THE WHITE HOUSE
Office of the Press Secretary (South Brunswick, New Jersey) ________________________________________________________________________ For Immediate Release August 23, 2000 STATEMENT BY THE PRESS SECRETARY President Clinton has decided against intervening in the proposed
acquisition of Verio, Inc. (Verio), an Englewood, Colorado Internet Service Provider (ISP), by NTT Communications Corporation, a wholly-owned subsidiary of Nippon Telegraph and Telephone Corporation (NTT). NTT is a Japanese corporation, majority owned and controlled by the Government of Japan.
The President based his decision on the results of the investigation of this transaction by the Committee on Foreign Investment in the United States (CFIUS), an 11-agency group chaired by Treasury Secretary Lawrence Summers. CFIUS conducted a thorough investigation of various national security issues related to the transaction. As a result of the investigation and negotiations with NTT Communications and Verio, any national security issues that may have been presented by this transaction have been resolved.
The Verio/NTT investigation was the first one involving the foreign acquisition of a U.S. ISP conducted under the Exon-Florio provision of the Defense Production Act of 1950. This provision, which became law in 1988, authorizes the President to investigate and, if necessary, to suspend or prohibit a proposed foreign acquisition of a U.S. company engaged in U.S. interstate commerce. The provision provides certain criteria the President must meet to suspend or prohibit a transaction. He must find: