HOOFDDORP, The Netherlands -- The administrators and the management board of KPNQwest N.V. announced today that they have continued to negotiate a transaction whereby a substantial part of the business of KPNQwest NV would be sold. These negotiations are still ongoing and it may still be possible for a substantial part of the business to be sold. The efforts to try and sell certain non-critical assets in order to secure sufficient cash proceeds to meet the ongoing obligations of the company have not been successful. This situation is not expected to change over the next 24 hours. This being the case, the administrators and the management board of KPNQwest N.V. have no other choice than to request the District Court of Haarlem, The Netherlands, to convert the moratorium into a bankruptcy for KPNQwest NV. This request is being filed at the court today. At the same time, requests for a moratorium of certain of the Dutch group companies will be filed with the District Court of Amsterdam. A number of KPNQwest subsidiaries across Europe will also file for protection in their local jurisdictions, with the exception of the Central European subsidiaries, KPNQwest Portugal Telecomunicaoes Lda and KPNQwest Italy SA among others. The Company is working with its customers to facilitate the implementation of contingency plans, should the current situation result in instablility or a total shut-down of the KPNQwest EuroRings network. KPNQwest NV