Another First for Verizon - Company Gets Nod to Market Long-Distance Data Services to Federal Agencies in Northeast Corridor

NEW YORK - The U.S. General Services Administration (GSA) has authorized Verizon to compete to offer long-distance private line data transmission services to federal agencies in major metropolitan areas along the I-95 corridor in the Northeast - an area stretching from Massachusetts to Virginia.

Verizon will now offer long-distance data services to the company's single largest customer, the federal government. These dedicated transmission capabilities will be available to federal agencies in Baltimore; Boston; Buffalo, N.Y.; Norfolk, Va.; and Philadelphia, as well as the New York and Washington, D.C., metropolitan areas. Verizon enterprise long-distance services are offered through Verizon Select Services Inc., the company's long-distance affiliate.

"This decision by the GSA is good news for Verizon's federal customers," said Shelley Murphy, head of federal sales for Verizon Enterprise Solutions Group. "Verizon is now able to offer the federal government a full range of communications services - local and long-distance, voice and data. The cities initially targeted for our long-distance data service are a perfect match with the Enterprise Advance network expansion already completed along the I-95 corridor.

"The addition of long-distance dedicated transmission services to our portfolio positions the company as an alternative carrier in the federal marketplace and will enable Verizon to assist federal departments and agencies in vendor diversification and the development and implementation of continuity of operations plans," Murphy said.

Verizon's selection comes 14 months after the launch of Verizon Enterprise Advance, the company's initiative to deploy an all-new national broadband network capable of delivering high-capacity data services. Enterprise Advance leverages Verizon's long-distance capabilities and links the company's powerful metropolitan area networks.

"Verizon's entry into the federal long-distance market has a dual benefit for the federal government," said Stephanie Atkinson, senior analyst - vertical markets, In-Stat/MDR, a national market research firm. "Not only will the government benefit from increased competition, but it gains access to one of the most powerful communications networks in the country. Private line services from another national carrier meet the federal government's requirements for redundancy, reliability and high bandwidth."

In-Stat/MDR estimates that the federal government will spend approximately $6 billion on data services in 2004. During the same period, Fortune 1000 companies and the federal government will spend a combined total of $23.6 billion on private line or dedicated transmission services.

Private line service, also referred to as dedicated transmission service, offers a direct point-to-point connection - specifically dedicated to a customer's use - between two sites and can carry any type of voice, video or data application. This technology provides a high-bandwidth infrastructure capable of supporting mission-critical applications such as real-time data backup and storage, continuity of operations, multi-media streaming, e-government and instant access to critical information.

As Verizon continues the build-out of Enterprise Advance, the company intends to propose contract modifications to offer additional long-distance voice and data services to federal agencies across the United States.

For more information on other GSA contracts held by Verizon or the company's participation in the FTS or MAA programs, please call or e-mail one of the media relations contacts listed at the beginning of this press release.

Verizon Enterprise Solutions Group manages the design, operation and maintenance of end-to-end integrated network solutions for large business, government and education customers across the United States. With over 7,200 employees in 35 states, Verizon Enterprise Solutions Group offers a complete range of basic and advanced communications products and services to meet the voice, video, data and IP-related needs of its customers. In addition, over 5,200 field operations personnel support enterprise customers nationwide. In the enterprise market, Verizon Select Services Inc. provides Verizon long-distance service. For more information on products and services available through Verizon Enterprise Solutions Group, visit www.verizon.com/enterprisesolutions.

Verizon Communications

A Fortune 10 company, Verizon Communications (NYSE:VZ) is one of the world's leading providers of communications services, with approximately $68 billion in annual revenues. Verizon companies are the largest providers of wireline and wireless communications in the United States. Verizon is also the largest directory publisher in the world, as measured by directory titles and circulation. Verizon's international presence includes wireline and wireless communications operations and investments, primarily in the Americas and Europe. For more information, visit www.verizon.com.

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