WEST POINT, Ga., March 3 /PRNewswire-FirstCall/ -- ITC^DeltaCom, Inc. , a leading provider of integrated communications services to customers in the southeastern United States, today announced that, on February 28, 2006, it received a notice from The Nasdaq Stock Market, Inc. indicating that, for the last 30 consecutive trading days, its common stock has not maintained a minimum market value of publicly held shares ("MVPHS") of $15 million as required for continued inclusion by Marketplace Rule 4450(b)(3) (the "Rule"). Under Marketplace Rule 4450(e)(1), ITC^DeltaCom will be provided 90 calendar days, or until May 30, 2006, to regain compliance with the Rule. If, at any time before May 30, 2006, the MVPHS of ITC^DeltaCom's common stock is $15 million or more for ten consecutive trading days, ITC^DeltaCom will regain compliance with the Rule.
If ITC^DeltaCom does not regain compliance with the Rule before May 30, 2006, Nasdaq will provide ITC^DeltaCom with written notification that its common stock will be delisted. At that time, ITC^DeltaCom will have the right to appeal Nasdaq's determination to a Listings Qualifications Panel. Alternatively, ITC^DeltaCom may apply to transfer its securities to the Nasdaq Capital Market (formerly the Nasdaq SmallCap Market) if it satisfies the continued inclusion requirements for that market.
If ITC^DeltaCom has not regained compliance with the Rule before May 30, 2006, it will review the situation and make a determination at that time of what action it will take.
The calculation of MVPHS excludes the market value of outstanding shares of common stock held by officers, directors and beneficial owners of 10% or more. As a result, ITC^DeltaCom's MVPHS excludes, in addition to the market value of the outstanding common shares held by ITC^DeltaCom's officers and directors, the market value of the approximately 51% of ITC^DeltaCom's total outstanding common shares held by ITC^DeltaCom's principal stockholder group, the Welsh Carson Anderson & Stowe group.
Because MVPHS is based exclusively on the market value of outstanding common shares, ITC^DeltaCom's MVPHS also does not reflect the value of any of ITC^DeltaCom's outstanding preferred stock which, as of January 31, 2006, had a book value of approximately $70 million.
ABOUT ITC^DELTACOM, INC.
ITC^DeltaCom, headquartered in West Point, Ga., provides, through its operating subsidiaries, integrated telecommunications and technology services to businesses in the southeastern United States. ITC^DeltaCom has a fiber optic network spanning approximately 14,500 route miles, including more than 10,900 route miles of owned fiber, and offers a comprehensive suite of voice and data communications services, including local, long distance, enhanced data, Internet, colocation and managed services, and sells customer premise equipment to end-user customers. The Company operates approximately 29 voice switches and 74 data switches, and is one of the largest competitive telecommunications providers in its primary eight-state region. ITC^DeltaCom has interconnection agreements with BellSouth, Verizon, SBC, CenturyTel and Sprint for resale and access to unbundled network elements and is a certified competitive local exchange carrier (CLEC) in Arkansas, Texas, Virginia and all nine BellSouth states. For more information about ITC^DeltaCom, visit the Company's Web site at http://www.itcdeltacom.com/.
Investor Contact: Media Contact:
Richard E. Fish Lee A. Kimball
Chief Financial Officer Vice President, Marketing
256-382-3827 919-863-7149
