Williams Completes Spinoff of Williams Communications

Apr 24, 2001, 01:00 ET from Williams

    TULSA, Okla., April 24 /PRNewswire Interactive News Release/ -- Williams
 (NYSE:   WMB) on Monday completed the spinoff of Williams Communications
 (NYSE:   WCG) through a tax-free distribution of 398.5 million WCG shares to WMB
 shareholders.  This distribution amounted to approximately 95 percent of the
 WCG shares held by WMB.
     After the close of market on April 23, Williams shareholders were issued
 0.822399 of a share of Williams Communications common stock for each share of
 Williams common stock held.  Cash will be issued in lieu of fractional shares.
     On April 12, Williams mailed to shareholders an information statement that
 provided the distribution ratio and tax basis information.  Using the
 calculation outlined in the information statement and the closing prices of
 Williams and Williams Communications on April 23, shareholders would allocate
 91.8 percent of pre-distribution tax basis to their Williams shares and the
 remaining 8.2 percent to their Williams Communications shares (including any
 fractional interest).  However, Williams encourages its shareholders to
 consult with a tax advisor regarding the application of this calculation.
     The holding period for capital gains purposes of the WCG shares received
 as a result of the distribution is the same as the holding period for the WMB
 shares, provided the WMB shares were held as capital assets on the
 distribution date.
     More detail is available in the information statement, which is available
 at www.williams.com/investors/invest.html.
     Williams shareholders who have questions about their new WCG shares should
 contact Williams Communications investor relations, (918) 573-0220.
     Williams shareholders in need of information about their WMB shares can
 continue to call Williams investor relations, (800) 600-3782.
 
     About Williams
     Williams, through its subsidiaries, connects businesses to energy,
 delivering innovative, reliable products and services.  Williams information
 is available at www.williams.com.
 
     Portions of this document may constitute "forward-looking statements" as
 defined by federal law.  Although the company believes any such statements are
 based on reasonable assumptions, there is no assurance that actual outcomes
 will not be materially different.  Any such statements are made in reliance on
 the "safe harbor" protections provided under the Private Securities Reform Act
 of 1995.  Additional information about issues that could lead to material
 changes in performance is contained in the company's annual reports filed with
 the Securities and Exchange Commission.
 
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SOURCE Williams
    TULSA, Okla., April 24 /PRNewswire Interactive News Release/ -- Williams
 (NYSE:   WMB) on Monday completed the spinoff of Williams Communications
 (NYSE:   WCG) through a tax-free distribution of 398.5 million WCG shares to WMB
 shareholders.  This distribution amounted to approximately 95 percent of the
 WCG shares held by WMB.
     After the close of market on April 23, Williams shareholders were issued
 0.822399 of a share of Williams Communications common stock for each share of
 Williams common stock held.  Cash will be issued in lieu of fractional shares.
     On April 12, Williams mailed to shareholders an information statement that
 provided the distribution ratio and tax basis information.  Using the
 calculation outlined in the information statement and the closing prices of
 Williams and Williams Communications on April 23, shareholders would allocate
 91.8 percent of pre-distribution tax basis to their Williams shares and the
 remaining 8.2 percent to their Williams Communications shares (including any
 fractional interest).  However, Williams encourages its shareholders to
 consult with a tax advisor regarding the application of this calculation.
     The holding period for capital gains purposes of the WCG shares received
 as a result of the distribution is the same as the holding period for the WMB
 shares, provided the WMB shares were held as capital assets on the
 distribution date.
     More detail is available in the information statement, which is available
 at www.williams.com/investors/invest.html.
     Williams shareholders who have questions about their new WCG shares should
 contact Williams Communications investor relations, (918) 573-0220.
     Williams shareholders in need of information about their WMB shares can
 continue to call Williams investor relations, (800) 600-3782.
 
     About Williams
     Williams, through its subsidiaries, connects businesses to energy,
 delivering innovative, reliable products and services.  Williams information
 is available at www.williams.com.
 
     Portions of this document may constitute "forward-looking statements" as
 defined by federal law.  Although the company believes any such statements are
 based on reasonable assumptions, there is no assurance that actual outcomes
 will not be materially different.  Any such statements are made in reliance on
 the "safe harbor" protections provided under the Private Securities Reform Act
 of 1995.  Additional information about issues that could lead to material
 changes in performance is contained in the company's annual reports filed with
 the Securities and Exchange Commission.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X25357601
 
 SOURCE  Williams