SureWest Communications (NASDAQ:SURW) issued the following statement in response to inquiries it has received in connection with a recent Sacramento-area newspaper report that described incorrect debiting of customer accounts by SureWest's third party electronic payment processing vendor:
"The published reports that we have seen incorrectly suggest a widespread problem, when in fact this event was the result of an error by our electronic payment processing vendor, who apparently combined a small current computer file with one or more different older computer files before making routine debits," said Phil Grybas, senior vice president and chief financial officer. "We regret that this occurred at all, but it seems to be limited to our SureWest Broadband unit, and to only a small percentage of its customers. We believe there was no impact on SureWest Telephone, or our other businesses.
"On Thursday, January 20, 2005, we first learned that there was an error in the automatic debit processes being implemented by a third party vendor under contract to do this work for SureWest Broadband. We are fairly certain now that the number of affected current and former customers is less than approximately 350. This is only a small fraction of SureWest Broadband's more than 16,000 current customer accounts. It is also our current understanding that less than $50,000 was debited incorrectly from the affected accounts. Steps were taken immediately to correct the debiting errors.
"SureWest wants those affected to know that we want to make sure the errors that have affected them are fixed completely. Regardless of how this occurred, it is important for people to be reimbursed as promptly as possible for any incorrect debits. The vendor has indicated to us that credits to affected accounts should be completed no later than Tuesday, January 25. Separately, SureWest will take steps to assure reimbursement for any service charges or other bank fees incurred as a result of the vendor's error. A method to secure reimbursement will be communicated shortly.
"We appreciate the patience of this small group of affected customers and former customers while we assure that the erroneous debits are reversed. SureWest has been contacting current and former customers who may have been impacted over the last two days. However if there are others who believe they were affected, we want to hear from them. Any related issues or inquiries can be directed to SureWest by telephone at (916) 789-0095, or (800) 650-2649 which will be staffed Monday through Saturday from 9 a.m. to 5 p.m."
About SureWest
With 90 years in Northern California, SureWest and its family of companies represent an integrated network of highly reliable advanced communications products and services. SureWest provides digital TV, fiber optics, PCS wireless, DSL, high-speed Internet access, data transport, local and long distance telephone service, and directories with the highest standards of customer care. For more information, visit the SureWest web site at www.surewest.com.
Safe Harbor Statement
Statements made in this news release that are not historical facts are forward-looking statements and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. In some cases, these forward-looking statements may be identified by the use of words such as may, will, should, expect, plan, anticipate, or project or the negative of those words or other comparable words. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the company's actual results to differ from those projected in such forward-looking statements.
Important factors that could cause actual results to differ from those set forth in the forward looking statements include, but are not limited to: advances in telecommunications technology, changes in the telecommunications regulatory environment, changes in the financial stability of other telecommunications providers who are customers of the company, changes in competition in markets in which the company operates, adverse circumstances affecting the economy in California in general, and in the Sacramento, California Metropolitan area in particular, the availability of future financing, changes in the demand for services and products, new product and service development and introductions, pending and future litigation, the internal control issues recently identified by the company's independent auditors, and unanticipated changes in the growth of the company's emerging businesses, including the wireless, Internet, video and Competitive Local Exchange Carrier operating entities.