Business News - McLeodUSA Expands Territory

Posted: 08/1999

McLeodUSA Expands Territory

McLeodUSA Inc., Cedar Rapids, Iowa, has agreed to acquire Access Communications Inc.
and SJ Investments Inc., both of Salt Lake City, which operate as Access Long Distance.
Under the terms of the agreement, McLeod will pay approximately 1.9 million shares of
144(a) unregistered McLeodUSA stock and about $50 million in cash, and will assume about
$97 million in Access debt.

The acquisition will enable McLeodUSA to expand into Arizona, New Mexico, Oregon and
Washington and provide total coverage of Denver-based US WEST Inc. territory. It will
increase the company’s addressable voice and data market by 23 percent and raise the
10-year estimated market potential from $65 billion to more than $80 billion, according to
the company.