VZ Buys SureWest Assets 651389

ROSEVILLE, Calif. -- Leading independent communications holding company SureWest Communications (Nasdaq: SURW) announced today that it has entered into a definitive agreement to sell the operating assets of its Wireless business to Verizon Wireless.

Under the agreement, Verizon Wireless will acquire the spectrum licenses and operating assets of SureWest Wireless, excluding SureWest’s more than 50-owned communication towers, for an aggregate cash purchase price of $69.0 million. Completion of the transaction is not subject to financing. As of the third quarter 2007, SureWest served over 50,000 wireless subscribers and its spectrum licenses covered a population of 3.8 million in the greater Sacramento area. The transaction, which is expected to close in the second quarter 2008, is subject to customary closing conditions and regulatory approvals, including approval by the Federal Communications Commission and the expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. The company expects to use the net proceeds from the transaction to repay indebtedness to be incurred in connection with its previously announced acquisition of Everest Broadband, Inc.

Steve Oldham, SureWest's president and chief executive officer, said, “Over the past two years, we have made great strides in transforming SureWest into a full-service integrated communications company focused on offering advanced telephone, Internet and television services over a superior IP-based fiber-to-the-home broadband network that provides the most outstanding customer experience possible.

“The sale of the Wireless assets is another important step in this transformation and will enhance our financial flexibility in supporting the extension of our triple-play offerings to a broader service area,” Oldham added. “We believe our customers will respond positively to being transitioned to such a respected national provider.”

SureWest Communications (Nasdaq: SURW)