Local competition: WinStar launches breakthrough marketing program. free local phone service until the Year 2000. Company unveils extensive built-out network in over 1,000 newly connected buildings in key markets - WinStar Communications - Company Business and Marketing

EDGE, On & About AT&T, Nov 2, 1998

WinStar Communications, Inc. Tuesday launched an unprecedented breakthrough marketing campaign - "Project Millennium" - that will include free local phone service to business customers until the year 2000. This exciting offer will be made to customers in more than 1,000 newly connected commercial buildings in 13 of the 27 markets in which WinStar currently provides fixed wireless broadband telecommunications and information services, allowing WinStar to share the overwhelming cost advantages of its network with its customers. Even beyond the year 2000, participating customers will continue to enjoy double-digit savings every day over the local exchange carriers' base rates. Project Millennium WinStar customers will also receive a flat long distance rate of 9 cents per minute, 24-hours a day, with no conditions. As part of its ambitious national network rollout, WinStar is extending this offer to more than 1,000 specially targeted buildings that are newly connected to its network. WinStar will pick up the tab on local phone service -- up to $1,000 per month -- until the year 2000 for first-time customers in designated "WinStar buildings" who sign a three year contract between October 31, 1998 and January 31, 1999. "Project Millennium is a leapfrog strategy that will make WinStar the undeniable marketing leader in the local phone business," said Nathan Kantor, WinStar's President and Chief Operating Officer. "Project Millennium will be as powerful to the local business customer as `Friends and Family' was to the long distance customer and it will forever change the way that telecommunications services are sold in the local market. People already know us for our innovative building-centric marketing strategies, such as our lobby events and our very targeted attention-grabbing direct mail, and Project Millennium will take us to a whole new level. "Because these specially targeted buildings are now on the WinStar network, we will be able to add new customers quickly and efficiently," Mr. Kantor continued. "Consequently, Project Millennium will allow us to share the overwhelming cost advantages of our network with our customers and give them a true alternative to the local exchange companies." WinStar currently has over 3,500 building access rights in its 27 markets. Over 1,000 of these buildings were chosen to be part of the campaign in 13 of those cities. As a result of this program, WinStar expects to significantly increase its penetration in these buildings and dramatically raise the overall percentage of customer lines on its network. "Until today, no one outside WinStar knew how extensively we had built out our network or that we had set aside these buildings for this special promotion," said William J. Rouhana, Jr., WinStar's Chairman and Chief Executive Officer. "By increasing the number of on-net customer lines through this promotion, we will dramatically increase gross margins, which will contribute immediately to WinStar's bottom line. Project Millennium, combined with our new $2 billion partnership with Lucent, gives us a powerful one-two punch. By providing us the financial muscle to expand our network buildout to even more buildings in even more cities, the Lucent partnership makes every year a new Millennium for us." WinStar recently entered into a $2 billion strategic relationship with Lucent Technologies to expand the buildout of its broadband network to 100 cities worldwide. The Lucent relationship propels WinStar to the leadership position among independent telecommunications companies that are challenging the local exchange carriers at the local level because it gives WinStar the flexibility and resources to build the world's first end-to-end broadband network.

Cities involved in the promotion include:
Atlanta, GA                Chicago, IL         Houston, TX
Baltimore, MD              Dallas, TX          Los Angeles, CA
Boston, MA                 Denver, CO          New York, NY
Philadelphia, PA
San Diego, CA
San Francisco, CA
Washington, DC

WinStar Communications, Inc. is a facilities-based national local communications company, serving business customers in major markets throughout the U.S. The company provides local and long distance phone service and high speed data, Internet access and information services. WinStar provides these Wireless Fiber services over its own network, using its licenses in the 28 and 38 GHz spectrum.