Verizon to Acquire Terremark, Boosting Cloud Strategy through Powerful Unified Enterprise IT Delivery Platform


Acquisition Will Accelerate 'Everything as-a-Service' Strategy by Leveraging the Companies' Collective Strengths

Wholly Owned Subsidiary to Retain Terremark Name, Extend Leadership in Rapidly Evolving Global Cloud Services Market

NEW YORK and MIAMI, Jan. 27, 2011 - In a move that will decisively reshape the rapidly evolving global business technology solutions market, Verizon Communications Inc. (NYSE, Nasdaq: VZ) and Terremark Worldwide Inc. (Nasdaq: TMRK) today announced a definitive agreement under which Verizon will acquire Terremark, a global provider of managed IT infrastructure and cloud services, for $19.00 per share in cash, or a total equity value of $1.4 billion.

Pursuant to the agreement, Verizon anticipates that it will commence a tender offer between Feb. 10, 2011, and Feb. 17, 2011, for all shares of common stock of Terremark. The tender offer price constitutes a premium of 35 percent per share over today's closing price. The transaction is subject to the valid tender of a majority of the shares of Terremark; the expiration or early termination of the Hart-Scott-Rodino antitrust waiting period; and other customary closing conditions. The Board of Directors of Terremark has unanimously approved the transaction, and the transaction was unanimously approved by the directors of Verizon present and voting. Verizon has also entered into agreements with three stockholders of Terremark to tender their shares into the offer, representing approximately 27.6 percent of the outstanding voting shares of Terremark. Verizon expects to close the tender offer late in the first quarter of 2011.

This transaction will accelerate Verizon's "everything-as-a-service" cloud strategy by delivering a powerful portfolio of highly secure, scalable on-demand solutions to business and government customers globally through a unified enterprise IT platform and unique business cloud offerings that leverage the companies' collective strengths.

Verizon plans to operate the new unit as a wholly owned subsidiary retaining the Terremark name and with Terremark's current management team continuing to manage the company.

"Cloud computing continues to fundamentally alter the way enterprises procure, deploy and manage IT resources, and this combination helps create a tipping point for 'everything-as-a-service,'" said Lowell McAdam, president and chief operating officer of Verizon. "Our collective vision will foster innovation, enhance business processes and dynamically deliver business intelligence and collaboration services to anyone, anywhere and on any device."

Manuel D. Medina, chairman and CEO of Terremark, said: "This transaction, first and foremost, provides Terremark's stockholders with the opportunity for immediate, maximum value and liquidity for their investment in our common stock. We are very proud of all we've accomplished in building and developing a world-class business that delivers industry-leading services. This agreement represents an exciting opportunity to accelerate our strategy and serve our enterprise and government customers with even greater innovation on a global scale with Verizon's resources and extensive reach. We will continue to work with leading hardware, software, systems integrator and carrier partners to build on our unique business model."

Headquartered in Miami, Terremark is a widely recognized Infrastructure-as-a-Service leader with a proven track record of delivering cloud-based resources with the highest levels of security and availability in the industry. Operating 13 data centers in the U.S., Europe and Latin America, Terremark combines secure cloud computing, colocation and managed hosting services into a seamless hybrid environment. Its Enterprise Cloud platform provides some of the world's largest companies and U.S. government agencies with on-demand access to secure and reliable computing resources.

Verizon is a global leader in driving better business outcomes for mid-sized and large enterprises and government agencies. The company operates more than 220 data centers across 23 countries, including 19 premium centers and five smart centers. Verizon combines integrated communications and IT solutions, professional services expertise with high-IQ global IP and mobility networks to enable businesses to securely access information, share content and communicate. Verizon is rapidly transforming to a cloud-based "everything-as-a-service" delivery model that will put the power of enterprise-grade solutions within the reach of every business, wherever and whenever needed. Find out more at www.verizonbusiness.com.

Verizon was represented by Goldman Sachs and Weil, Gotshal & Manges, and Terremark was represented by Credit Suisse Securities (USA) LLC and Greenberg Traurig.

About Verizon

Verizon Communications Inc. (NYSE, Nasdaq:VZ), headquartered in New York, is a global leader in delivering broadband and other wireless and wireline communications services to mass market, business, government and wholesale customers. Verizon Wireless operates America's most reliable wireless network, serving 94.1 million customers nationwide. Verizon also provides converged communications, information and entertainment services over America's most advanced fiber-optic network, and delivers innovative, seamless business solutions to customers around the world. A Dow 30 company, Verizon employs a diverse workforce of more than 194,000 and last year generated consolidated revenues of $106.6 billion. For more information, visit www.verizon.com.

About Terremark

Terremark Worldwide (Nasdaq:TMRK) is a leading global provider of IT infrastructure services delivered on the industry's most robust and advanced technology platform. Leveraging data centers in the United States, Europe and Latin America with access to massive and diverse network connectivity, Terremark delivers government and enterprise customers a comprehensive suite of managed solutions including managed hosting, colocation, disaster recovery, security, data storage and cloud computing services. Terremark's Enterprise Cloud computing architecture delivers the agility, scale and economic benefits of cloud computing to mission-critical enterprise and Web 2.0 applications and its DigitalOps® service platform combines end-to-end systems management workflow with a comprehensive customer portal. More information about Terremark Worldwide can be found at www.Terremark.com.

VERIZON'S ONLINE NEWS CENTER: Verizon news releases, executive speeches and biographies, media contacts, high-quality video and images, and other information are available at Verizon's News Center on the World Wide Web at www.verizon.com/news. To receive news releases by e-mail, visit the News Center and register for customized automatic delivery of Verizon news releases.

Verizon will host a webcast on Friday, Jan. 28, to discuss the transaction. The webcast will begin at approximately 8:30 a.m. Eastern time and will be available at www.verizon.com/investor or www.terremark.com/investor-relations.aspx. Access instructions and presentation materials will be available on the sites prior to the start of the webcast.

SOURCE Verizon Communications Inc.; Terremark Worldwide

CONTACT:

Peter Lucht,

Verizon,

+1-617-743-6809,

peter.lucht@verizon.com;

Xavier Gonzalez,

Terremark,

+1-305-961-3134,

xgonzalez@Terremark.com

Web Site: www.verizon.com

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