One Communications to evaluate ‘strategic alternatives’

SEPTEMBER 9, 2010 -- One Communications, one of the largest privately held, multi-regional integrated telecommunications services providers in the United States, says it has retained Blackstone Advisory Services L.P. to serve as its advisor as it explores potential “strategic alternatives” with respect to the company. The exploration, which One Communications says could include one or a series of merger and acquisition transactions, is expected to begin in mid-September.

In July, One Communications announced the sale of its FiberNet business to NTELOS (see "NTELOS Holdings Corp. to acquire FiberNet business from One Communications Corp."), and on August 26, Fibertech, in which One Communications has a minority interest, announced its pending sale (see "Court Square Capital Partners to acquire Fibertech Networks"). Both transactions are expected to close in the fourth quarter of 2010, pending customary approvals. The proceeds from the two transactions will be used to reduce debt.

“The process surrounding these transactions further solidified our belief that strategic consolidation is important in our business. The market expressed strong interest in our extensive network assets, stable on-net customer base, and positive cash flow and we believe that continued transaction activity is an attractive option with a number of qualified partners,” stated Howard Janzen, CEO of the company. “As we explore our options, we remain committed to delivering exceptional customer service to our large base of customers and to continuing to win new business in our targeted markets across the Northeast, Mid-Atlantic, and Upper Midwest.”

Kenneth Peterson, Jr., chairman of the board and CEO, chairman and founder of Columbia Ventures Corp., which owns approximately 50 percent of One Communications, added, “Recent M&A activity in our sector underscores the opportunity for continued consolidation and value creation. The company now has the flexibility to pursue the best strategic alternatives for its stakeholders, including customers and employees.”

Qualified parties interested in discussing strategic alternatives regarding One Communications should contact Blackstone Advisory Services L.P.

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