Major Content Company Signs Contract to Purchase Dark Fiber from Zayo on New Phoenix to Dallas Fiber Route

Follow-on sale beyond anchor tenant generates profitability on route

BOULDER, Colo.–(BUSINESS WIRE)–

Zayo Group Holdings, Inc. (ZAYO), a global provider of communications infrastructure, today announced that it has sold dark fiber services to a major content company on its new Phoenix to Dallas route. The sale creates a positive unlevered return on the expected net capital investment and a positive cash flow yield since the initial anchor customer sale in early 2015. The fiber route will connect Phoenix, Tucson, El Paso and Dallas.

The Phoenix to Dallas route will provide customers with a full continuous ring between Denver, Dallas, Phoenix, Los Angeles, the San Francisco Bay Area and Salt Lake City. It also will provide two potential routes from the Southwest to Chicago.

“In addition to this follow-on customer sale, this unique route has generated a robust funnel of other sales opportunities that further support our investment in the Phoenix to Dallas route. We continue to see strong demand for both long haul and metro dark fiber across our primary customer segments, including carriers, content, cable, retail, financial and healthcare companies,” said Dave Jones, executive vice president, Dark Fiber Solutions at Zayo.

Zayo’s U.S. intercity dark fiber network, which includes approximately 15,000 route miles of owned network nationwide, addresses the requirements of enterprise, carrier, cable and content companies for scalable, high-capacity infrastructure. Zayo has announced additional intercity construction projects, including Sacramento to Salt Lake City, Washington, D.C. to Atlanta and Omaha to Dallas.

The Phoenix to Dallas route is scheduled to be completed in late 2017. For more information on Zayo, please visit www.zayo.com.

About Zayo Group

Zayo Group Holdings, Inc. (ZAYO) provides communications infrastructure services, including fiber and bandwidth connectivity, colocation and cloud services to the world’s leading businesses. Customers include wireless and wireline carriers, media and content companies and finance, healthcare and other large enterprises. Zayo’s 87,000-mile network in the U.S. and Europe includes extensive metro connectivity to thousands of buildings and data centers. In addition to high-capacity dark fiber, wavelength, Ethernet and other connectivity solutions, Zayo offers colocation and cloud services in its carrier-neutral data centers. Zayo provides clients with flexible, customized solutions and self-service through Tranzact, an innovative online platform for managing and purchasing bandwidth and services. For more information, visit zayo.com.

Forward-Looking Statements

This press release contains a number of forward-looking statements. Words, and variations of words such as “believe,” “expect,” “plan,” “continue,” “will,” “should,” and similar expressions are intended to identify our forward-looking statements. No assurance can be given that future results expressed or implied by the forward-looking statements will be achieved and actual results may differ materially from those contemplated by the forward-looking statements. These forward-looking statements involve risks and uncertainties, many of which are beyond our control. For additional information on these and other factors that could affect our forward-looking statements, see our risk factors, as they may be amended from time to time, set forth in our filings with the SEC, including our 10-K dated September 18, 2015. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this press release, except as required by applicable law or regulation.

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