| Press Release | Source: McLeodUSA Incorporated |
McLeodUSA Announces Business Relationship with Cisco Systems
Tuesday September 2, 7:01 am ET
CEDAR RAPIDS, Iowa--(BUSINESS WIRE)--Sept. 2, 2003-- McLeodUSA Incorporated (Nasdaq:MCLD - News), one of the nation's largest independent competitive telecommunications services providers, today announced that it has signed a letter of agreement with Cisco Systems, Inc., to cooperate to enable McLeodUSA to offer managed telecommunications solutions to businesses in McLeodUSA markets. As part of the agreement, McLeodUSA will offer Preferred Advantage(SM) Managed Data Services for DSL, Frame Relay and Dedicated Internet Products with Cisco as the primary customer premises equipment (CPE) provider.
"This relationship is another step in the execution of our strategy to be a world-class telecommunications services provider," said Chris A. Davis, Chairman and CEO of McLeodUSA. "The market opportunity for broadband, Internet and data services continues to grow, and we believe that combining the strengths of McLeodUSA's high quality network services with Cisco's strong portfolio of equipment will substantially accelerate our ability to deliver end-to-end, cost-effective solutions to our larger business customers."
"We are excited about teaming with McLeodUSA to deliver customized business solutions," said Nigel Williams, Vice President, Service Provider Channels at Cisco. "This relationship will enable McLeodUSA to deliver to its customers Cisco technology and enterprise expertise combined with McLeodUSA's network services as a single solution."
Over the next several months, McLeodUSA and Cisco plan to work together to help enable McLeodUSA to provide a suite of value-added services utilizing Cisco's products operating with the McLeodUSA integrated communications network. The aim of the relationship is to help businesses increase operational efficiency and decrease operating expenses.
The new McLeodUSA Preferred Advantage Managed Data Services will be rolled out across McLeodUSA's 25-state footprint beginning this month with availability in most markets by the end of the year. Additional services are planned for introduction during the first half of 2004.
About McLeodUSA
McLeodUSA provides integrated communications services, including local services, in 25 Midwest, Southwest, Northwest and Rocky Mountain states. The Company is a facilities-based telecommunications provider with, as of June 30, 2003, 38 ATM switches, 45 voice switches, 584 collocations, 435 DSLAMs and 3,710 employees. As of April 16, 2002, Forstmann Little & Co. became a 58% shareholder in the Company. Visit the Company's Web site at www.mcleodusa.com.
Some of the statements in this press release include statements about our future expectations. Statements that are not historical facts are "forward-looking statements" for the purpose of the safe harbor provided by Section 21E of the Exchange Act and Section 27A of the Securities Act. Such statements may include projections of financial and operational results and goals, including revenue, EBITDA, profitability, savings and cash. These forward-looking statements are subject to known as well as unknown risks and uncertainties that may cause actual results to differ materially from our expectations. Our expectations are based on various factors and assumptions and reflect only our predictions. Factors that could cause actual results to differ materially from the forward-looking statement include technological, regulatory, public policy or other developments in our industry, availability and adequacy of capital resources, current and future economic conditions, the existence of strategic alliances, our ability to generate cash, our ability to implement process and network improvements, our ability to attract and retain customers, our ability to migrate traffic to appropriate platforms and changes in the competitive climate in which we operate. These and other risks are described in more detail in our most recent Annual Report on Form 10-K and Form 10-K/A both filed with the SEC. The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise.
Contact: McLeodUSA Incorporated Contacts: Marketing: Karen Fox Media/Investor Relations: Bryce Nemitz (319) 790-7800 Mcleodusa.pr@mcleodusa.com
Source: McLeodUSA Incorporated
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