Corvis Corporation to Change Name to Broadwing Corporation.COLUMBIA Columbia, cities, United States Columbia (kəlŭm`bēə). 1 City (1990 pop. 75,883), Howard co., central Md., between Washington, D.C., and Baltimore. , Md. -- Corvis Corporation (Nasdaq:CORV) --Reflects Primary Focus as All-Optical Service Provider of Voice, Data and Media --Change Follows Two Successful Acquisitions in the Past 18 Months --Corvis Equipment Business to Become Subsidiary of Broadwing Corporation Broadwing Corporation is a data, voice, and media solutions company based in Austin, Texas, USA. Enabled by its 20,000-mile All-Optical-Network and 20 nation-wide HDTV transmitting and delivering centers, Broadwing Communications provides communications solutions and --Announces Reverse Stock Split and Stock Dividend to Bring Stock Price and Capital Structure in Line with Peers in Service Provider Marketplace Corvis Corporation (Nasdaq:CORV) today announced that it would change its name to Broadwing Corporation effective October October: see month. 8, 2004, reflecting the company's primary focus as a premier supplier of voice, data and media network services to enterprises, strategic carriers as well as agencies within the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Government. The company also said that it would initiate a reverse stock split and subsequent stock dividend to bring its stock price and capital structure more in line with its peers in the telecommunications service provider A Telecommunications Service Provider or TSP is a type of Communications Service Provider that has traditionally provided telephone and similar services. This category includes ILECs, CLECs, and mobile wireless companies. marketplace and to better reflect the company's business model as a nationwide provider of communication services. "We believe we have managed a successful and significant evolution of our business with the acquisition of Broadwing Communications and Focal Communications. Our primary business has become selling advanced communications services to enterprises, strategic carriers and government agencies throughout the United States," said Dr. David R. Huber, Corvis Corporation chairman and chief executive officer. Reorganizing under the Broadwing name provides many advantages, the company said. The company said it found the Broadwing name the most visible brand for the company and one that commands respect in the marketplace. It believes the name is best associated with network quality and innovation, customer service and award-winning solutions such as its expanded "Connect Family of Services," for which the company received Frost & Sullivan's 2004 Product Line Strategy Leadership award earlier this year. Broadwing Corporation will trade under the (BWNG) ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors on the NASDAQ National market beginning October 8, 2004. Until that time, the company will continue to operate under the Corvis name and will continue to trade under the (CORV) ticker symbol on the NASDAQ National market. Broadwing Corporation will become the holding company for Broadwing Communications, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , its service provider division based in Austin, Texas. Broadwing Corporation will continue to operate its advanced optical communications Optical communications The transmission of speech, data, video, and other information by means of the visible and the infrared portion of the electromagnetic spectrum. equipment business based in Columbia, Maryland Columbia is a census-designated place and planned community in Howard County, Maryland, United States. It is a suburb of Baltimore, and, to a lesser degree, Washington, DC. It began with the idea that a city could enhance its residents' quality of life. under the Corvis name, selling primarily to the United States Government. Dr. Huber will serve as chairman and chief executive officer of the new Broadwing Corporation. Mark Spagnolo, former CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Broadwing Communications, LLC, has announced he will be leaving the business after a six-month transition period supporting the company in a consulting role. "Over the past 18 months, Mark has successfully helped the company evolve to one of the premier communications service providers A Communications Service Provider or CSP is a company that transports information electronically. The term encompasses public and private companies in the wireline, wireless, Internet, cable, satellite, and managed services businesses. in the country," said Dr. Huber. "We want to thank Mark for his leadership and the many strides he helped the company make in expanding our customer base, reducing costs and moving us towards profitability." "I am especially proud of the significant progress we've made as a team in realigning the Broadwing business since the close of the acquisition last year," said Mark Spagnolo. "I believe that the experienced management team of industry veterans we put in place at Broadwing will build upon this success and move the company forward." Dr. Huber founded and is chairman and CEO of Corvis Corporation. He pioneered many of the technologies used in the Broadwing nationwide network and developed the next-generation service provider business model that he has executed for Broadwing since the close of the acquisition last year. That model includes harnessing the power of Broadwing's all-optical network A communications network that works completely in the optical domain. It uses optical switches connected by optical fibers. See optical switch and optical computer. to provide bandwidth on demand, enable new innovative services, increase reliability and back the best customer support in the industry. "The change in our name, and the concurrent reorganization of our corporate structure, is designed to support our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth strategy," Dr. Huber continued. "We will continue to make the name Broadwing synonymous with synonymous with adjective equivalent to, the same as, identical to, similar to, identified with, equal to, tantamount to, interchangeable with, one and the same as agility, quality, reliability and innovation." Reverse Stock Split The company also said that its Board of Directors, under the discretionary authority it received at its Annual Meeting of Shareholders held May 9, 2003, has approved, as of July 28, 2004, a 1-for-20 reverse stock split. As a result of the reverse split, every twenty shares of common stock will be combined into one share of common stock. The reverse stock split affects all of the company's common stock, stock options and warrants outstanding. Subsequent Stock Dividend The company also stated that immediately following the reverse split it would enact a one time, one-for-one stock dividend for all shareholders of record as of October 8, 2004. As a result of the stock dividend, shareholders of record will receive one additional share of common stock for every share of common stock held as of the record date. The stock dividend affects all of the company's common stock, stock options and warrants outstanding on the record date. "Our decision on the timing of these initiatives included careful consideration of all factors and the short and long-term impacts on the company and our shareholders," Dr. Huber said. "Every action we take is designed to strengthen the company for the long-term. These initiatives are consistent with our shareholder authorization The right or permission to use a system resource; the process of granting access. See access control. to take the necessary steps to exceed NASDAQ listing requirements Listing requirements Requirements, including minimum shares outstanding, market value, and income, that are laid down by an exchange for any stock to be listed for trading. ." The net effect of the reverse stock split and subsequent stock dividend should result in a 1-for-10 reduction in the number of outstanding shares and a corresponding increase in the company's stock price immediately after the actions. Full details are available in SEC reports: Forms 8-K, 10-Q and 10-K. "We believe these actions, in addition to our focus on increasing revenue, reducing costs and strengthening and preserving our balance sheet will likely attract a broader base of shareholders. "A stronger company for the long-term -- with a stock price and capital structure more representative of the industry -- is better for all shareholders," Dr. Huber concluded. The number of shares of common stock outstanding following the reverse stock split and subsequent stock dividend will be approximately 62,170,000 from 621,729,061 prior to these initiatives. The stock will begin trading on a split-adjusted basis beginning on October 8, 2004. The company said that these actions could result in reduced trading fees and commissions incurred by shareholders, since these costs are based to a significant extent on the number of shares traded. About Corvis Corvis Corporation and its consolidated subsidiary, Broadwing Communications, LLC, deliver innovative optical networking Communications between computers, telephones and other electronic devices using light. An optical network is far more reliable and has far greater potential transmission capacity than networking in the electrical domain. See optical fiber. solutions that deliver voice, video and data solutions rapidly, flexibly and at what we believe to be the lowest total cost in the industry. Broadwing Communications is an innovative provider of data, voice and video solutions to enterprise, strategic service provider, mid-market and government customers. Enabled by its one-of-a-kind, all-optical network and award-winning IP backbone, Broadwing offers a full suite of the highest quality communications products and services, with unparalleled customer focus and speed. Corvis provides service providers and government agencies with scalable optical networking equipment that dramatically reduces the overall expenses associated with building and operating networks. Corvis and its logo, Broadwing and its logo, and the Connect Family are trademarks and/or service marks of Broadwing Communications, LLC, and/or Corvis Corporation. All trademarks and service marks not belonging to Corvis or Broadwing are the property of their respective owners. Investor Note Regarding Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Statements in this press release regarding Corvis Corporation that are not statements of historical fact may include forward-looking statements, and statements regarding Corvis Corporation's beliefs, plans, expectations or intentions regarding the future are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. and Section 21E of the Securities Exchange Act of 1934, as amended. All such forward-looking statements are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Corvis Corporation's actual results could differ materially from these statements. |
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