Dynegy Sells Comms to 360networks

HOUSTON -- Dynegy Inc. (NYSE:DYN - News) today announced an agreement to sell its North American communications business to an affiliate of 360networks Corporation, a leading provider of data telecommunications services. Under the terms of the agreement, 360networks will acquire Dynegy's entire North American communications operations, consisting of a high-capacity broadband network spanning more than 16,000 route miles with access points in 44 U.S. cities. Dynegy's customer base, fiber leases, co-location facilities and other obligations and assets related to the U.S. communications network are included in the sale. The transaction, which is expected to close in April 2003, is subject to regulatory and other approvals, including lender consent. Financial terms were not disclosed. The agreement with 360networks marks the final step in Dynegy's exit from communications, a business that was launched in August 2000. In January 2003, Dynegy sold its European communications business to a division of Klesch & Company. "Today's announcement is significant for Dynegy and its stakeholders as it represents the last major divestiture of non-core assets in our self-restructuring. It leaves us with our three strong energy businesses in power generation, natural gas liquids and regulated energy delivery," said Dynegy Inc. President and Chief Executive Officer Bruce A. Williamson. "Combined with the recent sale of our European communications business, the completion of this transaction will end our participation in the communications sector, enabling us to focus entirely on the energy business." 360networks President and Chief Operating Officer Jimmy Byrd said, "360networks provides leading-edge network services to our growing customer base and the acquisition of Dynegy's network will enhance our ability to do so." Byrd added, "We anticipate a seamless transition for existing customers and will continue to maintain the same high level of service that has characterized the operations of both 360networks and Dynegy." In a separate release: VANCOUVER -- 360networks Corporation, a leading provider of telecommunications services, announced today it will acquire Dynegy Inc.'s (NYSE: DYN) North American communications business for an undisclosed sum. Under the terms of the agreement, 360networks will acquire Dynegy's North American communications operations, consisting of a high-capacity broadband network spanning more than 16,000 route miles with 65 wholesale customers and access points in 44 U.S. cities. 360networks will assume Dynegy's existing customer base and its remaining fiber leases and its co-location facilities. "Dynegy's telecom business will complement our US network footprint and enhance our ability to provide high-quality data communications services to carriers and enterprises throughout North America," said Greg Maffei, 360networks' Chairman and Chief Executive Officer. "The volatility in the telecommunications industry continues to create consolidation opportunities for those with the right assets and financial backing. " "We anticipate a seamless transition for existing Dynegy customers and will continue to offer the same high level of service that has characterized the operations of both 360networks and Dynegy," added Jimmy Byrd, 360networks' President and Chief Operating Officer. The transaction is expected to close in April 2003, pending regulatory and other approvals. Dynegy Inc. 360networks Inc.