Corridor Communications Corporation Signs Letter of Intent To Acquire the Cable Television System Assets of Coast Communications
June 07 2004 - 9:35AM
PR Newswire (US)
Corridor Communications Corporation Signs Letter of Intent To
Acquire the Cable Television System Assets of Coast Communications
Inc. Company Will Expand Broadband Wireless Data Services To Homes
and Businesses in Arizona and Nevada MOUNTAIN VIEW, Calif., June 7
/PRNewswire-FirstCall/ -- Corridor Communication Corporation
(OTC:CORR) (BULLETIN BOARD: CORR) has entered into a LOI to acquire
Coast Communications Inc. Cable TV assets in a deal for cash and
stock. Coast owns the rights to 25 cable television systems serving
communities in Arizona and Nevada, with over 40,000 homes passed.
The systems have an annual recurring revenue stream of $3.1 Million
from its current subscriber base. The companies have also agreed to
launch Corridors Wireless HotZone system to complement the service
in its largest cable systems immediately to enhance its offerings
to its users and will continue deployment until all systems are
complete with broadband wireless internet. Corridor plans to market
its high-speed Internet data services to Coast's existing customer
base. Corridor will also look to expand cable subscriber base by
adding broadband services utilizing Coast's existing cable delivery
infrastructure. "We see only an upside in this deal with Coast
Communication with its current penetration of only 20 percent. We
know that by adding High-Speed Broadband Services we can bring
those numbers up. This acquisition will Launch Corridor into new
markets that in most cases high-speed broadband service have not
been available. Given this fact we feel that both the existing
subscriber base and future subscribers will embrace the combined
services offered by the company," said J. Michael Heil, Chief
Executive Officer of the Company. Scott Mac Caughern, Chairman of
Corridor Communications Corporation stated, "The Coast Cable asset
will enhance our core competencies in servicing our existing
customer base with bundled services of High-Speed Internet Access,
Cable Television Programming, and Voice Products. In addition, we
get the benefit of a company with zero debt and liabilities, a
solid recurring revenue foundation and an excellent infrastructure
that will further enable Corridor to execute on our strategic
growth plan." About Corridor Communications Headquartered in
Mountain View, California with Operations in Salem, Oregon,
Corridor Communications, Inc. is an integrated wireless Internet
service provider (WISP) offering high-speed Internet and data
services, to residents and businesses. The Company plans to
implement a growth-through- acquisition strategy by targeting small
to mid size Dial Up Internet Service Providers (ISP) in areas
underserved by current broadband options. The growth strategy will
also focus on creating partnerships with existing hot spot
management companies while building company owned hotspots to
create ubiquitous coverage or "Hot Zones" that encompass entire
cities. Corridor's IP-Based technology supports all hardware
meeting Wi-Fi 802.11(x) standards operating in an unlicensed spread
spectrums (2.4 GHz and 5.7 GHz), and can be deployed far less
expensively than comparable copper and cable technologies. The
company also plans to leverage its network build out for other
services that may include voice and video. For more information
about Corridor Communications, please visit the Company's web site
at http://www.corridorcommunications.com/ "Safe Harbor" statement
under the Private Securities Litigation Reform Act of 1995: This
release contains forward-looking statements that are subject to
risks and uncertainties, including, but not limited to, the impact
of competitive products and pricing, product demand and market
acceptance, new product development, reliance on key strategic
alliances, availability of raw materials, the regulatory
environment, fluctuations in operating results and other risks
detailed from time to time in the company's filings with the
Securities and Exchange Commission. Our forward-looking statements
are based on currently available information which management has
assessed but which is dynamic and subject to rapid and even abrupt
change due to risks and uncertainties that affect our business,
including the unpredictability of future revenues and limited
visibility into future demand on which to base our forecasts; the
current uncertainty in our marketplace which may impact expected
demand, customer selection criteria and sales cycle; our ability to
execute on product deliverables and major customer contracts,
slower economic growth generally, slower adoption of broadband
technology, or cutbacks in information technology spending; and
factors beyond our control such as power outages or work stoppages
at key customers. Contact: Scott Mac Caughern of Corridor
Communications Corp., +1-650-961-5707, or smac@speedpalcom.
DATASOURCE: Corridor Communication Corporation CONTACT: Scott Mac
Caughern of Corridor Communications Corp., +1-650-961-5707, or
smac@speedpalcom Web site: http://www.corridorcommunications.com/
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