-- Company to reorganize around operations in the Western US, including California and Washington State STOCKTON, Calif., July 24 /PRNewswire-FirstCall/ -- Pac-West Telecomm, Inc. (OTC:PACW.PK), a wholesale provider of advanced telecommunications services, announced today that it has notified affected customers that it intends to cease operations in 24 states and the District of Columbia. This action will allow Pac-West to reorganize around its remaining operations in the Western US, including its significant market positions in California and other western states. The markets to be exited are: Pac-West West Exited Markets Alabama Illinois Michigan New Jersey South Carolina Delaware Indiana Minnesota New York Tennessee District of Columbia Kansas Mississippi Ohio Texas Florida Kentucky Missouri Pennsylvania Virginia Georgia Maryland North Carolina Rhode Island Wisconsin The Company will shortly file an application with the United States Bankruptcy Court for the District of Delaware for approval of this action and to terminate certain of the Company's contractual obligations in the exited markets. Wallace W. Griffin, Pac-West's Chairman of the Board, President and Chief Executive Officer, noted that this action is a key first step toward the Company's reorganization and emergence from Chapter 11 as a financially- revitalized telecommunications competitor serving the growing needs of its Western US customer base. He said, "Our business in the exited markets was in an early stage of development and was operating at a substantial loss. Pac- West determined that it could not support the costs associated with the relatively small revenue and customer base. It has also become clear to us that the continued availability of financing for operations in those markets is not assured, which would jeopardize our ability to continue to provide uninterrupted service in those markets during the Chapter 11 proceedings. We have therefore concluded that discontinuing services in the exited markets is essential to Pac-West's being able to reorganize under Chapter 11, and that we should do so by giving our customers in those markets as much notice as we can in light of our circumstances. This action is expected to place Pac-West back on the road to profitability. Our priority will now turn to reorganizing around our remaining operations in the Western US." On April 30, 2007, Pac-West and its subsidiaries filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the District of Delaware. Since then, Pac-West has been operating as a debtor-in-possession. On June 7, Pac-West obtained approval for a debtor-in-possession loan facility from Pac-West Funding Company LLC, an affiliate of Columbia Ventures Corporation, an existing investor in Pac-West. Mr. Griffin noted that Pac-West's financial performance continues to be in line with the projections submitted to the DIP lender and to the Bankruptcy Court and that the Company's reorganization activities continue to be on track for an exit late in 2007. About Pac-West Telecomm, Inc. Pac-West is a provider of advanced communications services that enable traditional and next-generation providers, carriers, and service providers to efficiently design, deploy, and deliver integrated communication solutions. Founded in 1980, Pac-West Telecomm, Inc. has been offering communication services to its customers since 1982 and has been a leading provider of wholesale services to Internet Service Providers. For more information about Pac-West and its reorganization, visit http://www.pacwest.com/. Forward Looking Statements In this report, our use of the words "outlook," "expect," "anticipate," "estimate," "forecast," "project," "likely," "objective," "plan," "designed," "goal," "target," and similar expressions is intended to identify forward- looking statements. While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, actual results may differ materially due to numerous important risk factors, including risk factors described in our Annual Report on Form 10-K for the period ended December 31, 2005, as filed with the SEC on March 29, 2006, as revised and supplemented by the risk factors described in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2006, June 30, 2006 and September 30, 2006, as filed with the SEC on May 12, 2006, August 11, 2006 and November 20, 2006 respectively, and which may be further revised or supplemented in subsequent reports filed by us with the SEC. Such risk factors include, but are not limited to risks associated with: our ability to successfully reorganize under Chapter 11 of the U.S. Bankruptcy Code; our ability to comply with the covenants contained in, or the possibility of triggering a default under, our DIP financing facility; our ability to execute our business plans and objectives; our ability to retain customers, suppliers; vendors, partners and employees during our reorganization; regulatory and legal uncertainty with respect to intercarrier compensation payments received by us; the migration to broadband Internet access affecting dial-up Internet access; an increase in our network expenses; our principal competitors for local services and potential additional competitors, which may have advantages that may adversely affect our ability to compete with them. DATASOURCE: Pac-West Telecomm, Inc. CONTACT: Millie Virgil of Pac-West, +1-209-926-3490 Web site: http://www.pacwest.com/

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