Exhibit 99.1
Citizens Communications
3 High Ridge Park
Stamford, CT 06905
203.614.5600
Web site: www.czn.net
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FOR IMMEDIATE RELEASE
Contact:
Michael Bromley
Investor Relations
203.614.5218
mbromley@czn.com
Citizens Communications Announces Initial Decision
by U.S. District Court in Bangor, Maine Litigation
Stamford, CT, June 28, 2006 - Citizens Communications Company (NYSE: CZN)
announced today that the United States District Court for the District of Maine
yesterday issued Findings of Fact and Conclusions of Law in the initial
liability phase of an environmental contamination lawsuit filed by the City of
Bangor, Maine against Citizens Communications Company. The City of Bangor had
alleged that Citizens is solely responsible for the costs of cleaning up
environmental contamination in the Penobscot River alleged to have resulted from
the operation of a manufactured gas plant owned by Citizens from 1948 until
1963.
With respect to the majority of the alleged contamination in the Penobscot River
that is the subject of the case, the Court found that "the possibility of any
human contact and the risk of endangerment to humans or the environment is
remote and de minimus." The Court determined that Citizens and the City should
share cleanup costs for the remaining smaller section of the River 60% and 40%,
respectively. "We are pleased that the Court has both recognized that the
alleged contamination that needs to be remediated is limited to a small section
of the River and that the City also has significant responsibility for the
remediation," said Hilary Glassman, Senior Vice President and General Counsel of
Citizens.
Citizens is continuing to evaluate the decision and the costs it may incur in
connection with any required remediation of the smaller section of the River.
The precise nature of the remedy in this case remains to be determined by
subsequent proceedings. In the interim, Citizens intends to (i) seek relief from
the Court in connection with the adverse aspects of the Court's opinion, (ii)
continue pursuing its right to obtain contribution from the third parties
against whom Citizens has commenced litigation in connection with this case, and
(iii) vigorously prosecute a lawsuit against certain insurance carriers for
indemnification for any remedial costs ultimately assessed against it and for
all costs of defense.
Citizens cannot at this time determine what amount it may recover from third
parties or insurance carriers. The City had claimed that a large section of the
Penobscot River required remediation at a cost to Citizens in excess of $50
million. Citizens believes that the Court's decision confirms that the City's
allegations about the potential scope of cleanup, as well as Citizens' sole
responsibility for cleanup costs, are without merit.
About Citizens Communications Company
Citizens Communications Company (NYSE: CZN) is a full-service communications
provider and one of the largest local exchange telephone companies in the
country. Under the Frontier brand name, the company offers telephone, television
and internet services, as well as bundled offerings, ESPN360 streaming video,
security solutions and specialized bundles for small businesses and home
offices. Additional information about Frontier's products and services is
available at www.frontier.myway.com and www.frontieronline.com. For more
information about Citizens Communications, visit www.czn.net.
This press release contains forward-looking statements that are made pursuant to
the safe harbor provisions of The Private Securities Litigation Reform Act of
1995. These statements are subject to risks and uncertainties that could cause
actual results to differ materially from those expressed or implied in the
statements. These statements are made on the basis of management's views and
assumptions regarding future events. Forward-looking statements (including oral
representations) involve risks and uncertainties that may cause actual results
to differ materially from any future results, performance or achievements
expressed or implied by such statements. These risks and uncertainties are based
on a number of factors, including but not limited to, the outcome of subsequent
proceedings regarding the precise nature and cost of the remedy in the
above-referenced case, the Court's ability to impose joint and several liability
under the Resource Conservation and Recovery Act ("RCRA"), the outcome of the
Company's request for the Court to reconsider certain aspects of its opinion,
the outcome of appeals that may be filed by either party, if any, and the
outcome of the Company's lawsuits against third parties for contribution and
against insurance carriers for indemnification. The foregoing information should
be read in conjunction with the Company's filings with the U.S. Securities and
Exchange Commission including, but not limited to, reports on Forms 10-K and
10-Q. The Company does not intend to update or revise these forward-looking
statements to reflect the occurrence of future events or circumstances.
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