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INTEL INVESTS $200M IN WILLIAMS STOCK

Williams Communications, Inc. and Intel have signed an agreement for Intel to purchase $200 million in Williams Communications stock. In return, Williams Communications will become a provider of network transport for the Web-hosting computer centers being established by Intel’s new Internet Data Services business. The first of these nationwide data centers offering wholesale and resale Web-based hosting and applications will be established in central California. In addition, Williams Communications’ Multi-Service Broadband Network may also be a provider of Internet Protocol transit services for Intel Internet data centers.Intel’s private investment in the Class A common stock of Williams Communications Group, Inc. is expected to occur simultaneously with Williams’ previously announced initial public offering for Williams Communications in the early summer of 1999, and are subject to certain closing conditions. Williams Communications will use Intel’s investment in its business, focusing on network construction and business expansion funding."We believe that the investment from Intel and the agreement with Intel Internet Data Services to purchase our fiber optic network services is a key milestone for Williams Communications," said Howard Janzen, President and Chief Executive Officer of Williams Communications. "We look forward to working with Intel to provide high-speed, reliable service for their Web-hosting business.""This agreement with Williams Communications is an important step, as we assemble the infrastructure elements needed for the Web-hosting services that will be provided by Intel Internet Data Services," said Mike Aymar, Vice President and General Manager of Intel Internet Data Services.For more information, visit the Williams Communications Web site at www.williams.com, or visit Intel’s Web site at www.intel.com.

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