The transaction includes the equity of Verizon Hawaii Inc., which operates707,000 switched wireline access lines, as well as the services and assets ofVerizon Long Distance, Verizon Online and Verizon Information Services (directory publishing) in Hawaii.
In 2003, these businesses had sales of $610 million, operating income of $58 million and depreciation expense of $111 million.
The Verizon Wireless operations and assets in Hawaii are not included inthe sale. Verizon will also retain two units in the state that provideservices for federal government customers, Verizon Federal Network Systems andVerizon Federal Inc.
The approximately 1,700 Verizon Hawaii company employees will remainemployees and are included in the transaction.
Verizon expects the transaction to close in 2005, contingent on regulatory approvals. In addition, Carlyle has obtained financing commitments, and the closing of thatfinancing is a condition to the closing of the transaction.