AMSTERDAM -- KPNQwest, N.V. ('KPNQwest') today announced that it has agreed to sell Euro 500 million aggregate principal amount of its 8 7/8% senior notes due 2008 in an offering conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. The senior notes will rank pari passu with KPNQwest's other senior unsecured debt, including its 8 1/8% Senior Notes due 2009 and its 7 1/8% Senior Notes due 2009. The net proceeds of the offering will be used by KPNQwest to finance the development of its network and for working capital and other general corporate purposes. KPNQwest expects to consummate this offering of senior notes on 22 January 2001.

The senior notes have not been registered under the Securities Act or any state securities laws, and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from registration requirements. Accordingly, the Notes will be offered and sold within the United States under Rule 144A only to qualified institutional buyers and outside the United States in accordance with Regulation S under the Securities Act. KPNQwest expects to agree to register the Notes under the Securities Act in certain circumstances. These securities are not and will not be offered anywhere in the world other than to persons who trade or invest in securities in the conduct of their profession or trade (which includes, banks, securities intermediaries (including dealers and brokers), insurance companies, pension funds, other institutional investors and treasury departments and finance companies of large commercial enterprises, which as an ancillary activity, regularly invest in securities).

http://www.kpnqwest.com/html/records.asp?record_id=527