Lakeside Technology Center Sold
El Paso Global Networks Acquires Property from Carlyle Group

April 25, 2001 -- El Paso Global Networks has bought the Lakeside Technology Center, a large Chicago carrier hotel, as part of a larger financial partnership with the facility's previous owner, The Carlyle Group.
The two companies said they have also entered into an agreement to develop and operate network interconnection facilities - known as "meet-me" rooms - in three other major carrier hotels. Terms of the deal were not announced.
The meet-me rooms will be housed in Market Post Tower in San Jose, the Atlantic Telecom Center in New York City, and One Wilshire in Los Angeles, which Carlyle has under contract to purchase by no later than November.
Lakeside Technology Center is one of America's largest carrier hotels, high-tech facilities that house network carriers and service providers and provide access to regional and national communication networks.
El Paso Global Networks, a subsidiary of El Paso Corporation, will also build a meet-me room at Lakeside.
"These network interconnection facilities will be designed to provide superior service to carriers, including improved time-to-market, network reliability and capital efficiency,'' said Greg Jenkins, chief executive officer of El Paso Global Networks.
Meet-me-rooms are centrally located within carrier hotels, and allow tenants easy access to one another's networks.
"Historically, carrier hotel landlords have not emphasized customer service or efficiency of interconnections, but have focused principally on leasing building space," said Jenkins. "The Carlyle Group, however, has exhibited the foresight to address such concerns, enabling their nationwide portfolio of properties to be more attractive to telecommunication companies.''
Carlyle officials also touted the benefits of the deal.
"We are confident that El Paso Global Networks' expertise, technological sophistication and professional management practices will contribute to the successful operation of these facilities,'' said Robert Stuckey, managing director of The Carlyle Group.
"We are committed to operating these meet-me rooms in a carrier-neutral manner and believe that Global Networks' understanding of the dynamics of the telecommunications industry will enhance the efficiency and value of our properties,'' Stuckey added.
J.P. Morgan acted as financial advisor to The Carlyle Group and Merrill Lynch & Co. acted as financial advisor to El Paso Global Networks.
The Carlyle Group is one of the world's largest private equity firms managing buyout, venture, real estate, high-yield and energy funds. Headquartered in Washington, D.C., Carlyle has developed a leading real estate practice over the last several years and has acquired over $5 billion of real estate assets throughout the United States since 1995.
El Paso Global Networks is the telecommunications unit of El Paso Corporation, the largest and most broadly based natural gas company in the world.