Directors Include Former SEC Commissioner Philip R. Lochner, Jr. and
Susan Ness, Communications Policy Expert and Former FCC Commissioner
GREENWOOD VILLAGE, Colo., May 13 /PRNewswire-FirstCall/ -- Adelphia
Communications Corporation (OTC: ADELQ) announced today that its Board of
Directors has elected two additional directors, Philip R. Lochner, Jr. and
Susan Ness.
The announcement was made today by William T. Schleyer, the Company's
Chairman and Chief Executive Officer. Pursuant to an order of the bankruptcy
court overseeing Adelphia's Chapter 11 case, Adelphia is required to provide
certain constituencies with five business days' advance written notice of such
elections. As a result, the Company expects that the appointments will become
effective on May 21, 2003.
Philip R. Lochner, Jr. is a former Senior Vice President and Chief
Administrative Officer of Time Warner, Inc. He also served as a commissioner
of the United States Securities and Exchange Commission from 1990 to 1991.
Susan Ness served as a commissioner of the Federal Communications
Commission from 1994 to 2001. She currently is a consultant to media and
communications companies and lectures frequently on communications policy.
In announcing the appointments, Bill Schleyer said, "Our Company's
management team will benefit extensively from the breadth of experience of
both Phil Lochner and Susan Ness. These elections are a continuation of our
promise to expand the Board's corporate governance, legal and policy
expertise."
Mr. Schleyer added, "Strengthening our Board of Directors with the
addition of Phil and Susan represents another significant step in our effort
to rebuild Adelphia's reputation and return the Company to financial health
for the benefit of all of our stakeholders."
About Philip R. Lochner, Jr.
Philip R. Lochner, Jr., is a distinguished attorney with extensive
experience in the communications and entertainment industries. He served as
Senior Vice President and Chief Administrative Officer of Time Warner, Inc.
and spent twelve years at Time, Inc., where he held various legal and
administrative positions, including Vice President, General Counsel and
Secretary. In addition, Mr. Lochner served as commissioner of the United
States Securities and Exchange Commission from 1990 to 1991.
Mr. Lochner also served as an attorney with Cravath, Swaine & Moore and an
associate dean and assistant professor of law at The State University of New
York Law School.
He has served on several boards and has held positions on the Board of
Advisors for the Republic New York Corporation and the National Association of
Securities Dealers. He has also served on the Task Force on Conceptual
Framework for Accounting and the Accounting Firm Organization and Structure
Task Force of the Independence Standards Board.
Mr. Lochner earned a Bachelor of Arts degree from Yale College in 1964, a
Bachelor of Law degree from Yale Law School in 1967 and a Ph.D. from Stanford
University in 1971.
About Susan Ness
Susan Ness was a member of the Federal Communications Commission for seven
years. In addition to chairing the Federal-State Joint Board of the FCC, she
was the FCC's senior representative to many international multilateral treaty
conferences and bilateral negotiations. She played a leading role on spectrum
policy issues, facilitating the deployment of new technologies.
Ms. Ness was Distinguished Visiting Professor of the Annenberg School for
Communications (University of Pennsylvania) and Director of Information and
Society at the Annenberg Public Policy Center during the 2001-2002 academic
year.
Before joining the FCC, Ms. Ness was Vice President and Group Head of a
corporate lending division of American Security Bank, specializing in the
communications industry. Previously, she was assistant counsel to the
Committee on Banking, Currency and Housing of the U.S. House of
Representatives from 1975 to 1976.
Ms. Ness serves on the board of directors of LCC International (Nasdaq).
She is a member of the District of Columbia Bar, the American Bar Association,
the Federal Communications Bar Association and Leadership Washington (Class of
'88). She has received numerous awards, including the International Radio and
Television Society Foundation Achievement Award, the Digital Television
Pioneer Award and the Annenberg School for Communication's Edward L. Palmer
Award.
Ms. Ness received her Bachelor of Arts degree from Douglass College in
1970, her Juris Doctor, cum laude, from Boston College Law School in 1974 and
her Master's in Business Administration from The Wharton School of The
University of Pennsylvania in 1983.
About Adelphia
Adelphia Communications Corporation is the fifth-largest cable television
company in the country. It serves 3,500 communities in 32 states and Puerto
Rico, and offers analog and digital cable services, high-speed Internet access
(Adelphia Power Link), and other advanced services.
Cautionary Statement Regarding Financial and Operating Data
As a result of actions taken by management of the Company during the time
it was controlled by the Rigas family: (a) the Company has not yet completed
its financial statements as of or for the years ended December 31, 2001 and
December 31, 2002, or received its independent public accountants' report
thereon or filed with the Securities and Exchange Commission (the
"Commission") its Annual Report on Form 10-K for the years ended December 31,
2001 and December 31, 2002; (b) the Company's former independent public
accountants, Deloitte & Touche LLP, suspended their auditing work on the
Company's financial statements as of and for the year ended December 31, 2001
and withdrew their audit report with respect to the year ended December 31,
2000; (c) the Company has not yet completed its financial statements as of and
for the three months ended March 31, 2003 or filed with the commission its
Quarterly Report on Form 10-Q for the quarter ended March 31, 2003; (d) the
Company has not yet completed its financial statements as of and for the three
months ended March 31, 2002, June 30, 2002 or September 30, 2002, or filed
with the Commission its Quarterly Report on Form 10-Q for the quarters ended
March 31, 2002, June 30, 2002 and September 30, 2002; and (e) the Company
expects to restate its financial statements for the years ended December 31,
1999 and 2000, and its interim financial statements for 2001 and possibly
other periods. Effective March 4, 2003, the Company hired a new Chief
Executive Officer and President and Chief Operating Officer. The new Chief
Executive Officer replaced the interim Chief Executive Officer who, along with
other members of the current management team, took control of the Company in
May 2002. Current management has retained new independent auditors and begun
the preparation of new financial statements for the periods in question. As a
result of certain actions of Rigas management that the Company has previously
disclosed, the Company is unable to predict at this time when such financial
statements will be completed. In addition, current management believes that
the public information provided by Rigas management on other matters of
interest to investors, such as the Company's rebuild percentage (the
percentage of the Company's cable television systems that the Company believes
have been upgraded to current standards), was unreliable. As a result, the
Company anticipates that it may have to supplement the financial and other
information contained in its filings with the Commission and that such
supplemental information may be material.
Cautionary Statement Regarding Forward-Looking Statements
This document includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended (the "Securities Act")
and Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). All statements regarding the Company's expected future
financial position, results of operations, cash flows, restructuring and
financing plans, business strategy, budgets, projected costs, capital
expenditures, competitive positions, growth opportunities, plans and
objectives of management for future operations and statements that include
words such as "anticipate," "if," "believe," "plan," "estimate," "expect,"
"intend," "may," "could," "should," "will," and other similar expressions are
forward-looking statements. Such forward-looking statements are inherently
uncertain, and readers must recognize that actual results may differ from the
Company's expectations. The Company does not undertake a duty to update such
forward-looking statements.
Actual future results and trends for the Company may differ materially
depending on a variety of factors discussed in the Company's filings with the
Commission, including its recently filed Current Reports on Form 8-K, the most
recently filed Quarterly Report on Form 10-Q, the Form 10-K for the year ended
December 31, 2000, and the most recent prospectus supplement filed under
Registration Statement No. 333-64224, under the section entitled "Risk
Factors" contained therein. Factors that may affect the plans or results of
the Company include, without limitation: (a) the Company's filing of a
petition for relief under Chapter 11 of the United States Bankruptcy Code; (b)
the results of litigation against the Company including the recently filed
civil complaint by the Commission and the potential for a criminal indictment
of the Company; (c) the effects of government regulations and the actions of
local cable franchise authorities; (d) the availability of debtor-in-
possession financing and surety bonds to support the Company's operations; (e)
the results of the Company's internal investigation and the matters described
above under "Cautionary Statement Regarding Financial and Operating Data"; (f)
actions of the Company's competitors; (g) the pricing and availability of
equipment, materials, inventories and programming; (h) product acceptance and
customer spending patterns; (i) the Company's ability to execute on its
business plans, to provide uninterrupted service to its customers and to
conduct, expand and upgrade its networks; (j) technological developments; (k)
matters relating to or in connection with the bankruptcy filing and
proceedings of Adelphia Business Solutions, Inc.; (l) changes in general
economic conditions and/or economic conditions in the markets in which the
Company may, from time to time, compete; (m) the movement of interest rates
and the resulting impact on the Company's interest obligations with respect to
its pre-petition bank debt; and (n) the delisting of Adelphia Communication
Corporation's common stock by Nasdaq. Many of such factors are beyond the
control of the Company and its management.
SOURCE Adelphia Communications Corporation
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Related links:
http://www.adelphiacom.com
CONTACT:
Eric Andrus of Adelphia Communications
Corporation, +1-877-496-6704
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