HSAC High Speed Access Corp. CEO Daniel J. O'Brien Provides Additional Comments
Concerning Recent Company Developments
LITTLETON, Colo., Oct. 1 /PRNewswire/ --
High Speed Access Corp. (Nasdaq: HSAC), President & CEO Daniel J. O'Brien
provides the following comments concerning recent company developments:
"High Speed Access Corp. today announced the signing of a definitive
agreement by which Charter has agreed to purchase substantially all of the
assets used by HSA to serve Charter's high-speed data customers. The purchase
price for these assets is $81.1 million in cash, subject to certain closing
adjustments and indemnity reserves, and the assumption of certain liabilities
related to the purchased assets. In addition, all 75,000 shares of our
Series D Senior Convertible Preferred Stock currently held by Charter and its
affiliate, Vulcan Ventures Incorporated, will be canceled. All warrants
currently held by Charter to purchase shares of our common stock will also be
canceled. Lehman Brothers, a leading investment banking firm, and the law
firm of Weil, Gotshal & Manges LLP have been advising the board.
"The board of directors participated in the negotiations and carefully
reviewed the terms of this agreement with Charter. Based upon the advice of
our advisors, our assessment of our market value and current market
conditions, the board has determined that the transaction is fair to and in
the best interests of the company.
"We continue to reduce our operating costs. We have completed our exit
from one-way cable TV markets, and are completing our exit from all two-way
cable system agreements except for those with Charter. We have scaled back
the operations of Digital Chainsaw, and are actively pursuing its sale. We
have also ceased our entry into the DSL market.
"At the present time, with the exception of the continuing Charter
operations, the wind-down of our non-Charter turnkey and web hosting
businesses, the only assets we are operating are those directly related to the
provision of international cable-based Internet services to Kabel Nordrhein-
Westfalen GmbH. & Co. KG, in Germany. In February of this year we signed the
three-year master services agreement with Kabel NRW, which is managed by
Callahan Associates International. We are paid on a fee-for-service basis and
believe that this business will be profitable in the current year.
"Additionally, we have reduced our workforce to include only those
employees that Charter has agreed to hire on the closing date, those necessary
to operate any assets to be operated as a going concern after the closing and
those necessary to effect the orderly wind-down of our remaining assets.
"We have not yet made a final determination as to the net effect of this
transaction on our ongoing operations and obligations. Our cash requirements
will vary based upon certain factors, including the liabilities we incur
before and after the closing, the length of time to the closing and our
ability to manage the orderly wind-down of our remaining assets."
About High Speed Access Corp.: High Speed Access Corp. (Nasdaq: HSAC), a
Wired World Company(TM), is a provider of broadband Internet access and
related communications services to residential and commercial customers
nationwide, primarily through cable modem technology. HSA's core service
offering currently consists of cable modem-based Internet access, which HSA
offers at several speeds and prices to residential end users through
partnerships with cable multiple system operators.
Cautionary Note Regarding Forward-Looking Statements about HSA: This
press release contains statements about future events and expectations that
are "forward-looking statements." Any statement in this press release that is
not a statement of historical fact is a forward-looking statement that
involves known and unknown risks, uncertainties and other factors which may
cause the company's actual results, performance or achievements to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Specific factors
that might cause such a difference include, but are not limited to: the
company's uncertain ability to control expenses, particularly in light of the
current economic environment and the company's limited capital; the company's
history of losses and anticipation of future losses, the potential
fluctuations in the company's operating results; disruptions to operations and
accounting charges that could occur if the company decided to pursue an
acquisition or liquidation; rapid technological change and evolving industry
standards in the markets for the company's services; the magnitude of any
adjustments or reductions to the proceeds received by the company in
connection with the sale of certain of its assets to Charter; the satisfaction
of the conditions to, and the timing of, the consummation of the sale of
certain of its assets to Charter; whether the company consummates the sale of
claim of certain of its assets to Charter; whether the company consummates an
extraordinary transaction; and those risks and uncertainties discussed in
filings made by the company with the Securities and Exchange Commission. The
forward-looking statements in this press release are as of the date hereof and
the company assumes no obligation to update these forward-looking statements.
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SOURCE High Speed Access Corp.
-0- 10/01/2001
/CONTACT: Katina Vlahadamis Arnold, Dir. of Media Relations,
+1-720-922-2823, kvlahadamis@hsacorp.net, or Ron Dart, Dir. of Investor
Relations, +1-720-922-2844, rdart@hsacorp.net, both of High Speed Access
Corp./
/Photo: NewsCom: newscom.com
AP Archive: photoarchive.ap.org
PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840/
(HSAC)
CO: High Speed Access Corp.; Charter; Vulcan Ventures Incorporated; Kabel
Nordrhein-Westfalen GmbH. & Co. KG; Kabel NRW; Callahan Associates
International
ST: Colorado, Germany
IN: CPR MLM
SU: TNM PER
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