Qwest Reports First Quarter 2008 Results

DENVER, May 6, 2008 — Qwest Communications
International Inc. (NYSE: Q) reported steady operating results for the
first quarter of 2008. Adjusted EBITDA totaled $1.14 billion with
adjusted EBITDA margins of 33.6 percent as data, Internet and video
revenue grew by 9 percent compared to the first quarter of
2007. Reflecting the firstquarter of recording income tax expense at
normal effective rates since 2001, Qwest reported earnings of $157
million, or $0.09 per diluted share in the first quarter 2008, compared
to $240 million, or $0.12 per diluted share, in the first quarter 2007.

While maintaining steady financial performance, Qwest made
significant strides executing on its strategic initiatives. Among the
milestones reached since the beginning of the year were an agreement
with Verizon Wireless that represents a fundamental shift in how Qwest
provides wireless services to its customers; the launch of two new
fiber-optic Internet services for Mass Market customers; and the
continued acceleration of Business Markets revenue growth on a
year-over-year basis. Other accomplishments included an initiative to
further reduce costs through a voluntary separation program, changes to
the company’s segment reporting structure and continued progress on the
$2 billion share repurchase program.

“Since the beginning of the year, we have demonstrated notable
progress on our strategies for success, including announcing a new
wireless model and executing on our fiber-to-the-node build-out, which
is ahead of plan for the year,” said Edward A. Mueller, Qwest chairman
and CEO. “In addition, we continue to effectively compete for customers
in a challenging economic climate.”

FINANCIAL RESULTS

Revenue

Qwest reported total operating revenue of $3.4 billion for the first
quarter 2008. Total revenue declined 1.4 percent year over
year. Results reflect the impact of industry consolidation and
long-distance pricing pressure in Wholesale Markets offset by 3.1
percent growth in Business Markets while Mass Markets revenue was flat.

Continuing customer demand for higher speeds and greater
functionality in data products, such as consumer broadband and
enterprise iQ Networking services, contributed to total data, Internet
and video services revenue growing 9 percent year over year to $1.3
billion. Total data, Internet and video services revenue now represents
nearly 40 percent of operating revenue.

Expenses

Total operating expenses declined by 1.6 percent to $2.9 billion
compared to the first quarter of 2007 while absorbing investments in
brand development and Business Markets sales force. General,
administrative and other operating expenses led expense reductions with
a year-over-year decline of 6.9 percent as a result of lower headcount
and one-time litigation charges in 2007. Depreciation and amortization
for the quarter declined year over year by $36 million, or 5.9 percent,
due to the continuation of disciplined capital expenditures relative to
historic levels.

Adjusted EBITDA and Net Income

Qwest reported adjusted EBITDA of $1.14 billion in the quarter,
which was flat sequentially and down $30 million from the first quarter
of 2007. Adjusted EBITDA margin expanded nearly 50 basis points during
the quarter to 33.6 percent vs. 33.1 percent in the fourth quarter of
2007. Adjusted EBITDA results exclude $45 million in severance charges
mostly related to the voluntary separation plan offered in March to
certain local network employees supporting the traditional telephone
business.

Net income for the quarter was $157 million compared to $240 million
in the prior year. As a result of the reversal of the valuation
allowance against deferred tax assets in 2007, Qwest began recording
income tax expense at normal effective rates in the first quarter
resulting in $99 million of income tax expense compared to $2 million
in the first quarter of 2007. As a result, income tax expense impacts
on net income differ year over year. Income before income taxes was
$256 million for the quarter, an increase of 5.8 percent compared to
the first quarter of 2007.

“I am pleased with our financial progress in the quarter,”
said John W. Richardson, Qwest executive vice president and CFO.
“Changes to our reporting segments and cost detail will aid
stakeholders in following our progress as we continue to focus on
selling into our strategic product set, stemming access line losses and
driving costs out of the business resulting in expanded EBITDA margins.”

SEGMENT RESULTS

To reflect the way the company now manages its business and
provide increased visibility to results, as of the first quarter, Qwest
changed its segment reporting from legacy segments,
wireline, wireless and other, to three market-based segments – Business
Markets, Mass Markets and Wholesale Markets.

To summarize, the financial and operating results for the company’s three segments during the quarter were:

Business Markets

Business Markets reported revenue of $995 million in the first
quarter, up 3.1 percent year over year as data and Internet revenue
grew 6.9 percent. Data and Internet revenue growth continues to be
driven by Qwest’s strategic products, which grew 29 percent over the
same period a year ago. Sequentially, strategic products were down 3.6
percent due to typical procurement cycle impacts on data equipment
revenue.

Investment in an expanded sales force led to higher Business
Markets segment expenses. As a result, year-over-year segment income
declined by 4.1 percent to $379 million. The year-over-year increase in
facility, network and other expenses tracked with revenue growth at 3.1
percent. Sequentially, segment income expanded by 4.4 percent on lower
expenses associated with lower equipment revenue.

Qwest is serving as the official telecommunications provider
for the 2008 Democratic National Convention to be held in August in
Denver. The company also will be the official communications provider
for the 2008 Republican National Convention to be held in September in
Minneapolis-Saint Paul.

In April 2008 Gartner, Inc., released its, “1H08 U.S. Network
Service Providers Magic Quadrant,” in which Gartner positioned Qwest in
the leaders quadrant for national network services.

Mass Markets

Mass Markets revenue was $1.48 billion in the quarter, a 0.7
percent decline compared to the prior year. Data, Internet and video
revenue growth of 20.7 percent was offset by declines in both voice and
wireless services revenue due to competition and economic pressures,
particularly in markets most affected by the housing industry.

Sequential revenue was essentially flat, reflecting similar
trends among voice, wireless and data revenues. Mass Markets segment
income was $717 million for the quarter, up $21 million, or 3.0
percent, sequentially. Segment expenses declined resulting in segment
margins of 48.4 percent, steady to first quarter 2007 results.

Increased bundle penetration and a growing number of customers
taking higher broadband speeds drove improvements in consumer ARPU,
which increased 7.8 percent to $55 from $51 a year ago.

Qwest Broadband subscribers increased 90,000 in the quarter to reach
2.7 million, up 17.2 percent from a year ago. In April, the company
launched Qwest Connect® Titanium (connection speeds up to 12 Mbps) and Qwest Connect® Quantum (connection
speeds up to 20 Mbps), the latest Internet services powered by Qwest's
ongoing fiber-to-the-neighborhood (FTTN) network expansion. Details
regarding these new services can be found at www.qwest.com/residential/internet/fiber-optics.html. The new services will be rolled-out in 23 of Qwest's top markets across 10 states throughout the year.

Qwest added 50,000 net DIRECTV subscribers in the quarter for
a total of 699,000 video subscribers – an increase of 42 percent from
the end of the first quarter 2007.

Yesterday, Qwest and Verizon Wireless announced a 5-year
agreement for Qwest to market and sell the complete line of Verizon
Wireless services to Qwest’s consumer, business and government
customers. Beginning this summer, Qwest’s consumer customers will be
able to buy Verizon Wireless products and services via Qwest’s call
centers, retail stores and kiosks and online at Qwest.com.

Wholesale Markets

Wholesale Markets reported revenue of $841 million in the
quarter, down 7.0 percent year over year largely due to long-distance
revenue impacted by industry consolidation and pricing. Data and
Internet revenue was up 3.0 percent year over year, reflecting
Wholesale’s increased focus on data products. Sequential revenue was
flat as voice services revenue declines stabilized.

Segment income was $493 million, down 2.0 percent year over
year as a result of revenue declines of 7.0 percent during the same
period. Sequentially, segment income was down $28 million largely due
to a favorable one-time settlement in the fourth quarter of
2007. Segment margin improved by more than 300 basis points year over
year, reflecting efforts to maximize Wholesale Markets margin.

In February, Qwest tied for top honors in customer service, network
quality and voice pricing from wholesale customers in Atlantic-ACM’s
“2008 Domestic Wholesale Report Card” survey. This was the fourth
consecutive Atlantic-ACM survey that recognized Qwest Wholesale as
best-in-class for customer service.

CASH FLOW, CAPITAL SPENDING AND INTEREST

Adjusted free cash flow for the quarter was $56 million
compared to $150 million during the first quarter of 2007. Cash flow
contributions by operating activities were offset by higher capital
spending, including the continued deployment of fiber-to-the-node in
targeted markets. Total capital investment for the quarter was $416
million compared to $318 million in the prior year. Sequentially,
capital expenditures were down $89 million due primarily to timing on
real estate construction and IT software purchases.

Interest expense declined 7.4 percent year over year to $261
million for the first quarter as a result of retiring higher coupon
debt instruments during 2007.

Due to the agency nature of our new wireless partnership, we will
recognize revenues on a net basis. As a result, wireless revenue could
be lower than under our previous arrangement. Excluding the impact of
wireless revenues, Qwest expects full-year revenue results in line with
prior guidance. We continue to be comfortable with previously stated
goals for EBITDA, capital expenditures and free cash flow for the year.

BALANCE SHEET

Qwest reduced net debt by $304 million to $13.5 billion
compared to the first quarter of 2007. Net debt increased $310 million
sequentially as a result of cash and investments declining from $1.1
billion at the end of 2007 to $800 million at the end of the first
quarter.

RETURNS TO SHAREHOLDERS

During the first quarter, Qwest paid its first dividend to
shareholders in six years of $0.08 per share. Total dividend payments
were $142 million. Combined with continued progress on its $2 billion
share repurchase program, Qwest has returned in excess of $370 million
to its shareholders through May 1 of this year.

On April 17, Qwest announced that a dividend of $0.08 per
share will be paid on May 30, 2008, to all stockholders of record at
the close of business on May 9, 2008.

Conference Call Today

As previously announced, Qwest will host a conference call for
investors and the media today at 9 a.m. EDT with Edward Mueller, Qwest
chairman and CEO, and John W. Richardson, Qwest executive vice
president and CFO. A live webcast and replay of the call is available
at www.qwest.com/about/investor/events.