- Major milestone in Pac-West's reorganization following its April 2007 Chapter 11 filing - Disclosure statement describing Plan of Reorganization submitted for approval of Bankruptcy Court prior to solicitation of creditor votes - Plan consistent with future western US market focus - Plan provides that upon exit from Chapter 11, Pac-West will be owned by the Plan sponsor s, which are affiliates of existing investor Columbia Ventures Corporation STOCKTON, Calif., Aug. 6 /PRNewswire-FirstCall/ -- Pac-West Telecomm, Inc. (OTC:PACW), a wholesale provider of advanced telecommunications services, announced today that it and its subsidiaries have filed their Joint Plan of Reorganization ("Plan") and disclosure statement with the U.S. Bankruptcy Court for the District of Delaware. Pac-West must first obtain Bankruptcy Court approval for the disclosure statement, which provides details regarding the Company, the Chapter 11 cases and the Plan, before the Company can solicit votes on its Plan. Following Court approval of the disclosure statement, the Plan would become effective only after receiving the votes required under bankruptcy law, confirmation by the Court and satisfaction of the conditions contained in the Plan. The Plan provides that upon exit from Chapter 11, the capital stock of Pac-West will be owned by an affiliate of Columbia Ventures Corporation (CVC). Through affiliates, CVC is an existing investor and secured lender to Pac-West and has provided debtor-in-possession financing through the reorganization process. Michael Katzenstein, Pac-West's Chief Restructuring Officer, said, "We are pleased to have reached this important milestone in Pac-West's reorganization and we look forward to obtaining Bankruptcy Court approval to present this Plan and disclosure statement to our creditors. Upon consummation of the Plan, Pac-West's balance sheet will be significantly stronger. Its return to financial health will enable it to compete more effectively in the marketplace, continue to provide excellent customer service and introduce innovative new services." He noted that the Plan is the product of discussions with key creditor groups, carriers, suppliers and CVC and believes that the Plan is in the best interests of all constituents. Wally Griffin, Pac-West's Chairman, President and Chief Executive Officer, noted that the Plan is consistent with the Company's recently-announced business plan to grow in its western US markets. In July, Pac-West announced plans to exit the 24 states and the District of Columbia that are now served by the Company's eastern network and to concentrate on states served by its western network. He also praised the Company's customers and management team and thanked them. "Our team's sustained focus on customer service and network reliability has earned the support of customers and I am grateful for the support of both," he said. Jim Hensel, Senior Vice President at CVC, said, "Pac-West is poised to exit from Chapter 11 with profitable operations and a great customer base in attractive markets. CVC is very pleased by this important step, which puts Pac-West on track for exit by the end of the year. We have worked closely with the dynamic and customer-focused Pac-West team and we are eager to foster Pac-West's continuing growth and success." 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 Telecomm, Inc., +1-209-926-3490 Web site: http://www.pacwest.com/

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