The Carlyle Group and Welsh Carson Close Qwest Dex East Deal

New York, NY -The Carlyle Group and Welsh, Carson, Anderson & Stowe today closed the first part - Dex East - of their purchase of Qwest Communications' yellow page directories business. This first part of the transaction is valued at $2.75 billion. The purchase price of the whole company is $7.05 billion, representing the largest U.S. buyout since 1989 and the second largest in U.S. history. The second part of the transaction - Dex West - is expected to close in 2003.

James A. Attwood, Jr., Carlyle Managing Director said, “Many people have worked quite hard to make this closing possible. I thank my Carlyle and Welsh Carson colleagues, the bankers, Qwest officials, and our investors for their commitment and attention to detail.” Anthony J. de Nicola, Welsh Carson Managing Director, said, “Today is an important milestone. We have twin goals now: Working to make Dex East all that it can be and bringing Dex West to fruition. I am confident we will succeed in both.”

Financing for the Dex East transaction, including fees and expenses, consists of the following:

• Equity of $655 million (evenly split between Carlyle and Welsh Carson)


• Bank Debt of $1,280 million


• $450 million of 9 7/8% Senior Notes due 2009


• $525 million of 12 1/8% Senior Subordinated Notes due 2012

JP Morgan acted as M&Amp;A advisor to Carlyle and Welsh Carson on the transaction. The lead banks in the financing were JP Morgan, Bank of America, Deutsche Bank, Lehman Brothers and Wachovia.