SOURCE: Centennial Communications

September 18, 2007 16:05 ET

Centennial Communications Completes Purchase of Islanet Communications; Company Also Signs Agreement to Buy Spectrum in Key Midwest Markets

WALL, NJ--(Marketwire - September 18, 2007) - Centennial Communications Corp. (NASDAQ: CYCL) ("Centennial") today announced that it completed the purchase of Islanet Communications ("Islanet"), a provider of data and voice communications to business and residential customers in Puerto Rico. The transaction is expected to be modestly accretive to Centennial's free cash flow within the first year after closing.

Islanet operates a facilities-based wireless network that primarily delivers data connectivity solutions to approximately 200 multi-location commercial customers in Puerto Rico. Islanet's service portfolio includes point of sale data, credit card transactions, Internet access and Voice over Internet Protocol (VoIP). Islanet also holds 2.5Ghz spectrum suitable for WiMAX technology on the island, which supports its recently launched residential wireless Internet service.

"We're pleased to expand our comprehensive set of bandwidth and networking solutions for commercial customers with our acquisition of Islanet Communications," said Michael J. Small, Centennial's chief executive officer. "This transaction immediately expands the addressable market for our broadband business by providing more efficient last-mile access to reach small and medium-sized business customers. We'll continue to evaluate an expanded deployment of WiMAX as the technology evolves."

The Company also announced that it has entered into a definitive agreement to purchase 1900 MHz (PCS) wireless spectrum from Highland Cellular Holding, Inc., covering an aggregate of approximately 400,000 population equivalents (POPs) in Lima and Findlay-Tiffin, Ohio. This targeted purchase is contiguous to Ft. Wayne, Indiana and improves the Company's Midwest footprint, supporting already strong momentum in its U.S. wireless retail business. The transaction is subject to customary closing conditions and is expected to close in the calendar fourth-quarter of 2007.

"This purchase reinforces our commitment to provide superior voice and data network performance for our growing subscriber base," said Michael J. Small, Centennial's chief executive officer. "The new territory is an attractive growth opportunity in its own right and enables us to better market our services to more of our existing footprint in neighboring Indiana."

ABOUT CENTENNIAL

Centennial Communications (NASDAQ: CYCL), based in Wall, NJ, is a leading provider of regional wireless and integrated communications services in the United States and Puerto Rico with over 1.1 million wireless subscribers and 419,500 access lines and equivalents. The U.S. business owns and operates wireless networks in the Midwest and Southeast covering parts of six states. Centennial's Puerto Rico business owns and operates wireless networks in Puerto Rico and the U.S. Virgin Islands and provides facilities-based integrated voice, data and Internet solutions. Welsh, Carson, Anderson & Stowe is a significant shareholder of Centennial. For more information regarding Centennial, please visit our websites http://www.centennialwireless.com/ and http://www.centennialpr.com/.

SAFE HARBOR PROVISION

Cautionary statement for purposes of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995: Information in this release that involves Centennial's expectations, beliefs, hopes, plans, projections, estimates, intentions or strategies regarding the future are forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include, but are not limited to: the effects of vigorous competition in our markets, which may make it difficult for us to attract and retain customers and to grow our customer base and revenue and which may increase churn, which could reduce our revenue and increase our costs; the fact that many of our competitors are larger than we are, have greater financial resources than we do, are less leveraged than we are, have more extensive coverage areas than we do, and may offer less expensive and more technologically advanced products and services than we do; changes and developments in technology, including our ability to upgrade our networks to remain competitive and our ability to anticipate and react to frequent and significant technological changes which may render certain technologies used by us obsolete; our substantial debt obligations, including restrictive covenants, which place limitations on how we conduct business; market prices for the products and services we offer may decline in the future; the effect of changes in the level of support provided to us by the Universal Service Fund; the effects of a decline in the market for our CDMA-based technology; the effects of consolidation in the telecommunications industry; general economic, business, political and social conditions in the areas in which we operate, including the effects of world events, terrorism, hurricanes, tornadoes, wind storms and other natural disasters; our access to the latest technology handsets in a timeframe and at a cost similar to our competitors; our ability to successfully deploy and deliver wireless data services to our customers, including next generation 3G and 4G technology; our ability to generate cash and the availability and cost of additional capital to fund our operations and our significant planned capital expenditures, including the need to refinance or amend existing indebtedness; our dependence on roaming agreements for a significant portion of our wireless revenue and the expected decline in roaming revenue over the long term; our dependence on roaming agreements for our ability to offer our wireless customers competitively priced regional and nationwide rate plans that include areas for which we do not own wireless licenses; our ability to attract and retain qualified personnel; the effects of governmental regulation of the telecommunications industry; our ability to acquire, and the cost of acquiring, additional spectrum in our markets to support growth and advanced technologies; the effects of network disruptions and system failures; our ability to manage, implement and monitor billing and operational support systems; the results of litigation filed or which may be filed against us, including litigation relating to wireless billing, using wireless telephones while operating an automobile or possible health effects of radio frequency transmission; the relative liquidity and corresponding volatility of our common stock and our ability to raise future equity capital: the influence on us by our significant stockholder and anti-takeover provisions and other risks referenced from time to time in the Company's filings with the Securities and Exchange Commission. All forward-looking statements included in this release are based upon information available to Centennial as of the date of the release, and we assume no obligation to update or revise any such forward-looking statements.

Contact Information

  • For investor and media inquiries please contact:
    Steve E. Kunszabo
    Executive Director, Investor Relations
    732-556-2220