Aug 8, 2000 "This deal combines complementary assets -- Verizon's position in the consumer market and NorthPoint's presence with business customers -- to provide the scale to fuel growth and deliver the full benefits of high-speed connections," said Lawrence T. Babbio, Verizon vice chairman and president. "The new company will expand broadband choice for customers, providing a superior alternative to cable."

Aug 8, 2000 In the teleconference, Lawrence Babbio, Verizon's president and Liz Fetter, his counterpart at NorthPoint. said that the aim of the merger, which has been approved by the boards of both firms, is to create a new force in national DSL services.

Babbio said the deal allows the company to offer all of its customers access to the full benefits of high-speed connections, as well as a wider choice of services "....all a superior alternative to cable," he told his listeners.

Aug 9, 2000 The new NorthPoint is targeting SBC for leadership in the DSL rollout competition. "We are reaching as many customers as anyone in the industry," Babbio said. "[In terms of] homes, coverage and households, we are ahead of their coverage rates."

Aug 14, 2000 Instead of cash, Verizon will get an infusion of energy for its DSL rollout, which has been blasted with criticism for being too slow. Verizon vice chairman and president Lawrence Babbio characterized its new NorthPoint effort as "entrepreneurial" and said Verizon was about to break free of the service and support issues that have plagued its rollout

Aug 14, 2000 The NorthPoint deal vaults Verizon into the No. 2 DSL spot. More importantly, NorthPoint's fast-moving, entrepreneurial reputation could give Verizon's DSL initiative a much- needed shot in the arm in the race to win market share from high-speed cable-modem services.

Sep 6, 2000 "The new NorthPoint will provide a much-needed alternative to cable in delivering data and entertainment over the Internet," said Lawrence T. Babbio, Verizon vice chairman and president. "Our investment today will enable NorthPoint to fund its network expansion and continue to enhance its service delivery, support systems and product suite so that the new NorthPoint will hit the ground running as a broadband industry leader."

Oct 2000 Verizon Vice Chairman and President Lawrence T. Babbio predicted the new strategy will "expand broadband choice for customers by providing a superior alternative to cable." What neither pointed out was that Verizon now has a national DSL footprint outside of the original Bell Atlantic and GTE service areas, one that covers as much of the United States as MediaOne Group did when it was acquired by AT&T for $58 billion. OnePoint further adds to this footp rint, bringing tbe total number of MDUs wired by Verizon up to 650,000 in 31 major markets.

Nov 29, 2000 Claiming that the merger agreement allowed it to back out of the deal if NorthPoint's problems were not resolved, Verizon cited the ISP's "continuing decline in revenues, an erosion of its customer base, an increase in expenses due to write-offs for increased bad debt, and, as a result, a material increase in net losses."

Nov 30, 2000 Today, Larry Babbio, Verizon's vice chairman and president, said in a conference call that the company executed an escape clause in the merger agreement based on adverse changes in NorthPoint's business.

"About 31 percent of NorthPoint's installed lines have delinquent accounts," said Babbio. "This is a deteriorating business, operational or financial condition."

Babbio, the person who oversees Verizon's US wireline business, said that while the company "regrets" that it cannot proceed with the deal with NorthPoint, it remains committed to being a leading DSL provider.

Fred Salerno, Verizon's vice chairman and chief financial officer, said that killing the deal with NorthPoint allows the company to "continue our strategy of DSL growth and give back to our shareholders."

Salerno said that Verizon's previous earnings estimates for 2001 of $3.06 to $3.10 per share factored in dilution from the NorthPoint merger. He said the company's new earnings estimates were $3.13 to $3.17 per share.

"Dilution for NorthPoint was estimated at 12 cents per share. We are adding 7 cents to the share price in 2001," Salerno explained.

Mar 2, 2001 Verizon sought to justify its position based upon NorthPoint's revised third-quarter 2000 results, announced nine days earlier. However, the stated reason was merely a pretext for Verizon to avoid its financing obligations, as Verizon was aware of NorthPoint's revised third-quarter results as of the beginning of the Class Period, and nonetheless publicly reaffirmed the merger and Verizon's funding commitment.

June 2002 Lawrence T. Babbio Jr., president of Verizon Communications, told an audience in Atlanta last month that "digital subscriber lines, which cost about $50 a month today, should conceivably be 40 to 50 percent more expensive." Said Babbio, "The industry started out too low."