Usurf Restructures

Usurf America implements major restructuring plan

April 21, 2005

3 Min Read

DENVER -- Usurf America, Inc. (OTC Bulletin Board: USUR), a leading provider of voice, video and high-speed broadband communications services, announced today that the company has implemented a strategic, company-wide restructuring designed to enable Usurf to better respond to strategic market opportunities, to increase growth of revenue and profits, and to better serve its retail customers and business partners.

Specific components of the restructure include the elimination of previously unprofitable business segments, increased manpower and investment in broadband service deployment, and the creation of a new operating division, Cardinal Broadband, to consolidate Usurf's existing service provisioning operations and to expand into new markets. Cardinal Broadband will be headed by Dan Ryan, formerly VP of operations for Charter Communications Western U.S. business and a recent Usurf strategic management hire.

"Usurf is clearly in the middle of a major business transformation," said Dave Weisman, CEO and chairman of Usurf. "We have identified and fortified those business operations where we enjoy a competitive advantage and have expanded their charter and our internal investment. We also identified areas where we were not successful and have curtailed those activities."

All existing Usurf service provisioning divisions, including Usurf TV, Usurf Communications, and Usurf Development have been merged into the new Cardinal Broadband operating division. In addition, the company has expanded service operations to include providing comprehensive outsourced telecommunications design, implementation, and operation services to key developer partners throughout the United States.

Current customers receiving voice, video, and data services from Usurf are being notified of the creation of the new operating company, and the company expects a seamless transition. Cardinal Broadband's mission is to provide high-quality, cost-effective Bundled Digital Services to clustered communities nationwide both as a major developer and in partnership with key developers.

Under the new organization, Usurf will be segmented into three main operating components: Sovereign Companies, a leading residential and commercial developer, the Get-A-Phone telephony service provisioning entity consisting of almost 20,000 customers, and Cardinal Broadband. Each division will be tightly coupled with their counterparts and will report to Ed Garneau, who will serve as Usurf's chief operating officer.

"We chose to streamline the operations of our individual operating entities in order to maximize our productivity," said Garneau. "When we approach a new project, we will divide our activities into three phases:

  • * Phase I -- Initial design planning, budgeting, forecasting and service infrastructure deployment. During this phase each entity will work closely together to build a network that is cost-effective, dimensioned correctly for the community, and powerful enough to grow as the community expands and as new technologies emerge.

    * Phase II -- Service selection and customer acquisition. During this phase the service line-up is selected and the appropriate technologies and back office management systems are deployed. In addition, Cardinal will work closely with the developer, homeowners association, municipality, and other key partners to ensure that penetration is maximized and that homeowners are exposed early on to available services and attractive service bundles.

    * Phase III -- Service Operation. This phase deploys subscriber services into the clustered community and continues to deliver long- term return on investment to Cardinal Broadband, as well as to the developer/municipal partner.

"Each Usurf division is intimately involved either with infrastructure build out, service and technology selection, customer acquisition, and providing high-quality voice, video, and data.

"As a result of the reorganization, the company has realized a number of cost-reduction benefits due to elimination of redundant personnel, systems, and operating overhead. A key result has been that the company has achieved cash-flow positive status and a platform to grow revenue and profits. Perhaps most importantly the company is now in a better position to deliver customer satisfaction and be more responsive to customer demand."

Usurf America Inc.

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