Broadwing Communications To Acquire Focal Communications

September 3, 2004 - (HostReview.com) - Corvis Corporation, Parent Company, Closes Acquisition of Chicago-based CLEC Broadwing To Add 4,000 Enterprise and Wholesale Customers in 23 Tier-One U.S. Markets Combined Network To Expand Reach into Major Metropolitan Areas Local Exchange Voice Added to Robust Portfolio of Voice, Data and Video Services.

Corvis Corporation, parent company of Broadwing Communications, LLC, today announced the closing of its acquisition of Focal Communications Corporation, a Chicago-based competitive local exchange carrier.  The acquisition will expand the company's customer base, network reach, and portfolio of voice, data and video network services.

"Focal is a high quality company with a strong service portfolio that fits nicely into our strategic growth plan, expanding the market opportunities and revenue stream for Broadwing," said Dr. David Huber, Corvis chairman and chief executive officer.  "We are moving quickly to complete the integration of employees, assets and systems in order to maximize synergies resulting from the Focal acquisition."

The Company said that the cost savings from executing on expected synergies are anticipated to be in the range of $20 million to $30 million dollars, net of integration costs, over the next 12 to 18 months.

"Additionally, we are leveraging the core competencies of both companies, combining Broadwing's best-of-breed data products with Focal's quality local voice services, to offer customers a single supplier for the strongest suite of voice, data and video services in the industry, all with unparalleled customer service.  Our goal is to be the network supplier of choice for enterprise, strategic service provider, mid-market and government customers," Dr. Huber continued.

Corvis acquired Focal for a total consideration of approximately $189 million, comprised of approximately $88 million in equity that was issued to Focal's existing equity holders and the assumption or payment of approximately $101 million of Focal's debt and other long-term capital lease obligations.  For fiscal 2003, Focal reported approximately $320 million in revenue.

Corvis Corporation and its consolidated subsidiary, Broadwing Communications, LLC, deliver innovative optical networking solutions that deliver voice, video and data solutions rapidly, flexibly and at what we believe to be the lowest total cost in the industry.