- The Washington Times - Tuesday, November 12, 2002

ASSOCIATED PRESS
Digex Inc.'s board has formed a special committee to explore alternatives for the company, including a sale.
The committee, which is made up of independent directors, has hired Lane, Berry & Co. as its investment bank, Digex said yesterday in a statement.
Digex provides managed Web- and application-hosting services.
More than a year ago, WorldCom Inc. bought a controlling stake in Digex and controls 94 percent of Digex's voting rights.
In August, Digex said there was substantial doubt about the company's ability to continue as a going concern over the next 12 months because of uncertainty that WorldCom could continue to fund Digex. Digex also projected continued significant losses and operating cash-flow deficits.
"We fully support the Digex board and the decision it has announced," said John Dubel, chief financial officer for WorldCom. "As the company's largest shareholder, we are committed to its continued growth and development."
A Digex spokeswoman said the company has three independent directors, with a total of eight board members. One seat is still open, she said.
The three independent directors were named in September, the spokeswoman said.
Yesterday shares of Digex rose 9 cents, to 35 cents, on Nasdaq volume of 244,750 shares.


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