Corvis Closes Focal Purchase

Broadwing Communications to expand its reach with the purchase of Focal Communications

September 2, 2004

1 Min Read

COLUMBIA, Md. -- Corvis Corporation (Nasdaq:CORV), parent company of Broadwing Communications, LLC, today announced the closing of its acquisition of Focal Communications Corporation, a Chicago-based competitive local exchange carrier. The acquisition will expand the company's customer base, network reach, and portfolio of voice, data and video network services.

With the close of the Focal acquisition, Broadwing will gain approximately 4,000 enterprise and wholesale customers in 23 Tier-One markets throughout the United States. Focal brings to Broadwing a non-overlapping, service-complementary and revenue-generating local access network with a state-of-the-art switching infrastructure and network operations center, in addition to metropolitan fiber in nine major markets.

"Focal is a high quality company with a strong service portfolio that fits nicely into our strategic growth plan, expanding the market opportunities and revenue stream for Broadwing," said Dr. David Huber, Corvis chairman and chief executive officer. "We are moving quickly to complete the integration of employees, assets and systems in order to maximize synergies resulting from the Focal acquisition."

The Company said that the cost savings from executing on expected synergies are anticipated to be in the range of $20 million to $30 million dollars, net of integration costs, over the next 12 to 18 months.

"Our customers will be major beneficiaries of the acquisition," said Dr. Huber. "Broadwing and Focal already share corporate cultures that advocate innovation, flexibility and the highest quality customer service -- a philosophy that we believe stands in stark contrast to the service attitude of our legacy competitors."

Corvis Corp.

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