-cost telecommunications networks through
partnering arrangements. As of December 31, 1998, Pathnet had 2,000 route miles
of completed network, 5,000 route miles of network under construction and 10,000
route miles of network under contract. The company's headquarters are located in
Washington, D.C., at 1015 31st Street, N.W., Washington, D.C., 20007. For
additional information about Pathnet, visit the company Web site at
www.pathnet.net.
This press release contains some matters that are forward-looking statements.
The reader is cautioned that these forward-looking statements, such as plans to
sign additional agreements with private network operators; offer services to
telecom service providers; enter into partnering arrangements; build a digital
network; and statements regarding the development of Pathnet's business, 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 may differ materially as a result of risks
facing Pathnet. For a discussion of factors that could affect the
forward-looking statements, see Pathnet's public filings on file with the
Securities and Exchange Commission.
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