Williams To Be Spun Off From Parent

TULSA, Okla., April 3 – In a move that will allow Williams Communications to strengthen its market position as a broadband network services provider, the company will be spun off by parent company Williams. The board of directors of Williams announced plans to distribute approximately 400 million shares, or about 95 percent of the Williams Communications common stock it currently owns, to holders of Williams common shares as a tax-free dividend. "Williams Communications accelerated its financial performance during its first full year as a publicly held company, driven by year-over-year growth in recurring network revenue," said Howard Janzen, president and CEO of Williams Communications. "Given our revenue growth, our solid financing plan, our fully operational network and our stable customer base, this spin off is the natural evolution of a business strategy begun in 1998, when we re-entered the telecommunications space."

Williams Communications doubled its revenue over the past year and completed a 33,000-mile fiber optic network connecting 125 cities a year earlier than planned.