SOURCE: iPass

iPass

September 08, 2014 16:15 ET

iPass to Explore Strategic Alternatives

REDWOOD SHORES, CA--(Marketwired - Sep 8, 2014) - iPass Inc. (NASDAQ: IPAS), the leading provider of Wi-Fi connectivity services to enterprises, telecommunications carriers, service providers and device manufacturers, today announced that the iPass Board of Directors has initiated a process to explore strategic alternatives that may enhance stockholder value.

"Our Open Mobile business generated last twelve month revenues of $53.5 million (as of June 30, 2014), with second quarter 2014 revenues of $14.4 million," said Evan Kaplan, President and Chief Executive Officer of iPass. "We've experienced 13 consecutive quarters of revenue growth in our Open Mobile business while growing Wi-Fi network users at 43% this past year alone. Our Wi-Fi network now has over 13 million hotspots. We are in a good position to play a significant strategic role in the evolution of our industry. In addition, over the course of the past year, we narrowed our focus and delivered strong results for our shareholders with the recent sale of our Unity Managed Network Services business. Given the progress of our Open Mobile business and the interest received during the Unity sale process, we believe that now is the right time to explore strategic alternatives to help maximize shareholder value."

As part of this process, iPass' Board has retained Blackstone Advisory Partners L.P. and Cooley LLP. There can be no assurance that this process will result in any transaction. iPass does not currently intend to disclose further developments with respect to this process, unless and until its Board of Directors approves a specific transaction or otherwise concludes the review of strategic alternatives.

iPass also announced that its business outlook, as discussed in the second quarter financial results press release and conference call on August 11, 2014, remains unaltered as a result of the initiation of the process to explore strategic alternatives.

About iPass Inc.

iPass enables business travelers to stay connected by providing them with cost-effective and convenient global Wi-Fi access across smartphones, tablets and laptops. Founded in 1996, iPass (NASDAQ: IPAS) is the world's largest Wi-Fi network, covering over 120 countries and territories and selling to over 700 large corporations, telecom service providers and other strategic partners around the world. Through its cloud-based delivery model, iPass connects business travelers to over 13 million Wi-Fi hotspots in airports, airplanes, hotels and public areas. With the growing need for fast, high bandwidth connectivity, iPass lets business travelers stay close to what matters most while on the road including access to video, unified communications, web conferencing and other cloud based apps.

Cautionary Information About Forward-Looking Statements
The statements in this press release regarding iPass' exploration of strategic alternatives, its belief that a strategic alternative may enhance stockholder value, and that its business outlook, as discussed in the second quarter financial results press release and conference call on August 11, 2014, remains unaltered as a result of the initiation of the process to explore strategic alternatives, are forward-looking statements. Actual results may differ materially from the expectations contained in these statements due to a number of risk and uncertainties, including the following: the risks and uncertainties of any strategic alternatives, including whether any strategic alternative will be identified or, if identified, whether it will be pursued or consummated; the risk that a strategic alternative will not enhance value as expected by iPass; the risk that the "End of Life" of iPass' legacy Mobile Office product may negatively impact customer retention and mobility revenues more than iPass expects; the risk that the Open Mobile platform and Open Mobile Exchange will not continue to achieve the market acceptance iPass expects; the risk of material reductions in iPass customers' existing minimum commitments more than iPass currently expects; the risk that iPass does not accurately predict usage for its Enterprise Flat Rate price plan which could result in iPass expenses exceeding revenues for these plans; the risk that iPass customers do not widely deploy iPass Open Mobile on smartphones, tablets and other mobile handheld devices at the rate iPass expects; the risk that demand for Mobility Services does not grow as iPass expects; the risk that strong competition in the market for Mobility Services could reduce demand for iPass' services; and the risk that a meaningful portion of iPass business is international, which subjects iPass to additional risks such as currency fluctuations. Detailed information about these and other risk factors that could potentially affect iPass' business, financial condition and results of operations are included in iPass' Quarterly Report on Form 10-Q filed with the SEC on August 11, 2014, and available at the SEC's website at www.sec.gov and the Company's website at http://investor.ipass.com. iPass undertakes no responsibility to update the information in this press release if any forward-looking statement later turns out to be an inaccurate prediction of the actual results.

NOTE: iPass® is a registered trademark of iPass Inc. Open Mobile, OME, Open Mobile Express, Open Mobile Exchange and OMX are trademarks of iPass Inc. Wi-Fi® is a registered trademark of the Wi-Fi Alliance. Other company names, logos and product or service names mentioned herein are the trademarks owned by their respective owners.

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