To: Michail Shadkin who wrote (2419 ) 6/20/2001 7:51:26 AM From: Bocor Read Replies (1) | Respond to of 6873 Gues all those recent 144's meant something? PRESS RELEASE: Choice One Communications On S&P Watch-Neg 19 Jun 17:06 Following is a press release from Standard & Poor's: NEW YORK (Standard & Poor's CreditWire) June 19, 2001--Standard & Poor's today placed its single-'B' corporate credit and senior secured bank loan ratings on Choice One Communications Inc. on CreditWatch with negative implications. The CreditWatch placement is based on concerns over the company's heightened liquidity risk over the next six to 18 months. Choice One had about $214 million in cash and available bank borrowings at the end of the first quarter of 2001. Standard & Poor's believes that, with weak economic conditions, ongoing operating losses, capital expenditure needs, and strong competition from regional Bell operating companies, Choice One's current liquidity provides little safety against execution and market-related risks. Although it has filed a universal shelf registration with the SEC to raise additional funds, the company may find it challenging to raise more capital given weak investor sentiment towards competitive local exchange carriers (CLECs). Choice One, a facilities-based CLEC, provides local, long distance, broadband data and Internet services, and Web hosting to small and midsize businesses in Tier II and Tier III metropolitan cities in 11 states in the Northeast and Midwest. The company primarily uses a smart-build approach, which involves installing its own switch and leasing local fiber capacity from regional Bell operating companies in many of its markets. This approach has enabled Choice One to limit capital investments and be first to market in some cases. By offering competitively priced bundled services and tying the majority of its customers to three to five year contracts, the company has been able to limit monthly churn to less than 1%. (END) DOW JONES NEWS 06-19-01 05:06 PM