March 12, 2002 -- Qwest Communications International Inc. said it received an informal inquiry from the Denver regional office of the Securities and Exchange Commission (SEC) requesting voluntary production of documents. Qwest intends to respond fully to this request, which was received in a letter Friday, March 8, 2002.

According to the company, the matters identified by the SEC as the focus of the informal inquiry have previously been the subject of disclosure by Qwest and have been widely reported in the investment community and in the media. The matters relate to three areas of Qwest's accounting policies, practices and procedures in 2000 and 2001, including revenue recognition and accounting treatment of (i) sales of optical capacity assets (often referred to as Indefeasible Rights of Use or "IRUs"), particularly sales to customers from whom the company agreed to purchase optical capacity; (ii) the sale of equipment by Qwest to customers from which Qwest bought Internet services or to which Qwest contributed equity financing, including equipment sales to KMC and Calpoint; and (iii) Qwest Dex, particularly changes in the production schedules and lives of some directories. The SEC informed Qwest that this informal inquiry is not an indication that it or its staff believes any violation of law has occurred, nor should Qwest consider the inquiry an adverse reflection on any entity or security.

Qwest has stated, and continues to believe, that its accounting policies, practices and procedures for all periods, including 2000 and 2001, comply with all applicable requirements. There can be no assurance that the SEC will agree. Qwest believes the issues that may be raised by the inquiry in connection with the three types of transactions described above do not relate to a material amount of revenues or earnings before interest, taxes, depreciation and amortization ("EBITDA"), on either an as reported or pro forma normalized basis, during either period. However, due in part to the relatively small amounts of net income (loss) and earnings (loss) per share during these periods, they may relate to a material amount of net income (loss) or earnings (loss) per share, on an as reported or pro forma normalized basis, during those periods.

The company says that the revenues attributable to all sales of optical capacity by Qwest in 2000 and 2001, including sales to customers from which Qwest also purchased optical capacity, were approximately 2.8 percent and 5.1 percent of total reported revenues in those periods and 4.7 percent of total pro forma revenues in 2000. The revenues attributable to all sales of internet equipment to customers from which Qwest bought internet services (the only types of equipment sales Qwest believes fit within this category of information requested), were approximately 0.1 percent and 0.9 percent of total reported revenues in 2000 and 2001 and 1.7 percent of total pro forma revenues in 2000. The revenues attributable to changes in the production schedules and lives of directories of Qwest Dex in the relevant periods were approximately 0.2 percent and 0.2 percent of total reported revenues in 2000 and 2001 and 0.2 percent of total pro forma revenues in 2000.

For 2002 and thereafter, Qwest does not expect sales of optical capacity (IRUs), the sale of internet equipment or changes in the production schedule or lives of directories to have a material effect on Qwest's financial condition or results of operations. As Qwest previously announced, it does not anticipate making any optical capacity asset sales in 2002 due to changes in market demand. Qwest has also previously announced it has no plans to sell equipment in 2002 in any exchange transaction or otherwise, other than routine sales of customer premises equipment in the ordinary course of business.

Qwest said the $1.5 billion senior note offering announced March 7 by Qwest Corporation, a wholly owned subsidiary of Qwest Communications International Inc., is expected to be completed on schedule Tuesday, March 12, 2002, subject to satisfaction of customary closing conditions.

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