Corridor Communications Corporation Signs Letter of Intent to Acquire the Cable Television System Assets of CableVision Inc.
June 14 2004 - 7:30AM
PR Newswire (US)
Corridor Communications Corporation Signs Letter of Intent to
Acquire the Cable Television System Assets of CableVision Inc.
Company Moves Forward to Provide Wireless Broadband Service in
High-Density MDU Markets in Texas Through Its Newest Cable
Acquisition Target MOUNTAIN VIEW, Calif., June 14
/PRNewswire-FirstCall/ -- Corridor Communications Corporation
(OTC:CORR) (BULLETIN BOARD: CORR) has entered into a LOI to acquire
CableVision Inc. Cable TV assets in a deal for cash and stock.
CableVision owns cable television systems serving multiple
apartment communities in Texas and Michigan, with over 7,000 homes
passed. The systems have an annual recurring revenue stream of over
$1.1 Million from its current subscriber base. The company plans to
provide both a wired and wireless option in the apartment complexes
that will blanket not only the current service area but will have
an additional service area of a 15 mile radius at each of the
locations. To enhance its offerings to users, Corridor
Communications will immediately deploy Wireless HotZone service in
these under-served cable markets. Corridor plans to market its
high-speed wireless Internet services in high density first tier
markets by building networks of hotspots to provide ubiquitous
service in an un-tethered environment. "This opportunity is
strategic for us, we see ourselves being a major competitor in
areas where we can find a lot of savvy users in high-end,
high-density communities as well as the 2nd and 3rd tier
communities. We have already implemented this type of service in
our Salem Market by installing hybrid wireless systems in apartment
complexes where no other Broadband options are available. We know
that by adding High-Speed Wireless Broadband Services we create
solid revenue and happier customers," said J. Michael Heil, Chief
Executive Officer of the Company. Scott Mac Caughern, Chairman of
Corridor Communications Corporation stated, "The Cable Vision asset
acquisition along with last weeks announcement to acquire 7,000
subscribers from Coast Communications confirms our business
strategy; as we now have back to back Cable TV deals that will
bring to us over 10,000 paying subscribers and over 50,000 homes
passed in a nearly no competition environment. Having a legacy
asset with a solid recurring revenue foundation will certainly help
us continue to execute our 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 Communications Corporation CONTACT: Scott Mac
Caughern of Corridor Communications Corp., +1-650-961-5707,
smac@speedpalcom Web site: http://www.corridorcommunications.com/
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