Contract
SBC Communications Inc. AT&T Corp. Time Warner Telecom
Xxxxx Xxx Xxxxx Xxx Xxxxx Xxxxxx Xxxxxx
000-000-0000 000-000-0000 000-000-0000
xxxxx.xxx@xxx.xxx xxxxxxxxx@xxx.xxx xx@xxxxxxxxx.xxx
Time Warner Telecom, AT&T, SBC Extend Long-Term Service Agreement
Time Warner Telecom to deliver "last-mile" network services to merged companies;
Agreement provides businesses the benefits of alternative communications choices
San Antonio, Bedminster, N.J., and Littleton, Colo., June 1, 2005
Time Warner Telecom (Nasdaq: TWTC), SBC Communications Inc. (NYSE: SBC) and AT&T Corp. (NYSE:T) today announced the extension of a long-term service agreement under which Time Warner Telecom would provide special access and other "last-mile" network services to the companies nationwide through 2010. The deal, effective upon completion of the SBC and AT&T merger, demonstrates the parties' commitment to promoting viable competition in the telecommunications industry and to delivering businesses the benefits of alternative communications choices.
"This agreement enables SBC, post-merger, to become a more effective out-of-
region provider, thereby enhancing competition in the industry nationwide," said
Xxxx Xxxxxxx, senior vice president-business marketing for SBC. "SBC is pleased
to build upon the long-term business relationship AT&T has had with Time Warner
Telecom."
This new commercial agreement would extend a current contract between Time
Warner Telecom and AT&T through Dec. 31, 2010, for the combined AT&T and SBC
once the merger is completed. AT&T entered into a long-term commercial
agreement with Time Warner Telecom on Jan. 1, 2001, buying local network access
primarily to provide private-line and special-access services to businesses
nationwide, and for local termination of long-distance and international calls.
"This agreement ensures that we will continue our valued business relationship
with AT&T post-merger, and that we will be able to include SBC in that
relationship, allowing us to be a viable competitor of and supplier to the
merged entity," said Xxxx Xxxxxx, executive vice president-field operations for
Time Warner Telecom. "We are excited about the opportunity to be a key provider
for the combined entity."
"Time Warner Telecom has been a valuable supplier of "last-mile" network
services used to connect our corporate customers to the AT&T network in many
markets around the country," said Xxxxxx Xxxx, AT&T vice president of global
access strategy and bandwidth product management. "We're very pleased this
relationship will continue once our merger with SBC is completed."
Completion of the SBC-AT&T merger is expected by the end of this year or in
early 2006, following all necessary regulatory and governmental approvals.
In a separate agreement, SBC will provide Time Warner Telecom with special
access and other "last-mile" network services in SBC's traditional in-region
territory for five years. The deal, which will take effect June 2, 2005, strengthens Time Warner Telecom's ability to compete effectively for the nationwide business market.
SBC Communications Inc. is a Fortune 50 company whose subsidiaries, operating
under the SBC brand, provide a full range of voice, data, networking, e-
business, directory publishing and advertising, and related services to
businesses, consumers and other telecommunications providers. SBC holds a 60
percent ownership interest in Cingular Wireless, which serves more than 50
million wireless customers. SBC companies provide high-speed DSL Internet access
lines to more American consumers than any other provider and are among the
nation's leading providers of Internet services. SBC companies also now offer
satellite TV service. Additional information about SBC and SBC products and
services is available at xxx.xxx.xxx.
For more than 125 years, AT&T (NYSE: T) has been known for unparalleled quality
and reliability in communications. Backed by the research and development
capabilities of AT&T Labs, the company is a global leader in local, long
distance, Internet and transaction-based voice and data services.
Time Warner Telecom, headquartered in Littleton, Colo., provides managed network
services, specializing in Ethernet and transport data networking, Internet
access, local and long distance voice, VoIP and security, to enterprise
organizations and communications services companies throughout the U.S. As a
leading provider of integrated and converged network solutions, Time Warner
Telecom delivers customers overall economic value, quality, service, and
improved business productivity. With nearly 20,000 route miles of its own local
and regional fiber networks, a national IP backbone with 10 Gbps capacity, and
nearly 5,300 buildings connected directly to its fiber networks, Time Warner
Telecom provides the local "last mile" of reliable communications services to
customers. Please visit xxx.xxxxxxxxx.xxx for more information.
About the Proposed SBC/AT&T Merger:
In connection with the proposed transaction, SBC Communications Inc. ("SBC")
filed a registration statement, including a proxy statement of AT&T Corp., with
the Securities and Exchange Commission (the "SEC") on March 11, 2005 (File No.
333-123283). Investors are urged to read the registration and proxy statement
(including all amendments and supplements to it) because it contains important
information. Investors may obtain free copies of the registration and proxy
statement, as well as other filings containing information about SBC and AT&T
Corp., without charge, at the SEC's Internet site (xxx.xxx.xxx). These
documents may also be obtained for free from SBC's Investor Relations web site
(xxx.xxx.xxx/xxxxxxxx_xxxxxxxxx) or by directing a request to SBC Communications
Inc., Stockholder Services, 000 X. Xxxxxxx, Xxx Xxxxxxx, Xxxxx 00000. Copies
of AT&T Corp.'s filings may be accessed and downloaded for free at the AT&T
Investor Relations Web Site (xxx.xxx.xxx/xx/xxx) or by directing a request to
AT&T Corp., Investor Relations, One AT&T Way, Bedminster, New Jersey 07921.
SBC, AT&T Corp. and their respective directors and executive officers and other
members of management and employees may be deemed to be participants in the
solicitation of proxies from AT&T shareholders in respect of the proposed
transaction. Information regarding SBC's directors and executive officers is
available in SBC's proxy statement for its 2005 annual meeting of stockholders,
dated March 11, 2005, and information regarding AT&T Corp.'s directors and
executive officers is available in the registration and proxy statement. Additional information regarding the interests of such potential participants is included in the registration and proxy statement and other relevant documents filed with the SEC.
Cautionary Language Concerning Forward-Looking Statements:
This document contains forward-looking statements within the meaning of the U.S.
Private Securities Litigation Reform Act. Forward-looking statements are
statements that are not historical facts and are generally identified by the
words "expects", "anticipates", "believes", "intends", "estimates" and similar
expressions.
AT&T-SBC: These statements include, but are not limited to, financial
projections and estimates and their underlying assumptions, statements regarding
the benefits of the business combination transaction involving AT&T and SBC,
including future financial and operating results and the plans, objectives,
expectations and intentions of the combined. Such statements are based upon the
current beliefs and expectations of the managements of AT&T and SBC and are
subject to significant risks and uncertainties (many of which are difficult to
predict and are generally beyond the control of AT&T and SBC) that may cause
actual results to differ materially from those set forth in, or implied by, the
forward-looking statements.
The following factors, among others, could cause actual results to differ
materially from those set forth in the forward-looking statements: the ability
to obtain governmental approvals of the transaction on the proposed terms and
schedule; the failure of AT&T shareholders to approve the transaction; the risk
that the businesses will not be integrated successfully; the risk that the cost
savings and any other synergies from the transaction may not be fully realized
or may take longer to realize than expected; disruption from the transaction
making it more difficult to maintain relationships with customers, employees or
suppliers; competition and its effect on pricing, spending, third-party
relationships and revenues. Additional factors that may affect future results
are contained in SBC's and AT&T's filings with SEC, which are available at the
SEC's Web site xxxx://xxx.xxx.xxx. Other than as required by applicable law,
AT&T and SBC disclaim any obligation to update and revise statements contained
in this news release based on new information or otherwise.
Time Warner Telecom: These statements include, but are not limited to, the
benefits and impacts of the agreements described in this release and Time Warner
Telecom's continued relationship with AT&T/SBC. Such statements are based upon
the current beliefs and expectations of the management Time Warner Telecom and
are subject to significant risks and uncertainties (many of which are difficult
to predict and are generally beyond the control of Time Warner Telecom) that may
cause actual results to differ materially from those set forth in, or implied
by, the forward-looking statements. Important factors that could cause actual
results to vary materially from those set forth in the forward-looking
statements include the failure of AT&T/SBC to consummate the planned merger,
unforeseen technological changes in the industry, future consolidation in the
industry and economic downturns, as well as the Risk Factors set for the in Time
Warner Telecom's Annual Report on Form 10-K for the fiscal year ended December
31, 2004. Time Warner Telecom undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise.
