AUSTIN, Texas -- Broadwing Corporation (NASDAQ:BWNG - News) today announced that it has entered into a definitive agreement with certain institutional investors with respect to the private placement of 3,000,000 shares of its common stock at a purchase price of $12.00 per share, for gross proceeds to the Company of $36.0 million.

The net proceeds to Broadwing will be approximately $34.0 million. The Company intends to use the net proceeds for general corporate purposes. The shares of common stock have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent a registration statement or exemption from registration. This notice is issued pursuant to Rule 135c under the Securities Act of 1933 and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.

Broadwing Communications LLC