Corridor Communications Corp. Closes Strategic Acquisition of 100% of Eagle West Communications Inc.
09 September 2004 - 1:05AM
PR Newswire (US)
Corridor Communications Corp. Closes Strategic Acquisition of 100%
of Eagle West Communications Inc. Corridor's Expansion into Cable
Television ownership is another cornerstone for its wired and
wireless broadband services deployment. Launching the company's
wireless model into Eagle West's 7000+ customers in 27 franchise
Cable television systems will provide a captive customer base for
the marketing of broadband services. SALEM, Ore., Sept. 8
/PRNewswire-FirstCall/ -- Corridor Communications Corp. (OTC:CORR)
(BULLETIN BOARD: CORR) completes its acquisition of a 100% of Eagle
West Communications Inc. On August 25th 2004, Corridor closed an
Asset Purchase Agreement with Eagle West Communications, Inc.,
whereby the Company acquired all of the assets of Eagle West for a
purchase price of $1,700,000. The transaction was funded by
utilizing cash generated from the sale of the Company's preferred
stock in connection with a private placement recently finalized by
the Company. (For more information on the transaction, please refer
to the Company's 8K filed August 27, 2004) The assets purchased
from Eagle West consist of 27 cable television systems serving
communities in Arizona, Nevada and New Mexico. The Eagle West
System is a service that delivers multiple channels of television
programming to subscribers who pay a monthly fee for the services
they receive. With this acquisition, Corridor will overlay wireless
Internet service onto the Eagle West System. With over 45,000 homes
passed. The systems have an annual recurring revenue stream of $3.1
Million from its current subscriber base. Corridor will immediately
launch its Wireless HotZone system to complement the service in its
largest cable systems to enhance its offerings and will continue
deployment until all systems are complete with broadband wireless
internet. Corridor plans to market its high-speed Internet data
services to Eagle's existing customer base and will also look to
expand cable subscriber base by adding broadband services utilizing
Eagle's existing cable delivery infrastructure. "Both companies
have dedicated tremendous efforts in closing this transaction over
the last three months and now we can go to work providing broadband
service via Cable and Wireless HotZones. Along with the planned
upgrade on the Cable TV side we will overlay Wireless HotZone
Internet Service on all of the Eagle West systems. Once fully
deployed our Wireless Network could provide service to over 500,000
homes and businesses. We see only an upside in these new assets,
with its current penetration of less than 20% we know we can bring
those numbers up to an industry average, which is close to 50%.
This acquisition will launch Corridor into new markets which in
most cases high-speed broadband service have not been available,"
said J. Michael Heil, Chief Executive Officer of the Company. Scott
Mac Caughern, Chairman of Corridor Communications Corp. stated,
"This acquisition is another major step in enhancing our overall
strategic goals. By adding the Eagle West's cable television
customer base and revenue along with future bundled services of
High-Speed Internet Access, we achieve a more stable revenue base
then our Wi-Fi only competitors. We have a spectacular business
plan, which we are methodically implementing each day. The Eagle
West asset not only give us the potential of new subscribers on the
broadband side, but also brings a steady and predictable revenue
stream on the cable side right to the bottom line. When we include
our new asset valuation and its current and future income potential
I can say that we are right on target and I am very pleased." 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., . DATASOURCE: Corridor Communications Corp.
CONTACT: Scott Mac Caughern of Corridor Communications Corp.,
+1-949-635-0647 or Web site: http://www.corridorcommunications.com/
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