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FOR IMMEDIATE RELEASE: Monday, September 8, 1997
HOUSTON - Three companies that each combine strong positions in both the energy and telecommunications marketplaces are launching a project to build a long-haul fiber-optic network linking Portland and Los Angeles.
The inland route, spanning 1,620 miles, will provide new connectivity to several growing metropolitan areas in the West. In addition to Portland and Los Angeles, the new network will serve Bend, Ore.; Boise, Idaho; Salt Lake City and Las Vegas as well as provide advanced telecommunications services to rural populations along the route. Scheduled to be completed in December 1998, the network also will become an important alternative to existing coastal routes.
The three participating companies, which will own equal shares in FTV Communications, a limited liability corporation formed to construct the network, are:
- FirstPoint Communications, Inc., formerly a Portland General company and now an Enron (NYSE: ENE) subsidiary with headquarters in Portland.
- Touch America, a subsidiary of The Montana Power Company (NYSE: MTP) based in Butte, Mont.
- Williams Communications Group, Inc., a division of The Williams Companies, Inc., (NYSE: WMB) through its Vyvx, Inc. business unit. All are based in Tulsa, Okla.
Participants in the project are in an ideal position to use their expertise in facility construction while enhancing the significant marketing presence each has achieved in targeted segments of the telecommunications industry. The new fiber project will allow the companies to move additional traffic onto their own fiber network, providing customers a competitive advantage as well as enhanced geographic route diversity.
The system will be built with the highest capacity fiber-optic cable available in the industry. Each company will select and provide its own optronics (optical electronics installed along the route to transmit pulses of laser light through the fiber).
"We already own one of the largest networks in the country, which we utilize to support television transmission, the Internet and other multimedia applications," said Howard Janzen, president and chief executive officer of Williams Communications Group. "In particular, this project enhances the ability of our Vyvx business unit to carry live news, sports and special events to customers worldwide."
Today, Vyvx owns and operates an 11,000-mile nationwide fiber network. Vyvx's total fiber network will reach some 19,000 route miles at the end of 1998. That will include the 1,620 miles of fiber being built by FTV Communications; a previously announced 1,800-mile fiber construction project linking Houston, Atlanta and Washington, D.C., and an exchange agreement with IXC Communications covering 4,500 route miles between New York and Los Angeles.
"This project provides significant strategic opportunity for Montana Power to combine telecommunications service with electricity and natural gas commodities and energy services in the western United States," said Michael Meldahl, Touch America's president. "We are absolutely enthused about this additional opportunity to serve the communication needs of the people in the western part of the nation."
Touch America, construction manager for the project, operates a 3,015-mile fiber network from Seattle to St. Paul and from Denver to the Canadian border. It is one of only four networks in the United States with a gateway to Canada. With the Portland-Los Angeles link, Touch America will operate more than 4,600 miles of fiber.
"Demand is tremendous for Internet, Intranet, email and other high-bandwidth services on existing networks," said Robert F. Frisbee, senior vice president and chief operating officer of FirstPoint. "Customers today require high-capacity, high-speed access to information. We believe the explosive growth in the western part of the country will support FirstPoint's first long-haul project."
FirstPoint has completed four fiber loops that encircle Portland and neighboring communities. The 55-mile Portland Metropolitan Area Network and the 1,620-mile western build anchor FirstPoint's plans to establish a robust telecommunications network. Via these fiber networks and a global leased network, FirstPoint will provide carriers' carrier services and high-bandwidth video, data and multi-media services throughout the West and targeted international destinations.
About Touch America
Touch America is a wholly owned telecommunications subsidiary of The Montana Power Company, providing long distance services, private line services, Internet and business telephone equipment throughout the Pacific Northwest since 1983. The company's digital fiber optic network employs the most advanced telecommunications technology available today. Touch America offers a full line of long distance services, as well as dedicated voice, data, video services and frame relay solutions. Touch America's equipment services include design, installation and maintenance of PBX and key systems. The company also offers construction management oversight of the installation of fiber optic systems. Touch America and The Montana Power Company are based in Butte, Mont. Information about Touch America can be found at http://www.in-tch.com or http://www.mtpower.com.
About Williams Communications Group, Inc.
Williams Communications Group, Inc., provides a full range of enterprise network solutions, communications services and advanced applications to businesses domestically and globally. These services include integrated fiber-optic, satellite and teleport video transmission services; nationwide single-source business communications systems integration; multipoint video- and audio-conferencing; satellite business applications; enhanced fax services; interactive technical training, on-demand distance learning, and Internet and telemarketing services. Williams Communications Group is one of The Williams Companies, Inc., based in Tulsa, Okla. Information about The Williams Companies can be found at http://www.twc.com.
About FirstPoint Communications, Inc.
FirstPoint Communications provides, via its own facilities and alliances, high-bandwidth data, video and multimedia services, both nationally and internationally. FirstPoint's primary focus is on the wholesale carriers' carrier market and the rapidly growing high-bandwidth connectivity needs of multinational companies. FirstPoint Communications is a subsidiary of Enron Corp., based in Houston. Enron is one of the world's largest integrated natural gas and electricity companies. Enron transports natural gas, buys and sells natural gas, natural gas liquids and electricity, manages fixed-price natural gas risk management contracts, and, explores for and produces natural gas and crude oil. Enron also develops, constructs and manages international energy infrastructure and manufactures and supplies solar and wind renewable energy worldwide. Enron completed its merger with Portland General Corporation on July 1, 1997, and now operates Portland General Electric as a wholly-owned business unit. Enron's assets are valued at approximately $19 billion. Information about Enron can be found at http://www.enron.com.
All trademarks are the property of their respective owners.
For additional information please contact:
Enron
Carol Hensley
(713) 853-6498
chensley@enron.com
Touch America
Cort Freeman
406-497-2368
cfreeman@mtpower.com
Williams Communications Group
Gil Broyles
918-588-4740
gil.broyles@wilcom.com
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