Press Release
January 9, 2001
FORT LEE, NJ -- Everest Broadband Networks, an innovative new leader in the fast-growing Multi-Tenant Unit (MTU)
building communications market, yesterday announced a major building access deal with Crescent Real Estate Equities
Company (NYSE: CEI), one of the country's largest real estate investment trusts. Everest announced it will provide
broadband services to Crescent's tenants in 45 buildings totaling 23 million square feet of space in Dallas, Houston,
Denver, San Francisco and Miami.
Signing Crescent brings yet another premiere real estate industry leader to Everest's high profile portfolio, which
includes names like Vornado, Trump and Charles E. Smith. Launched in January, 2000 as a regional New York City-area
Building Services Provider (BSP), Everest has quickly become a North American leader by targeting key markets -
now in major cities in 24 states and five provinces of Canada - and then focusing on increasing the number of property
owners and buildings in those markets.
Crescent, a premier office property owner headquartered in Texas, owns and manages through its subsidiaries a diversified
portfolio consisting of Class A office properties, resorts, and residential developments. Notable buildings included
in this deal are: Crescent Office Towers, 200 Crescent Court, Dallas (1.3M square feet); Houston Center 1 &
2, 1331 Lamar Street, Houston (2.0M square feet); and the MCI Tower, 707 17th St., Denver (600,000 square feet).
Having just completed its first year of operations, Everest achieved its aggressive growth target for square feet
of building space under contract and now has more than 200 buildings wired and lit for broadband services - a first
year growth rate unprecedented in the Building Services Provider (BSP) market. On January 3, Everest announced
it has secured $50M in third round financing with new lead investor Exelon Capital Partners joining seed shareholders
Pequot Capital Management and SOFTBANK Venture Capital.
Everest has also increased its presence in key markets with strategic deals--with Crescent in Houston and Dallas;
with Charles E. Smith in the Greater Washington D.C. area (including the Crystal City complex); with several notable
leaders in the New York City-area (including New York's Chrysler Center and the GM Building at Trump International
Plaza); and with O&Y Properties in key Canadian markets.
Everest has been recognized by leading telecom analysts for its ability to maintain a prudent economic approach
to infrastructure investment and deployment, while maximizing long-term revenue, profitability and cash flow. This
approach avoids the cost, scalability and low tenant penetration rate issues have plagued competitors, while assuring
property owners that Everest will be able to deliver services to their tenants over the long haul. .
``Crescent is committed to providing the best choices and quality services to our customers, and it was important
to us that Everest share this commitment. Everest has demonstrated compelling service offerings and a commitment
to customer service, which are paramount considerations for us in selecting service providers for our office properties,''
said Howard W. Lovett, Crescent's VP, New Business and Technology Services.
Dov Hertz, Vice President of Real Estate Partnerships for Everest remarked ``Everest brings a greater value proposition
to the property owner and tenant base than other Building Services Providers. It is particularly gratifying to
have it validated by a premier real estate industry leader like Crescent.''
The agreement between Everest and Crescent is particularly significant in light of the recent pro-competition Federal
Communications Commission (FCC) ruling that discourages exclusive arrangements between one telecommunications carrier
and a building owner to provide services in multi-tenant unit office buildings. Everest not only supports the FCC
ruling, but has moved quickly to embrace it.
``Everest firmly believes that open competition in buildings is a win-win-win for carriers, property owners and
their tenants because it `raises the bar' in providing services,'' said Jeffrey Feldman, President and Chief Executive
Officer of Everest Broadband Networks. ``Forward-thinking property owners like Crescent, which until now had been
limited to an exclusive arrangement with a single building-centric carrier, can now promote carrier competition
in its buildings. Everest will aggressively seek out other property owners anxious to bring the benefits of competition
and Everest's unique value proposition to their buildings and tenants.''
About Crescent Real Estate Equities Company
Crescent Real Estate Equities Company, one of the country's largest real estate investment trusts, owns and manages,
through its subsidiaries, a diversified portfolio consisting of Class A office properties, luxury resorts and spas,
and residential developments. Its mission is to expand the dimensions of business for its customers and maximize
value to its shareholders by distinguishing itself as the undisputed leader in each of its businesses. Crescent
will accomplish these goals by providing exceptional customer service and asset quality and by executing a disciplined
real estate investment and operating strategy that focuses on market leadership, innovative growth opportunities,
and outstanding customer, employee and partner alliances. For more information, go to http://www.cei-crescent.com.
About Everest Broadband Networks:
Everest Broadband Networks provides high-speed Internet access, long-distance telephone service, digital broadcast
satellite TV and related broadband applications in multi-tenant commercial buildings and hotels. Everest will offer
building tenants a broad range of telephony services and advanced Internet applications such as e-mail, tools to
build Web sites, site-hosting services, e-commerce software, and virtual private networks. Everest Broadband Networks
is headquartered at The Everest Building, One Executive Drive, Fort Lee, New Jersey 07024. For more information,
visit www.everestbroadband.com or e-mail info@everestbroadband.com.
Tel: 800-918-1900. Fax:201-944-7469.
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Contact:
Everest Broadband Networks
Mike Granieri
800.918.1900 x 435
mgranieri@everestbroadband.com
or
Rubenstein Associates
Rick Matthews/Rodger Van Allen
212.843.8007/212.843.8282
rmatthews@rubenstein.com
rvanallen@rubenstein.com