Citizens Utilities Arranges $3 Billion Revolving Credit Facility.

STAMFORD, Conn.--(BUSINESS WIRE)--Nov. 1, 1999--

Citizens Utilities (NYSE:CZN,CZNPr) announced today that it has arranged with a syndicate of banks a $3 billion revolving credit facility.

Chase Securities Inc. acted as advisor and arranger on behalf of the Chase Manhattan Bank as administrative agent. Citibank, N.A. and Bank of America acted as co-syndication agents and First Union National Bank acted as documentation agent.

Earlier this year, Citizens announced that it was acquiring 800,000 telephone access lines in 11 states from GTE and US WEST for approximately $2.5 billion in cash.

Citizens plans to access the commercial paper market to temporarily fund these acquisitions, which will close next year on a staggered basis upon receipt of state regulatory approvals. The credit facility will be used to support the company's commercial paper program and will be available for general corporate purposes, including other acquisitions.

The company intends to permanently fund the acquisitions with the proceeds from the sale of its public services businesses. Citizens announced on October 18 that it had sold its water and wastewater operations, Citizens Water Resources, for $835 million. Sales of Citizens' gas and electric operations are expected to be completed by year-end.

"We are very pleased with the broad-based interest in the credit facility as evidenced by its significant over-subscription," said Robert J. DeSantis, Citizens' chief financial officer, vice president and treasurer. "The commitments we have received from our long-standing commercial banking partners -- as well as several new partners -- demonstrate the bank market's positive view of our telecommunications acquisitions and public services divestiture strategies.

"Combined with $400 million of our existing credit commitments, we now have $3.4 billion of committed credit to temporarily fund acquisitions and other corporate needs," DeSantis said.

Citizens Utilities provides telecommunications services and public services including gas distribution, electric distribution, water distribution and wastewater treatment services to approximately 1.9 million customers in 22 states. Citizens also owns 82% of Electric Lightwave Inc. (Nasdaq:ELIX), a facilities-based, integrated communications provider that offers a broad range of services to telecommunications-intensive businesses throughout the United States.

This document contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the statements. These and all forward-looking statements are only predictions or statements of current plans that are constantly under review by the company. All forward-looking statements may differ from actual results because of, but not limited to, changes in the local and overall economy, changes in market conditions for debt and equity securities, the nature and pace of technological changes, the number and effectiveness of competitors in the company's markets, success in overall strategy, weather conditions, changes in legal or regulatory policy, changes in legislation, the company's ability to identify future markets and successfully expand existing ones and the mix of products and services offered in the company's target markets. These important factors should be considered in evaluating any statement contained herein and/or made by the company or on its behalf. The foregoing information should be read in conjunction with the company's filings with the U.S. Securities and Exchange Commission including, but not limited to, reports on Forms 10-K and 10-Q. The company does not intend to update or revise these forward-looking statements to reflect the occurrence of future events or circumstances.