January 6, 1999
MindSpring Purchases Netcom Assets From ICG Communications, Inc.
ATLANTA--(BUSINESS WIRE)--Jan. 6, 1999--MindSpring
Enterprises, Inc. (Nasdaq:MSPG)
today announced a definitive agreement with ICG
Communications, Inc.(Nasdaq:ICGX) to purchase
the Netcom customer base of approximately 400,000
individual Internet access accounts, 3,000
dedicated Internet access accounts, and 18,000 web
hosting accounts in the United States.
MindSpring will pay ICG Communications approximately
$245 million, including $215 million in cash
and $30 million in MindSpring stock.
The sale also encompasses various assets used in
serving those subscribers, including leased
operations facilities in San Jose, Calif. and Dallas.
MindSpring also acquires all U.S. rights held by
ICG Communications to the "Netcom" name, as well as
select software and equipment. ICG
Communications will retain the network assets and sell
MindSpring wholesale access to the network
under a separate network services agreement. The
Netcom operations in Canada and the United
Kingdom are not included in this transaction.
"This acquisition is consistent with our mission to
become a major player in the telecommunications
industry of the future," said Charles M. Brewer,
chairman and CEO of MindSpring Enterprises. "We
believe Netcom's assets and employees will enable
MindSpring to expand the scope and depth of
top-notch service that we currently provide to our
customers. We look forward to a long-term
networking relationship with ICG."
"We believe this acquisition, when completed, will put
MindSpring over the 1 million dial-up subscriber
mark," continued Brewer. "Not only have we
demonstrated the ability to drive organic growth and
successfully manage acquisitions, but we have done it
profitably since the fourth quarter of 1997."
"This sale and the related network services agreement
with MindSpring is consistent with our business
plan to focus on our core telecommunications
operations, and expand our customer base by building
stronger relationships with Internet service
providers," said J. Shelby Bryan, ICG Communications'
president and chief executive officer. "We are
confident that MindSpring will continue to provide our
Netcom subscribers with affordable and quality service."
The Company expects the transaction to be completed
later this quarter, subject to certain customary
closing conditions and regulatory approvals.
About ICG Communications
ICG Communications, Inc. (NASDAQ: ICGX) is a leading
integrated communications provider (ICP)
offering high-quality telecommunications services
through its subsidiary operations. With headquarters
in Englewood, Colo., ICG has extensive switched
fiber-optic networks and offers local and long
distance, enhanced telephony and data services in
California, Colorado, the Ohio Valley and parts of
the southeastern United States. ICG also is a leading
designer and installer of copper, fiber and
wireless infrastructure for buildings and campuses.
Further information is available on ICG's web site
located at http://www.icgcomm.com.
About MindSpring
MindSpring Enterprises, Inc. (NASDAQ:MSPG) is a
leading Internet service provider focused on
doing an exceptional job of serving its customers, its
employees, its owners and its community by
following its Core Values And Beliefs
(http://www.mindspring.net/aboutms/cvb/). MindSpring's dial-up
subscribers can browse the World Wide Web, send
electronic mail, participate in informative online
chats and access more than 20,000 newsgroups.
MindSpring offers local Internet service throughout
the United States, and is also a leading provider of
Web hosting and domain registration services.
Formore information about MindSpring and its services,
visit the Web site
(http://www.mindspring.net/) or call 1-888-MSPRING to
set up an account.
MindSpring has received the following Awards & Recommendations:
-- 1998 MVP Award for Best National ISP, "It's a
no-brainer for Internet access and small-biz Web
hosting." -- PC Computing, January 1999.
-- 1998 HOC 100 Editor's Gold Award for Internet
Service Provider, "Neither consumer-cute nor
no-frills/no-fun, MindSpring is both the easiest and
most efficient ISP for home-based workers." --
Home Office Computing, December 1998.
-- World Class Award for Best ISP, "It's hard to
improve on what readers tell us is the best support in
the business," -- PC World, July 1998.
-- Buy It recommendation of MindSpring as the national
ISP providing the best value, ". . . its software
selection beats the pants off the competition, and
MindSpring's technical support gets our nod as the
best overall," -- CNET: The Computer Network, November
1997 (Reiterated July 1998).
-- Best Buy, "This company prides itself on being
'patient,'" -- Smart Money Interactive, June 1998.
-- "Best Buy" for Web Hosting, Home Office Computing, April 1998.
When used in this press release, the words discussing
conditional or future-oriented expressions are
intended to identify forward- looking statements. Such
statements are subject to risks and uncertainties
that could cause actual results to differ materially
from the possible results referred to in such
forward-looking statements. Such risks and
uncertainties may include, but are not limited to: the
Corporation's successful integration of the new
subscribers purchased in this transaction and the
successful management of growth; conditions and
developments in the Internet and technology markets
and in the general economy; and other risks and
uncertainties described from time to time in the
Corporation's press releases and Securities and
Exchange Commission reports and filings.
CONTACT:
MindSpring Enterprises, Inc., Atlanta
Kirsten Witt, 404/287-0924
[EMAIL PROTECTED]
or
Ed Hansen, 404/287-0893
[EMAIL PROTECTED]
_______________________________________________________
George Matyjewicz, C.M.O. mailto:[EMAIL PROTECTED]
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