January 29, 2005
Mimi Hull, President
AUSWR Board Members and General members
Here is the latest information concerning our effort to learn more about the issue of whether the Qwest Health Care Plan was heavily invested in Qwest stock, a concern that arose due to statements appearing in an official report that had been filed by Qwest on October 15, 2002, for year ending December 31, 2001.


January 29, 2005
Erik P. Ammidown, Director of Employee Benefits
1801 California Street, Suite 900
Denver, CO  80202
Tele:  303-992-6154
Fax:   303-992-3379
erik.ammidown@qwest.com (Erik Ammidown)
Re:    Qwest Health Care Plan / Request for Disclosures
Thank you for your January 26, 2005, letter partially responding to my January 21, 2005, email and letter again reminding you that a full response is sought for the requests for information and questions set forth in my November 9, 2004, letter to you wherein concerns are expressed about whether the Qwest Health Care Plan has been heavily invested in Qwest stock, i.e., “employer securities.”

In your January 26 letter faxed to me yesterday, you state any assertion that the Qwest Health Plan has been “heavily invested” in Qwest common stock is incorrect.  You refer to the 2003 Qwest Health Care Plan Financial Statements which shows the Plans holds assets in a “Partnership” containing only $424,000 worth of Qwest stock.  Your letter is attached hereto.

But, your January 26 letter avoids giving any explanation about a report filed by Qwest which report gives contrary information and which report is the basis for the underlying concern about whether the Qwest Health Care Plan has been heavily invested in employer securities.   The Form 5500 Report for year ending December 31, 2001, a report apparently signed by Erik Ammidown on October 15, 2002, contains a Schedule H with entries on page two showing the Health Plan Trust had a total value of $1,911,871,039 with $689,211,000 in employer securities, i.e., Qwest common stock.  That is the same amount of  the fair value of “net investments” shown in Note 7 concerning the Health Plan Trust’s interest in Qwest Benefit Plans Investment Partnership.  The Form 5500 report was approved by “independent” auditors Arthur Andersen, and retirees have good reason to believe the official report is true and accurate.  After all, when you signed the 2001 Form 5500 report, you declared that you had “examined this return/report, including accompanying schedules, statements and attachments, as well as the electronic version of this return/report if it is being filed electronically, and to the best of my knowledge and belief, it is true, correct and complete.”   Thus, you must understand the underlying basis for the concern about whether the Qwest Health Care Plan has been “heavily invested” in employer securities, i.e., Qwest stock and the subsequent stream of inquiries to check on this subject matter.

Please advise whether the official report filed for year 2001, a report you declared on October 14, 2002, to be accurate is incorrect.    Did the Heath Plan Trust have $689,211,000 in “employer securities” as of the end of December 31, 2001?  For your convenience a copy of that report containing your signature is attached hereto.
Attachment:    (Erik Ammidown January 26, 2005 letter and Qwest Health Care Plan report filed for year ending 2001 -  9 pages)

c: Association of U S WEST Retirees