Qwest Reports Fourth Quarter And Full Year 2007 Results

Continued Growth In Net Income And Free Cash Flow

DENVER — Qwest Communications International Inc. (NYSE: Q) today reported fourth-quarter and full-year 2007 results highlighted by substantial free cash flow, net income and earnings per share growth. The quarter also marked the 13th consecutive quarter of year-over-year adjusted EBITDA margin expansion. For the quarter, Qwest reported earnings of $366 million, or $0.20 per diluted share, compared to $194 million, or $0.10 per share, in 2006. Normalizing for $106 million of income tax benefits, net income for the quarter was $260 million, or $0.14 per diluted share.

Bundles

Customers continue to respond to the value of Qwest’s full-featured bundle offerings, which include voice services and features, high-speed Internet access, a national wireless offering and integrated TV services through Qwest’s own ChoiceTV or its partnership with DIRECTV, Inc.

The company’s bundle penetration increased to 62 percent in the quarter, compared to 57 percent a year ago. Sales of voice packages with three or more products continue to reduce churn and drive growth. Customers adding more features and services or increasing broadband speeds drove higher consumer ARPU, which increased 7.8 percent to $55 from $51 a year ago.

At the end of 2007, Qwest had a total of 11.5 million retail access lines. While retail access lines declined 6.5 percent from the end of 2006, the company’s mass market connections – including broadband, video, wireless and voice customers – remained flat compared to the prior year at 12.8 million.

Qwest Broadband

Qwest Broadband subscribers grew 95,000 in the fourth quarter compared to an increase of 165,000 in the fourth quarter 2006. For the full year 2007, Qwest added 473,000 subscribers to end the year with a total of 2.6 million – a 22 percent increase over 2006.

During the year, Qwest accelerated its deployment of fiber-to-the-node in the first of 20 markets the company is targeting through the end of 2008. Initial results include a significant increase in take-rates for Qwest’s highest speed broadband offering. By the end of 2008, Qwest expects to reach 1.5 million homes with more robust speeds up to 20 Mbps.

DIRECTV® Partnership

Qwest added 44,000 net DIRECTV subscribers in the quarter to end the year with a total of 649,000 video subscribers, an increase of 58 percent in total video customers from the end of 2006. Qwest and DIRECTV’s strategic partnership allows Qwest to offer DIRECTV digital satellite television services to residential customers across the entire Qwest 14-state region.

Selected Consolidated Data

                                                  Three Months Ended and as of December 31,
                                                                     2007    2006  % Change
Mass markets retail connections (in thousands):
  Mass markets access lines (1)...................................  8,694   9,422    (7.7)%
  Broadband subscribers (3).......................................  2,611   2,138    22.1 %
  Video subscribers (2)(3)........................................    649     411    57.9 %
  Wireless subscribers............................................    824     801     2.9 %
Total mass markets retail connections............................. 12,778  12,772       -- %

(1) Certain prior period revenue and access line amounts have been reclassified to conform to the current period presentation.
(2) Video subscribers have been adjusted by approximately 13,000 subscribers as of December 31, 2006 to conform to our current presentation of video subscribers.
(3) Broadband and video subscribers include certain business customers.