Correction: Fitch Downgrades Leucadia National Corp Long-Term Issuer Rating.

NEW YORK -- (This is an amended version of a press release issued earlier today and contains a revised junior subordinated deferrable interest debentures due date.)

Fitch Ratings has lowered the long-term issuer rating on Leucadia National Corporation (Leucadia) to 'BB+' from 'BBB-'. Additionally, Fitch has lowered the ratings on the following obligations of Leucadia:

-- Senior notes due 2013 to 'BB+' from 'BBB-';

-- Senior subordinated notes due 2006 to 'BB' from 'BB+';

-- Senior subordinated convertible notes due 2014 to 'BB' from 'BB+';

-- Junior subordinated deferrable interest debentures due 2027 to 'BB-'.

The Rating Outlook is revised to Negative from Stable.

Fitch believes that the acquisition of AT&T by SBC Communications will adversely affect the financial condition of WilTel, Leucadia's largest subsidiary, and that of Leucadia, as well. Fitch would expect significant economic impairment to result should SBC utilize AT&T as its preferred provider rather than WilTel. SBC, as WilTel's primary customer, would be difficult to replace given the capacity excess that exists in the industry. A reduction in Leucadia's equity is a likely consequence in Fitch's view. Any such writedown of the WilTel investment coupled with the recent debt increases by the parent make long-term financial commitments more vulnerable.

Leucadia's parent-company-only debt to capital ratio was approximately 30% at Sept. 30, 2004. The ratings changes incorporate not only Fitch's expectation of a lower investment value of the telecommunication operations but also the reduced possibility of favorable cashflow and earnings contributions by the subsidiary to the consolidated group over time.