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News Releases
New Edge Networks Buys Commercial Customers and Assets from Bankrupt AtHome; Deal Averts Service Shutdown for Affected Customers
VANCOUVER, Wash. – (Feb. 15, 2002) – New Edge Networks, a national enhanced data and broadband communications service provider, today announced that a federal Bankruptcy Court judge has approved the company’s purchase of business customers and certain broadband access assets of AtWork, the commercial access division of bankrupt AtHome Corp., (OTC BB: ATHMQ.OB).
Judge Thomas E. Carlson of the U. S. Bankruptcy Court for the Northern District of California in San Francisco approved the purchase, which averts a service shutdown for most AtWork customers. Under terms of the purchase agreement, New Edge Networks will assume most existing AtWork customer contracts and ownership of certain customer and network equipment necessary for continuing uninterrupted high-speed Internet access.
New Edge Networks paid $1.5 million to acquire all affected AtWork customers, related premises equipment, and network routers that are installed in 33 Internet hub locations in major cities around the country. The purchase represents about $18 million in new annual revenue for New Edge Networks.
“This transaction is a natural extension of our existing broadband business,” said Dan Moffat, president and CEO of New Edge Networks. “Providing excellent business class broadband service is something we do everyday and we are proud of the high marks we consistently get from our customers in public forums. In the past year, we’ve become operationally efficient at migrating customers whose broadband carriers unfortunately went out of business.”
“This deal involved many parties and required unusual tenacity and a will to win – traits essential to survive and prosper in today’s economy and telecom downturn,” Moffat said. “We are very pleased we were able to acquire these business assets and the value they represent. Now we have an opportunity to demonstrate our commitment to customer service as we immediately begin our efforts to seamlessly migrate AtWork customers onto our TransEdge service.”
This purchase affects about 1,300 AtWork business customers in 26 metropolitan areas in 21 states. New Edge Networks will honor current contract terms and prices. Affected AtWork customers will not be required to place new orders or purchase new equipment. New Edge Networks expects to contact all affected customers within two weeks to confirm transfer of services.
“We are pleased to be able to provide our customers continuing service with New Edge Networks while serving the interests of the estate – a true win-win-win,” said Hemant Vaidya, senior vice president and general manager of AtWork.
In addition to the new revenue stream, the transaction provides New Edge Networks enhanced Internet access capabilities and an expanded metropolitan footprint for frame relay and T-1 services.
About New Edge Networks
New Edge Networks owns and operates one of the largest multi-service data communications networks in the United States. With 600 multi-service switches, New Edge is able to deliver frame relay, ATM, and other advanced wide area network technologies to hundreds of markets nationwide. The company offers frame relay access and gateway products through agent programs and complementary carrier agreements with Regional Bell Operating Companies. In addition, New Edge provides DSL services in more than 360 small and midsize cities in 29 states. The company provides a wide variety of business class DSL solutions through Internet Service Providers and its own retail channel under the TransEdge brand. Total company revenue is almost equally split between WAN and DSL services. Top-tier private venture firms, global financial institutions and worldwide technology firms provide financial backing to New Edge Networks. The company’s Web site is www.newedgenetworks.com. Telephone: 1-360-693-9009.
Contact:
Sal Cinquegrani
(360) 906-9723
ATTN: New Edge Networks news releases contain information that is accurate as of the date they are issued. Information contained in past news releases may become out of date and the company does not assume responsibility for updating information contained in past news releases.