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Prodigy Revises 2001, 2002 Guidance; Upward Adjustment Due to Operating Efficiencies, Subscriber Growth, Lower Costs.

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AUSTIN, Texas--(BUSINESS WIRE)--Oct. 3, 2001

Prodigy Communications Corporation (Nasdaq:PRGY), a leading national Internet service provider (ISP) serving the largest number of DSL Internet subscribers, today increased its year-end 2001 EBITDA, revenue and subscriber projections, as well as its 2002 guidance, in anticipation of its third-quarter earnings.

For 2001, Prodigy is increasing its EBITDA estimate from $40 million to $42 million reported in the second quarter to $52 million to $55 million.

Prodigy also increased its net revenue guidance from $355 million to $365 million reported in the second quarter to $360 million to $370 million.

Also for year-end 2001, Prodigy anticipates it will have between 3.5 million and 3.7 million owned and managed subscribers, up from 3.4 million to 3.7 million previously estimated in the second quarter.

"This is the second time this year Prodigy has upwardly revised its year-end guidance, due to continued progress in our efforts to control expenses and better-than-expected growth in our subscriber base," said Charles Foster, chairman of Prodigy. "Our business model continues to achieve our goals, and the introduction later this year of our completely redesigned portal and software will further enhance Prodigy's leadership position among Internet service providers."

2002 Guidance

Given its strong performance in 2001, Prodigy expects EBITDA in 2002 to be in the range of $90 million to $95 million, representing a more than 50 percent increase over 2001. It also expects net revenue to be in the range of $455 million to $480 million, representing a 20 percent increase over 2001. In the second quarter, Prodigy anticipated that in 2002, EBITDA would be 50 percent higher than 2001, and net revenues would grow 20 percent over 2001 revenues.

EBITDA is defined as net income/loss plus minority interest, depreciation and amortization, amortization of subscriber acquisition costs, and amortization of subscriber incentives.

Prodigy will announce its third-quarter results on October 19. Prodigy will host a 10 a.m. EDT conference call that day; the call-in number will be provided at a later date. The call will be simultaneously broadcast over the Internet.

About Prodigy Communications Corporation (

Prodigy Communications Corporation (Nasdaq:PRGY) is one of the nation's largest Internet service providers serving both owned and managed dial and DSL subscribers. With its alliance with SBC Communications, Prodigy is the industry leader in serving DSL subscribers. Prodigy delivers fast and reliable Internet access and user-friendly Internet-based products, services and information via a nationwide network covering more than 850 locations in all 50 states, allowing more than 90 percent of the U.S. population to access Prodigy's dial service with a local telephone call. Prodigy features superior content, e-mail and e-mail attachment capabilities, Prodigy Instant Messaging(tm), Prodigy Chat(tm), and Prodigy Online Communities, combined with the accessibility and freedom of direct access to the World Wide Web for all users. ProdigyBiz offers a powerful suite of specially designed Internet products and services for small business owners. Prodigy(R) en Espanol(tm), is the nation's first-ever, fully bilingual Spanish/English-language Internet service created especially for the U.S. Spanish-speaking population.

This release contains forward-looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the intense competition in Prodigy's industry, subscriber turnover, disruption in Prodigy's network services or in other services provided by third parties, the challenges of integrating the Internet businesses of Prodigy and SBC Communications Inc., the possible failure to achieve the anticipated benefits of the agreements between Prodigy and SBC, the possible unavailability of sufficient financing to Prodigy as needed, as well as the risk factors detailed from time to time in Prodigy's periodic reports and registration statements filed with the Securities and Exchange Commission. Prodigy's business and operations are operated by a limited partnership, called Prodigy Communications Limited Partnership, of which Prodigy is the general partner and owns an approximate 57 percent interest and SBC Communications owns an approximate 43 percent interest.
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Publication:Business Wire
Date:Oct 3, 2001
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