FOR IMMEDIATE RELEASE
April 8, 1998
NTT to make strategic Investment
in US-based Verio Inc.
Nippon Telegraph and Telephone Corporation (NTT) today (April 7 U.S. Time) signed
agreements with Verio Inc., a U.S.-based Internet service provider.
Under the terms of the agreements,
1)NTT will acquire an interest in Verio equal to the lesser of $100 million
(USD) or 12.5% of Verio's Common Shares. *1
2)will appoint one member to Verio's board of directors
3)will work with Verio to jointly deploy a comprehensive range of IP services
to offer NTT customers
NTT believes that this strategic alliance will enable provision of the enhanced IP
services such as Internet VPN (Virtual Private Network).
Currently the NTT Group is providing global services under the brand name of Arcstar.
*2 By enhancing capability of IP services in USA through this strategic investment,
NTT believes that customers will be able to enjoy more integrated and advanced global
services of Arcstar.
NTT chose Verio as an IP related US strategic partner because of Verio's established
position in the fast-growing U.S. Internet market and its excellent U.S. IP platform.
*1 The exact number and price of shares to be acquired will be determined at the
time of the purchase, which will occur concurrently with Verio's initial public
offering.
*2 Arcstar is a unified brand name for global services provided by the NTT Group.
Outline of Verio Inc.
Founded:
March, 1996
Location:
Denver, Colorado U.S.A.
President & CEO:
Justin L. Jaschke
Services:
Internet connectivity service and enhanced IP services such
as Web Hosting, Co-location, and Network Security.
Market Presence:
33 of the top 50 US Metropolitan Statistical Areas(MSAs),
including about 190 Points of Presence (POP) locations.
80,000 user accounts.
Current Largest
Shareholders:
Brooks Fiber Properties
Centennial Fund, L.P.
Norwest Equity Partners
Providence Equity Partners
Over 70% of the outstanding stocks are owned by the above
shareholders.
