Exhibit 99.2
CFW
COMMUNICATIONS
- --------------------------------------------------------------------------------
401 Spring Lane 540 946-3500
Suite 300 FAX: 540 946-3599
PO Box 1990
Waynesboro, VA 22980-7590
Contact: Michael B. Moneymaker
Vice President & CFO
CFW Communications
Phone: (540) 946-3531
Fax: (540) 946-3595
For Immediate Release
- ---------------------
CFW Communications To Sell Directory Assistance
Operations to Telegate AG
WAYNESBORO, Va. - CFW Communications (NASDAQ: CFWC) announced today that
telegate AG, a provider of directory assistance services throughout Germany,
will purchase the Company's directory assistance operations for $35.5 million.
The purchase price consists of $32.0 million in cash and $3.5 million in stock
of telegate AG, a public company traded on the Frankfurt Stock Exchange, in
exchange for the Company's ownership interest in CFW Information Services Inc.
(CFW ISI), a wholly owned subsidiary. CFW ISI provides directory assistance (DA)
for several communications companies, and responds to an average of 180,000
directory assistance requests every business day. Services are provided via
three regional call centers in Waynesboro, Clifton Forge, and Winchester, VA.
The Company will retain ownership of the three call center buildings and lease
the facilities to telegate AG. Closing on the sales transaction will occur after
receipt of customary regulatory approvals.
James S. Quarforth, Chairman and CEO of CFW Communications, said, "This
transaction is consistent with the Company's integrated communications
-- more --
CFW COMMUNICATIONS/TELEGATE AG
2-2-2
provider (ICP) strategy, and the re-shaping of Company resources to focus on the
development and deployment of key strategic services, including digital PCS,
competitive local telephone, Internet, and high speed data services. Proceeds
from this sale will enable other strategic opportunities that more closely align
with our regional ICP strategy." He continued, "telegate has solid directory
assistance experience in Europe, and we are pleased that they will be using the
CFW ISI infrastructure to launch their initial service operations in the United
States."
telegate AG was founded in 1996, and currently has more than 2,500
employees. The company provides directory assistance and other value-added DA
services from 8 call centers throughout Germany. "This is obviously an important
milestone for telegate" stated Dr. Klaus Harisch, co-founder and CEO. "This
acquisition represents our first entry into the U.S. market, and provides for a
stable base of operations, excellent facilities, and employees with a proven
track record. We are very excited about this opportunity."
CFW Communications (NASDAQ: CFWC), doing business as CFW Intelos and
Intelos, is an integrated communications provider with headquarters in
Waynesboro, Virginia. CFW provides a broad range of products and services to
customers in Virginia, West Virginia, Kentucky and Tennessee including digital
PCS, dial-up Internet access, high-speed data transmission, DSL (high-speed
Internet access), and local telephone and long distance telephone services.
Detailed information about CFW Communications and Intelos is available online at
www.cfw.com and www.intelos.com.
- ----------- ---------------
###