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Exhibit 99
Global Crossing Announces $3.65 Billion Cash Sale Of Local Exchange Carrier
Business To Citizens Communications
. Agreement streamlines Global Crossing's North American operations, and
refines global focus on building and delivering services on the world's
premier broadband network.
. Proceeds will be used to reduce indebtedness and to invest in network and
product capabilities.
. Citizens Communications is one of the fastest growing local exchange
companies in the United States. Upon completion of the purchase of the
Global Crossing unit, Citizens will have more than three million access
lines in more than 22 states.
Hamilton, Bermuda - July 12, 2000 - - Global Crossing Ltd. (Nasdaq: GBLX) today
announced an agreement to sell its incumbent local exchange carrier ("ILEC")
business, acquired as part of its acquisition of Frontier Corporation last fall,
to Citizens Communications (NYSE: CZN) for $3.65 billion in cash. Global
Crossing and Citizens also entered into a strategic agreement under which Global
Crossing will provide long distance services to the ILEC business.
The Global Crossing ILEC, which, at year-end, comprised 1,070,000 access lines,
is the 10th largest ILEC group in the United States. Approximately half of these
operations are in the Rochester, New York area, with the remainder in 13 states,
including notably Minnesota, Iowa, Wisconsin, and Pennsylvania. Adjusted for the
long distance operations, 1999 revenues were approximately $ 805.2 million and
1999 EBITDA was approximately $ 386.8 million.
Citizens Communications is one of the fastest growing local exchange companies
in the United States and, upon completion of the purchase of the Global Crossing
unit, will have more than three million access lines in more than 22 states. The
agreement is subject to both federal and state regulatory approvals which are
expected to take approximately nine months to obtain.
"Global Crossing has committed itself to maximizing shareholder value," said Leo
Hindery, Jr., Chief Executive Officer of Global Crossing. "This agreement
delivers on that commitment to shareholders, streamlines our North American
operations, and refines our global focus on building and delivering services on
the world's premier broadband network. Citizens Communications is the right
buyer for these assets. It serves the best interests of our customers and our
communities to combine the strong results of our Frontier employees with the
team at Citizens, while realizing for our shareholders the full value of our
ILEC business."
Added Hindery: "The sale of our incumbent local exchange business allows us to
re-deploy some of our capital into our higher growth global network and services
business. We intend to use these proceeds to pay down indebtedness and invest in
our network and product capabilities."
The purchase price is subject to standard adjustments concerning closing date
liabilities and working capital balances. Chase Securities Inc. and Merrill
Lynch & Co. assisted Global Crossing in the sale.
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About Global Crossing
Global Crossing Ltd. (Nasdaq: GBLX) is building and offering services over the
world's most extensive global IP-based fiber optic network, which will have more
than 101,000 route miles, serving five continents, 27 countries and more than
200 major cities. Global Crossing's subsidiary, GlobalCenter Inc., is a leading
Internet service company, and its customers own many of the largest and most
densely trafficked sites on the Web. Global Crossing's operations are
headquartered in Hamilton, Bermuda, with principal offices in Los Angeles,
California; London, England; Amsterdam, The Netherlands; Morristown, New Jersey;
Rochester, New York; Sunnyvale, California; and Miami, Florida. Visit Global
Crossing at www.globalcrossing.com on the Web.
About Citizens Communications
Citizens Communications (NYSE: CSN), formerly known as Citizens Utilities, is a
fast-growing community-based telecommunications provider. Currently serving
nearly one million customers across the nation, Citizens Communications provides
many areas with a single, simple source for telecommunications, including
Internet, high-speed data, long-distance, wireless, teleconferencing, cable
television, advanced calling feature and basic telephone services. Citizens
Communications has recently acquired more than 925,000 local telephone access
lines in 8 states as a result of agreements with GTE and U S WEST.
# # #
Statements made in this press release that state the Company's or management's
intentions, beliefs, expectations, or predictions for the future are forward-
looking statements. Such forward-looking statements are subject to a number of
risks, assumptions and uncertainties that could cause the Company's actual
results to differ materially from those projected in such forward-looking
statements. These risks, assumptions and uncertainties include: the ability to
complete systems within currently estimated time frames and budgets; the ability
to compete effectively in a rapidly evolving and price competitive marketplace;
changes in the nature of telecommunications regulation in the United States and
other countries; changes in business strategy; the successful integration of
newly-acquired businesses; the impact of technological change; and other risks
referenced from time to time in the Company's filings with the Securities and
Exchange Commission.
CONTACT GLOBAL CROSSING
Investor contacts: Press contacts:
Ken Simril Tom Goff
+1 310 385 5254 + 1 310 385 5231
[email protected] [email protected]
Kim Polan
+ 1 212 687 8080
[email protected]
