Unisource Italia to be Acquired by Morgan Stanley Dean Witter Capital Partners

HOOFDDORP, Netherlands (PROTEXT) - Morgan Stanley Dean WitterCapital Partners ("MSDW Capital Partners") has agreed to acquireUnisource Italia ("the Company"), a subsidiary of Dutch groupUnisource NV and one of the leading Internet Protocol ("IP")connectivity and value-added services providers in Italy servingthe corporate Internet service provider ("ISP") market. The transaction provides Unisource Italia with the opportunityunder independent and consolidated ownership to strengthen itsposition as a leading IP provider in the Italian market and torealize its substantial growth potential. MSDW Capital Partnershas agreed to acquire Unisource Italia in partnership withmanagement. Under the new ownership, the Company will pursue anaggressive growth plan through the expansion of its existingbusiness and selective acquisitions. Unisource Italia Launched in 1992, Unisource Italia was the first operator inItaly to provide Internet capacity and connectivity. Its businessactivities are described in detail in the notes attached to thisrelease. Vendors Unisource Italia is currently a subsidiary of Unisource NV,which is owned jointly by three leading internationaltelecommunications companies, namely KPN Telecom of theNetherlands, Telia of Sweden and Swisscom of Switzerland. Rothschild Italia S.p.A. acted as advisor to the management ofUnisource Italia. Unisource NV has been advised by LehmanBrothers in this transaction. Commenting on the transaction, Jules Delahaije, President andCEO of Unisource NV, said: "I believe this transaction is asignificant achievement and I am confident of the enormouspotential it brings for the future of Unisource Italia. UnisourceItalia can build on the excellent reputation and the well-recognized position of Morgan Stanley Dean Witter CapitalPartners. At the same time it will enable the Company tostrengthen its business and create new opportunities in the fast-growing Italian IP market." Commenting for MSDW Capital Partners, Alan E. Goldberg,Chairman, said: "We are extremely pleased to be backing UnisourceItalia. We believe Unisource Italia is well positioned tocapitalize on the exceptional growth potential of the corporateInternet services market." NOTES: 1. The business of Unisource Italia Unisource Italia was the first operator to provide Internetcapacity and connectivity in the Italian market and has sincegrown to become a leading IP service provider in Italy. UnisourceItalia offers its customers a one-stop shopping solutionconsisting of basic and value-added IP services, such as webdesign, hosting, housing, Intranet and Extranet, internationaland long distance voice and data services. In 1998, the companywas also the first to launch an integrated e-commerce platformsolution in the Italian market. Unisource Italia currentlyoperates a data network and a voice network covering 7 cities inNorthern and Central Italy. The company is currently integratingand upgrading its two network structures. The full deployment andgeographical expansion will be completed by the end of 2001,growing from 8 points of presence (PoPs) to 50 PoPs, and tofurther increase the networks bandwidth capacity by the end of2001. This will enable the company to service its customersthrough a network, which would be among the most technologicallyadvanced in the Italian marketplace. Unisource Italia has built asolid base of approximately 1,100 active corporate customers,including ISPs, multinational corporations, large companies andsmall and medium sized companies, plus voice services resellers.Customers include Gucci, Whirlpool, Bulgari, IMI and FAO. 2. Unisource NV Unisource is a pan-European telecommunications group offeringa broad range of services to providers and business customers inEurope. Unisource is owned equally by KPN Telecom of TheNetherlands, Telia of Sweden and Swisscom of Switzerland. Todaythe Unisource group comprises D-Plus, one of Germany's leadingmobile service providers and Unisource Italia, in Milan. In July1999, following AT&T's exit as a shareholder, Unisource alsobecame the 100% owner of AUCS Communications Services, which ismanaged under an agreement by Infonet Corp. Unisource NV is basedin Hoofddorp, The Netherlands. 3. Morgan Stanley Dean Witter Private Equity Morgan Stanley Dean Witter Private Equity is the privateequity business of Morgan Stanley Dean Witter & Co. (NYSE: MWD),the global financial services firm. Private Equity is part ofMorgan Stanley Dean Witter's asset management business and iscomprised of Capital Partners, Venture Partners and EmergingMarkets. MSDW Capital Partners MSDW Capital Partners manages a group of funds that invest incompanies operating in a broad range of industries includingtelecommunications, financial services, healthcare, technology,energy and chemicals on a global basis. Capital Partners hasinvested over $3 billion in more than 60 companies since itsinception 15 years ago. Capital Partners' current fund, MorganStanley Dean Witter Capital Partners IV, is capitalised at $3billion. MSDW Venture Partners MSDW Venture Partners manages a group of funds that invest inemerging growth companies within the information technology andhealthcare industries. Since its inception 15 years ago, VenturePartners has invested over $450 million in more than 90companies. Venture Partners' current fund, Morgan Stanley VenturePartners III, is capitalised at $285 million. ots Original TextService: Unisource NV Internet: http://www.newsaktuell.deContact: Lotta Rohman of Unisource NV, +31-23-568-6294; or PaulDownes, UK, of Merlin Financial, +44-171-606-1244; or GiovanniCroce, Italy, of Bonaparte 48, +39-02-880-0971, both forUnisource NV Web site: http://www.unisource.com

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