ATLANTA, Sept. 21 /PRNewswire-FirstCall/ -- EarthLink, Inc. today confirmed the announcement by SK Telecom that the South Korean company will invest up to $270 million in Helio, their wireless voice and data services joint venture (http://www.helio.com/).
"We are very pleased that with SK Telecom's funding, Helio will be able to move forward with its innovative business plan without the need for further investment by EarthLink, while continuing to allow our company to have a substantial ownership interest in Helio's future," said Rolla P. Huff, EarthLink President and CEO. "We believe this is good news for EarthLink shareholders and is consistent with our statements over the past two months."
Helio ended August with 130,000 subscribers, and expects to end the year with between 200,000 and 250,000 subscribers and revenue of $140 - $170 million. Helio expects a full year net loss of $ (340) - $ (360) million.
Helio continues to carve out a unique space in the wireless market. Through the introduction of arguably the most complete messaging device on the market in Ocean, and the market's thinnest folder in Fin, over a dozen industry firsts in one year, and market-driving advanced 3G mobile services, Helio lets people stay in touch more than ever. Built for consumers who have mobile at the center of their lives, Helio continues to post growth and usage metrics of its core services far above industry averages in most areas.
EarthLink and SK Telecom are currently in discussions to amend their existing agreements to reflect the additional investment by SK Telecom and their future governance of Helio. The amendments are not yet completed and further details will not be released until the agreements are finalized.
About EarthLink
"EarthLink. We revolve around you(TM)." As the nation's next generation Internet service provider, Atlanta-based EarthLink has earned an award-winning reputation for outstanding customer service and its suite of online products and services. EarthLink offers what every user should expect from their Internet experience: high-quality connectivity, minimal online intrusions and customizable features. Whether it's dial-up, high-speed, voice, web hosting, wireless or "EarthLink Extras" like home networking or security, EarthLink connects people to the power and possibilities of the Internet. Learn more about EarthLink by calling (800) EARTHLINK or visiting EarthLink's Web site at http://www.earthlink.net/.
Cautionary Information Regarding Forward-Looking Statements
This press release includes "forward-looking" statements (rather than historical facts) that are subject to risks and uncertainties that could cause actual results to differ materially from those described. Although we believe that the expectations expressed in these forward-looking statements are reasonable, we cannot promise that our expectations will turn out to be correct. Our actual results could be materially different from and worse than our expectations. We disclaim any obligation to update any forward-looking statements contained herein, except as may be required pursuant to applicable law. With respect to forward-looking statements in this press release, the company seeks the protections afforded by the Private Securities Litigation Reform Act of 1995. These risks and uncertainties, as well as other risks and uncertainties that could cause our actual results to differ significantly from management's expectations, are not intended to represent a complete list of all risks and uncertainties inherent in our business, and should be read in conjunction with the more detailed cautionary statements and risk factors included in our Annual Report on Form 10-K for the year ended December 31, 2006, as amended.
EarthLink
CONTACT: For Media, Jerry Grasso, +1-404-748-7208, grassoj@corp.earthlink.net; For Investors, Mike Gallentine, +1-404-748-7153, gallentineml@corp.earthlink.net, both of EarthLink
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