Joint Press Release
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PRESS RELEASE PRIMACOM AND LEVEL 3 AGREE UPON A STRATEGIC PARTNERSHIP New alliance for marketing PrimaCom’s digital platform nationwide to cable operator: Subscriber potential: seven million homes passed Mainz/Frankfurt, March 27, 2003, PrimaCom and Level 3 announced today the closing of a co-operation agreement. This agreement promotes nationwide joint marketing efforts to distribute the complete PrimaCom digital platform to cable operators, utilities, and other providers like city carriers. The fragmented German cable market with approximately 5,000 small cable operators requires such strategic alliances as many of these Level 4 operators can not profitably develop their own technical platforms and design new products. PrimaCom with its state of the art digital play out center in Leipzig represents an ideal partner for strategic alliances in the German cable industry. Level 3 is the leading provider of a nationwide optical fiber backbone. The strategic partnership between PrimaCom and Level 3 stands for a breakthrough in the fragmented German cable market and a “win-win” situation for all parties involved. Level 3 transports PrimaCom’s digital signal through its optic fiber “super highway” to cable network operators, for the first time providing them with an alternative for sourcing a complete signal package or selective programs and services via the level 3 network. This first time access to PrimaCom’s state of the art technology allows network level 4 providers to significantly enlarge their product range. Level 3 increases the usage of its optical fiber backbone, which runs through Germany like a large loop, thus as a data carrier creating additional revenue and earning potential. As the CEO of Level 3 Germany, Uwe Nickl, stated: “We offer the German cable sector a nationwide signal delivery alternative for the first time. Hence Level 3 and PrimaCom are making an important step along the way to execute the political will in digitalizing German television.” PrimaCom multiplies the range of its central play-out center and in proximity of Level 3’s optical fiber backbone wins for its digital signal of 100 video and radio programs, Video on Demand, and Internet an addressable nationwide customer potential of approximately seven million homes. The product portfolio offers TV in the areas movies, sport, family, lifestyle, science, music, and erotic. PrimaCom will strongly enlarge its digital offerings and foreign language programs in the weeks to come. PrimaCom’s Chief Operating Officer, Jens Kircher, underlines: „For us, operatively speaking, the marketing alliance with Level 3 is a great step forward. With one single strike, we multiply the reach of our play out center and thus ensure it lasting profitability at the same time. This alliance allows other cable network operators the immediate participation in PrimaCom’s advanced technical platform.” About Level 3 Communications Level 3 is an international communications and information services company. The company operates one of the largest Internet backbones in the world, is one of the largest providers of wholesale dial-up service to ISPs in North America and is the primary provider of Internet connectivity for millions of broadband subscribers, through its cable and DSL customers. The company offers a wide range of communications services over its 20,000-mile broadband fiber optic network including Internet Protocol (IP) services, broadband transport, collocation services, and patented Softswitch-based managed modem and voice services. Its Web address is www.Level3.com. The company offers managed IP and information services through its subsidiaries, Genuity Managed Services, (i)Structure and Software Spectrum. For additional information, visit their respective web sites at www.genuity.com, www.softwarespectrum.com, and www.i-structure.com. About PrimaCom AG PrimaCom (Neuer Markt Frankfurt: “PRC” or ID No. “625910” and OTC BB “PCAGY”, www.primacom.de) is a significant private cable network operator with over five percent market share in Germany and the Netherlands. PrimaCom offers a wide range of analog, digital and interactive broadband services. Customers, connected to the upgraded 862 MHz networks, have access to more than 100 TV and radio programs, to interactive Video on Demand, and to high speed Internet. PrimaCom currently passes two million homes and serves 1.3 million subscribers, 1.0 million in Germany and 300,000 in the Netherlands. -------------------- This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Because these statements apply to future events, they are subject to risks and uncertainties that could cause actual results to differ materially, including PrimaCom's absence of an operating history subsequent to the Multikabel Acquisition and its transformation to a broadband communications company, its possible future need for additional financing, competitive factors and restrictions imposed by existing and possible future debt instruments. Contacts: PrimaCom Alexander Hoffmann EVP, Investor Relations, PrimaCom AG, Mainz Phone: +49 6131 - 944 520 Fax: +49 6131 - 944 509 Email: [email protected] Lawrence A. Williams Director, PrimaCom Marketing & Development GmbH Phone: +49 6131 944 681 Fax: +49 6131 944 699 Level 3 Uwe Nickl VP Sales/Managing Director Deutschland, Level3 Communications GmbH Phone: +49 69 50608060 Fax: +49 69 50608207 .