NTELOS Holdings Corp. Announces Workforce Reductions

2009-11-10 15:58:07 -

NTELOS Holdings Corp. (NASDAQ: NTLS) today announced workforce reductions in its wireless and corporate organizations.

Workforce reductions will be achieved through the offering of an early retirement incentive plan, the elimination of certain vacant and budgeted positions and the elimination of some jobs. The reduction is expected to be primarily from support functions, with minimal impact to customer-facing positions.

“We regret the

impact this will have on our employees,” said James S.

Quarforth, chief executive officer of NTELOS. “Economic conditions over the past year have impacted our wireless business and as the wireless industry matures, it is proper for us to proactively take these measures to support continued growth in adjusted EBITDA and free cash flow.”


Quarforth continued, “Every company reaches points in time where it is necessary to adjust its cost structure to reflect current business cycles and industry forecasts. Primarily through a voluntary early retirement program, we did this ‘right-sizing’ in our wireline organization last year, and the results are clear as we are now achieving record levels of adjusted EBITDA in those segments. It is the appropriate time to, proactively, do the same for our wireless and corporate operations.”

These actions will result in approximately $1.5 million in cash severance and other non-cash pension and other post-retirement curtailment and settlement charges in 2009. Collectively, all these workforce reductions will generate net savings and reduce future expenses by approximately $4 million for the year 2010.

About NTELOS


NTELOS Holdings Corp. is an integrated communications provider with headquarters in Waynesboro, VA. NTELOS provides products and services to customers in Virginia, West Virginia, Kentucky, Ohio, Tennessee, Maryland and North Carolina, including wireless phone service, local and long distance telephone services, IPTV-based video services, and data services for internet access and wide area networking. Detailed information about NTELOS is available at www.ntelos.com : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. .

SPECIAL NOTE FROM THE COMPANY REGARDING FORWARD-LOOKING STATEMENTS

Any statements contained in this presentation that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. The words "anticipates," "believes," "expects," "intends," "plans," "estimates," "targets," "projects," "should," "may," "will" and similar words and expressions are intended to identify forward-looking statements. Such forward-looking statements reflect, among other things, our current expectations, plans and strategies, and anticipated financial results, all of which are subject to known and unknown risks, uncertainties and factors that may cause our actual results to differ materially from those expressed or implied by these forward-looking statements. Many of these risks are beyond our ability to control or predict. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements.
Furthermore, forward-looking statements speak only as of the date they are made. We do not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise. Important factors with respect to any such forward-looking statements, including certain risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statements, include, but are not limited to: rapid development and intense competition in the telecommunications industry; adverse economic conditions; operating and financial restrictions imposed by our senior credit facilities and other indebtedness; our cash and capital requirements; declining prices for our services; the potential to experience a high rate of customer turnover; our dependence on our affiliation with Sprint Nextel ("Sprint"); a potential increase in our roaming rates and wireless handset subsidy costs; the potential for Sprint to build networks in our markets; federal and state regulatory fees, requirements and developments; loss of our cell sites; the rates of penetration in the wireless telecommunications industry; our reliance on certain suppliers and vendors and the transition of our prepay billing services to a new vendor; and other unforeseen difficulties that may occur. These risks and uncertainties 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 SEC filings, including our Annual Reports filed on Forms 10-K.



NTELOS Holdings Corp.Michael MinnisDirector, Media and

Public Relations(540) 946-7290 minnism@netelos.com : mailto:minnism@netelos.com orWesley
B. WamplerDirector, Investor Relations(540) 949-3447 wamplerwes@ntelos.com : mailto:wamplerwes@ntelos.com