16.05.2005 13:01:00

Qwest Communications Receives Multimillion-Dollar Contract from Lockhe

Qwest Communications Receives Multimillion-Dollar Contract from Lockheed Martin to Provide Federal Agency More Efficient Networking


    Business Editors/High-Tech Editors

    DENVER--(BUSINESS WIRE)--May 16, 2005--Qwest Communications International, Inc. (NYSE: Q) today announced a new contract to provide enhanced networking capability to the Department of Housing and Urban Development (HUD), allowing the transfer of data between nearly 100 field locations and six regional offices more efficiently than HUD's current system.
    Under an initial five-month $1.1 million contract, there are nine additional one-year options which could be worth over $19 million. Qwest will provide its industry-leading iQ Networking(TM) services, giving HUD increased flexibility and expandability. Qwest will provide these services as a subcontractor to Lockheed Martin Corporation (NYSE: LMT) under HUD's Information Technology Services contract. These new services expand Qwest's existing base of business provided to HUD under previous contracts.
    Qwest's iQ Networking is a unique approach which enables HUD to simplify its network while leveraging its investment in existing technologies. The solution includes access to Qwest's multi-protocol label switching (MPLS)-based private IP network, providing secure, any-to-any intranet connectivity and the capability for improved network performance.
    "Qwest has demonstrated its ability to meet cost and schedule constraints, including an extremely brief implementation period," said Marv Allen, HITS program director for Lockheed Martin Simulation, Training & Support.
    "By working with this important cabinet level department, Qwest is supporting the transfer of critical data between multiple HUD locations over Qwest's secure, reliable nationwide infrastructure," said James F. X. Payne, senior vice president, government services divisions for Qwest. "This represents a new opportunity for us with an agency we've been providing service to for several years."

    About Qwest

    Qwest Communications International, Inc. (NYSE: Q) is a leading provider of voice, video and data services. With more than 40,000 employees, Qwest is committed to the "Spirit of Service" and to providing world-class services that exceed customers' expectations for quality, value and reliability. For more information, please visit the Qwest Web site at www.qwest.com.

    Forward-Looking Statement Note

    This release may contain projections and other forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by us with the Securities and Exchange Commission, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including but not limited to: access line losses due to increased competition, including from technology substitution of our access lines with wireless and cable alternatives; our substantial indebtedness, and our inability to complete any efforts to de-lever our balance sheet through asset sales or other transactions; any adverse outcome of the current investigation by the U.S. Attorney's office in Denver into certain matters relating to us; adverse results of increased review and scrutiny by regulatory authorities, media and others (including any internal analyses) of financial reporting issues and practices or otherwise; rapid and significant changes in technology and markets; any adverse developments in commercial disputes or legal proceedings, including any adverse outcome of current or future legal proceedings related to matters that are the subject of governmental investigations, and, to the extent not covered by insurance, if any, our inability to satisfy any resulting obligations from funds available to us, if any; potential fluctuations in quarterly results; volatility of our stock price; intense competition in the markets in which we compete including the likelihood of certain of our competitors consolidating with other providers or otherwise reorganizing their capital structure to more effectively compete against us; changes in demand for our products and services; acceleration of the deployment of advanced new services, such as broadband data, wireless and video services, which could require substantial expenditure of financial and other resources in excess of contemplated levels; higher than anticipated employee levels, capital expenditures and operating expenses; adverse changes in the regulatory or legislative environment affecting our business; changes in the outcome of future events from the assumed outcome included in our significant accounting policies; and our ability to utilize net operating losses in projected amounts.
    The information contained in this release is a statement of Qwest's present intention, belief or expectation and is based upon, among other things, the existing regulatory environment, industry conditions, market conditions and prices, the economy in general and Qwest's assumptions. Qwest may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors, in Qwest's assumptions or otherwise. The cautionary statements contained or referred to in this release should be considered in connection with any subsequent written or oral forward-looking statements that Qwest or persons acting on its behalf may issue. This release may include analysts' estimates and other information prepared by third parties for which Qwest assumes no responsibility.
    Qwest undertakes no obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements and other statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
    By including any information in this release, Qwest does not necessarily acknowledge that disclosure of such information is required by applicable law or that the information is material.

    The Qwest logo is a registered trademark of Qwest Communications International Inc. in the U.S. and certain other countries.

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CONTACT: Qwest Communications International, Inc. Media Contact: Claire Mylott, 303-965-2689 Claire.mylott@qwest.com or Chris Valmassei, 703-338-2678 cvalmassei@aol.com or Investor Contact: Stephanie Comfort, 800-567-7296 IR@qwest.com

KEYWORD: COLORADO INDUSTRY KEYWORD: GOVERNMENT TELECOMMUNICATIONS MARKETING AGREEMENTS SOURCE: Qwest Communications International, Inc.

Copyright Business Wire 2005

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