BROOMFIELD, Colo., July 19, 2002 - The following statement can be attributed to James Q. Crowe, chief executive officer of Level 3 Communications, Inc. (Nasdaq:LVLT):
"Recently, various news reports have indicated that I am on a list of corporate executives who allegedly received shares of stock in initial public offerings ("IPOs") in return for steering investment banking business to the firm providing these valuable opportunities.
"This is an allegation that I take very seriously, particularly since I have publicly and repeatedly said that I consider such sweetheart deals, even if they may be technically legal, to be wrong. In fact, since January 1999, Level 3 has had a policy against any such transactions.
"Since learning of the allegation, I have reviewed my investment and tax records and other relevant documents, and I want to report the results of that review to you.
"I have never purchased, owned or sold any shares of any of the companies that have been identified in press reports in connection with the alleged IPO purchases, which I understand to be Rhythms NetConnections, Alamosa Holdings, Radware, interWAVE Communications, Focal Communications, US LEC, Global Crossing, Imstat Fiber Networks and KPNQwest.
"I have never sought to purchase shares in hot IPOs in return for giving business to any investment bank.
"I do recall that in one instance I was informed that, without my knowledge, shares in a hot IPO were bought and sold on my behalf by an investment bank with which Level 3 did business, and that I had profited from the transaction. Since I believed then, as I do now, that such transactions would be improper, immediately upon learning of the transaction, I refused to accept the money and demanded that the purchase and sale be voided, which I was assured was subsequently done.
"I hope that the information I am providing helps you understand my past and current actions and views concerning this important issue. Thank you for your continuing support of our company."
About Level 3 Communications
Level 3 Communications, Inc. (NASDAQ: LVLT), an international communications company, operates one of the largest Internet backbones in the world, connecting 180 markets in 18 countries. The company serves a broad range of wholesale, enterprise and content customers with a comprehensive suite of services including: Internet Protocol (IP) services, broadband transport and infrastructure services, colocation services, voice and voice over IP services, content delivery and media distribution services. These services provide the building blocks to enable Level 3’s customers to meet their growing demands for advanced communications solutions. The company’s Web address is www.Level3.com.
"Level 3 Communications,” "Level 3," the red 3D brackets and the Level 3 Communications logo are registered service marks of Level 3 Communications, LLC in the United States and/or other countries. Level 3 services are provided by wholly owned subsidiaries of Level 3 Communications, Inc. Any other service, product or company names recited herein may be trademarks or service marks of their respective owners.
Forward-Looking Statement
Some of the statements that we make in this press release are forward looking in nature. These statements are based on management’s current expectations or beliefs. These forward looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside our control, which could cause actual events to differ materially from those expressed or implied by the statements. The most important factors that could prevent us from achieving our stated goals include, but are not limited to our ability to: successfully integrate acquisitions; increase the volume of traffic on our network; defend our intellectual property and proprietary rights; develop new products and services that meet customer demands and generate acceptable margins; successfully complete commercial testing of new technology and information systems to support new products and services; attract and retain qualified management and other personnel; and meet all of the terms and conditions of our debt obligations. Additional information concerning these and other important factors can be found within Level 3’s filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors. Level 3 is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
