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LOCAL TELEPHONE COMPANY ANNUAL REPORT OF THE Name US WEST Interprise America, Inc. (Show in full the exact corporate, firm or individual name of the respondent) Located at 425 North Fairfax Drive 13th Floor Arlington, VA 2223 (Give the location, including number and street of the respondent s main business office within the state) To the ARKANSAS PUBLIC SERVICE COMMISSION COVERING ALL OPERATIONS FOR THE YEAR ENDING DECEMBER 31,2

REPORT TO THE ARKANSAS PUBLIC SERVICE COMMISSION LETTER OF TRANSMITTAL To: Arkansas Public Service Commission P.O. Box 4 Little Rock, Arkansas 7223-4 Submitted herewith is the annual report covering the operation of (Company 1 BmPri ra, I1 of Arkansas for the year ending December 3 1, 2.e. VERIFICATION COmn OF Arlington I, the undersigned, h l (Name and Title) D irector of the US WEST InterPriSe America, InC., on my oath do say that the following report has been prepared under my (Company) direction from the original books, papers, and records of said utility; that I have carefully examined the same, and declare the same a complete and comct statement of the business and affairs of said utility in respect to each and every matter and thing set forth, to the best of my knowledge, information, and belief; and I further say that no deductions were made before stating the gross revenues, and that accounts and figures contained in the foregoing statements embrace all of the financial transactions for the period in this reaort. E Subscribed and sworn to before me t hisdk day of I dw/ My Commission Expires % cornmissfan &@ @dl 31,23 (Signature of Notary) LEC - 1

REPORT TO THE ARKANSAS PUBLIC SERVICE COMMISSION GENERAL INSTRUCTIONS, DEFINITIONS, ETC. 1. 2. 3. 4. 5. 6. 7. 8. 9. Two (2) copies of this report, properly filled out and verified shall be filed with the Utility Division of the Arkansas Public Service Commission, Little Rock, Arkansas, on or before the 3 1 day of March following the close of the calendar year for which the report is made. The word "respondent" in the following inquiries means the person, firm, association or company in whose behalf the report is made. Instructions should be carefully observed, and each question should be answered fully and accurately. Where the word "none" truly and completely states the fact, it should be given to any particular inquiry. If any schedule does not apply to the respondent, such fact should be shown on the schedule by the words "not applicable." Except in cases where they are especially authorized, cancellations, arbitrary check marks, and the like must not be used either as partial or entire answers to inquires. Reports should be made out by means which result in a permanent record. The copy in all cases shall be made out in permanent black ink or with permanent black typewriter ribbon. Entries of a contrary or opposite character (such as decreases reported in a column providing for both increases and decreases) should be shown in red ink or enclosed in parentheses. Each report shall be bound in permanent form before returning to the Commission. Binding with clips is not sufficient. Answers to inquiries contained in the following forms must be complete. No answer will be accepted as satisfactory which attempts by reference to any paper, document, or return of previous years or other reports, other than the present report, to make the paper or document or portion thereof thus referred to a part of the answer without setting it out. Each report must be complete within itself. In cases where the schedules provided in this report do not contain saicient space for the information called for, or if it is otherwise necessary or desirable, additional statements or schedules may be inserted for the purpose of further explanation of accounts or schedules. They should be legibly made on paper of durable quality and should conform with this form in size of page and width of margin. This also applies to all special or unusual entries not provided for in this form. Where information called for herein is not given, state hlly the reason for its omission.. LEC - 2

REPORT TO THE ARKANSAS PUBLIC SERMCE COMMISSION 1. Each respondent is required to send, in connection with its report to this Commission s Utilities Division, one (1) copy of its latest annual report to stockholders. 11. Answers to all inquiries may be in even dollar figures, with the cents omitted and with agreeing totals. 12. Each respondent should make its report in duplicate, retaining one copy for its files for reference, in case correspondence with regard to such report becomes necessary. For this reason, several copies of the accompanying forms are sent to each utility company concerned. Give the name, title, office address, and telephone number of the person to whom any correspondence concerning this report should be addressed: Name- P- Title ReSiOMl Director Address 425 North Fairfax Drive 13th Floor Arlinqton, VA 22383 Telephone Number (73 363-31 89 Give the name, address, and telephone number of the resident agent: Name Telephone No. (51) 688-888 n Address 417 Spring Street, Little Rock, AR 7221 LEC - 3

REPORT TO THE ARKANSAS PUBLIC SERVICE COMMISSION - IDENTITY OF RESPONDENT 1. Give the exact name by which respondent was known in law at the close of the year. Use the initial word The only when it is part of the name: US WEST Interprise mrica, Inc. 2. Give the location (including street and number) of (a) the main Arkansas business office of respondent at the close of the year, and (b) if respondent is a foreign corporation, the main business ofice if not in this state: (a) NONE 3. Indicate by an X in the proper space the type of organization under which respondent was operating at the end of the year: ( ) Proprietorship, ( ) Partnership, ( ) Joint Stock Association, (x) Corporation, ( ) Other (describe below): 4. If respondent is not a corporation, give (a) date of organization, and (b) name of the proprietor or the names of all partners, and the extent of their respective interest at the close of the year: 5. If a corporation, indicate (a) in which state respondent is incorporated and (b) the date of incorporation: Mazt2h 27, 1995 Colorado 6. State whether or not respondent during the year conducted any part of its business within the State of Arkansas under a name or names other than that shown in response to inquiry No. 1 above, and, if so, give full particulars: NO 7. State whether respondent is a consolidated or merged company. If so, (a) give date and authority for each consolidation or merger, (b) name all constituent and merged companies, and (c) give like particulars as required of the respondent in inquiry No. 5 above: NO LEC - 4

REPORT TO THE ARKANSAS PUBLIC SERVICE COMMISSION I - 8. State whether respondent is a reorganized company. If so, give (a) name of original corporation, (b) date of reorganization, (c) reference to the laws under which it was reorganized, and (d) state the occasion of the reorganization, whether because of foreclosure of mortgage or otherwise, giving full particulars: N/A NO 9. Was respondent subject to a receivership or other trust at any time during the year? If so, state: (a) (b) Name of receiver or trustee: Name of beneficiary or beneficiaries for whom trust was maintained: (c) (d) (e) Purpose of the trust: Give (1) date of creating of receivership or other trust, and (2) date of acquisition of respondent: Authority by which such receivership or trust was created: 1. Did the respondent act in any of the capacities listed in paragraph (a) below during thepastyear? Nn Ifso: Indicate the applicable one by using an X in the proper space: ( ) Guarantor ( ) Surety ( ) Principal - obligor to a surety contract ( ) Principal - obligor to a guaranty contract. Insert a statement showing the character, extent, and terms of the primary agreement or obligation, including (1) names of all parties involved, (2) extent of liability of respondent, whether contingent or actual, (3) extent of liabilities of the other parties, whether contingent or actual, and (4) security taken or offered by respondent. LEC - 5

~ REPORT TO THE ARKANSAS PUBLIC SERVICE COMMISSION DIRECTORS Give the name and office addresses of all directors at the close of the year, and dates of beginning and expiration of terms. Chairman (*) and Secretary (**) marked by asterisks. Name of Director Office Address Beginning End Joseph P. Nacchio 181 California St. Denver, CO 822 PRINCIPAL OFFICERS AND KEY MANAGEMENT PERSONNEL Give the title of the principal officers, managers and key personnel and the names and office addresses of persons holding such positions at the close of the year. Title President Name of Person holding office at close of fiscal year Lewis. Wilks Beginning Date of Term End Sr. Vice President Augustine M. Crucci )ti

REPORT TO THE ARKANSAS PUBLIC SERVICE COMMISSION -- GROSS ASSESSABLE REVENUES Line Description Amount No. Total Arkansas Operating Revenues, including Interstate I Tolls I 2 I Less: Interstate Revenues Excluded $ 48,986? I I $ TOTAL GROSS ASSESSABLE REVENUES LOCAL EXCHANGE SERVICE STATISTICS ACCESS LINE% ~~ SYSTEM ARKANSAS Residence Business ~ ~~ ~ ~~~ ~ TOTAL RES. & BUS. ACCESS LINES PBX Access Lines Coin or Credit Card Paystation Access Lines Company Official Access Lines (Numbers) TOTAL ACCESS LINES 4.I LEC - 7

REPORT TO THE ARKANSAS PUBLIC SERVICE COMMISSION. Prefix Exchange Name EXCHANGE STATISTICS - ARKANSAS YEAR-END TROUBLE INDEX PROVISIC Beginning of Year co OSP NONE Lines Terminal Equi] ' Use Equil Use COE LINE AND TERMINAL (NUMBERS) ling AND USAGE End of Year Lines EquiI Ir Use Terminal Equip * Use NOT APPLICABLE Use - Usage LEC-8

STATEMENT OF ACCURACY I do hereby state that the amounts contained in this report are true and accurate, schedules have been cross referenced by use of the attached check list, and that the accuracy of al totals has been verified by me or under my supervision. Should I or anyone under my supemision become aware of any error in or omission from this report, I will take steps to no@ the Arkansas Public Service Commission of such error or omission and provide corrected schedules as soon as possible. 7 President/General Manager

COMPANY NAME dbp OFFICLAL MAILING ADDRESS US WEST Interprise America, Inc. 425 North Fairfax Drive, 13th Floor Arlington, VA 2223 Facsimile Number 7n 1-1 6 1-4 4 4 PERSON TO CONTACT Legal Data Proc~ssing Same as above I Please list the number of utility employees located in Arkansas