Level 3 Completes Progress Telecom Acquisition

Level 3 Communications Inc. said today it has completed the approximately $137 million acquisition of Progress Telecom LLC, a wholesale network services company based in St. Petersburg, Fla.

Level 3 paid total consideration of 19,695,793 unregistered shares of its common stock and $68.5 million in cash. The purchase price remains subject to adjustment for the working capital balance assumed by Level 3 as of the closing date, the company said.

Level 3 did agree not to touch certain parts of Progress Telecom’s wireless assets. The wholesaler has commercial services agreements in place to provide transport services and operation support to the former Progress Telecom businesses, now operating as PT Access Networks. Progress Telecom will become a wholly owned subsidiary of Level 3; it will do business as Level 3 Communications.

Progress Telecom was jointly owned by Progress Energy Inc. and Odyssey Telecorp Inc.

Level 3 Communications Inc. www.level3.com

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