WARWICK, NY – July 17, 2012 – Warwick Valley Telephone Company (NASDAQ: WWVY) (the “Company”), the parent company of leading cloud communications pioneers and an independent local exchange carrier (“ILEC”), today announced that in a landmark decision by the New York State Public Service Commission, the Company has been approved to restructure its corporate organization. The approval for restructuring its corporate organization enables the Company to function with the same flexibility for deploying capital for growth and simplifying financial reporting processes as enjoyed by other diversified telecommunications companies.
In its 110th year, Warwick Valley Telephone, a regulated ILEC in the mid-Hudson Valley region of New York, has been granted the ability to transfer its regulated assets to a newly formed wholly-owned subsidiary named Warwick Valley Telephone, which will operate as a regulated subsidiary. In connection with the corporate restructuring, the Company plans to change its name to WVT Communications Group and operate as a holding company. This move follows the recent acquisition of Alteva, a cloud-based unified communications solution provider, and further strengthens the Company’s financial and competitive viability as it continues to grow in the cloud communications sector.
Duane Albro, President and CEO of Warwick Valley Telephone Company, stated, “My thanks to the New York State Public Service Commission for its landmark decision in supporting the viability of competitive communications services providers in New York State. My deepest thanks also go to Governor Andrew Cuomo and his staff along with New York State Senator Bill Larkin for their support of our efforts to continue growing our business in New York. Through the forward-thinking of our government officials it is clear that New York State is open for business and supportive of telecom growth.”
The Company will submit a similar petition with the New Jersey Public Service Commission for its ILEC operations in the northern region of that state. Upon approval, all of the Company’s ILEC operations will have been approved for the corporate restructuring, which will allow a complete transition of the Company into a holding company.