Stephen Buckfelder, Reid Fronk, Stephen Buckfelder, Reid Fronk, and Ashley Robertsand Ashley Roberts

““We will leverage our historical strengths of We will leverage our historical strengths of customer focus, community involvement, customer focus, community involvement, and employee dedication; address issues and employee dedication; address issues that limit profitability and growth; and act that limit profitability and growth; and act with a sense of urgency accountability and with a sense of urgency accountability and teamwork to emerge from bankruptcy and teamwork to emerge from bankruptcy and to succeed as a broadband industry to succeed as a broadband industry leader. We will develop a reputation as a leader. We will develop a reputation as a company with outstanding corporate company with outstanding corporate governance.”governance.”

UrgencyUrgencyAccountabilityAccountabilityIntegrityIntegrityRespectRespectEthical ConductEthical ConductTeamwork and CommunicationTeamwork and CommunicationRecognition and CelebrationRecognition and Celebration

HistoryHistory 19511951- pays $72,000 for a run down movie theater in - pays $72,000 for a run down movie theater in

Coudersport, PennsylvaniaCoudersport, Pennsylvania 19521952-pays $300 for local cable franchise-pays $300 for local cable franchise 19541954-Gus Rigas joins franchise-Gus Rigas joins franchise 19721972- Incorporated, named Adelphia greek for “brother”- Incorporated, named Adelphia greek for “brother” 19831983-John buys out Gus’ shares and his three sons join -John buys out Gus’ shares and his three sons join 19861986-Adelphia goes public -Adelphia goes public 19991999-pays $8.5 billion for Century Communication, -pays $8.5 billion for Century Communication,

Frontier Vision Partners, and Harron CommunicationsFrontier Vision Partners, and Harron CommunicationsBecomes #6 cable company in the nationBecomes #6 cable company in the nation

20012001-Rigas inducted into cable television Hall of Fame-Rigas inducted into cable television Hall of Fame

March 2002March 2002 -Adephia announces that it provided -Adephia announces that it provided collateral for $2.3 billion in loans to the Rigas family.collateral for $2.3 billion in loans to the Rigas family.

April 2002April 2002 -SEC issues formal order of investigation of -SEC issues formal order of investigation of Adelphia Adelphia

May 2002-May 2002- John Rigas resigns from positions as John Rigas resigns from positions as Chairman and CEOChairman and CEO

Timothy Rigas resigns from positions as Executive Vice Timothy Rigas resigns from positions as Executive Vice President, CFO, CAO and Treasurer.President, CFO, CAO and Treasurer.

Stock prices plummetStock prices plummet Erland Kailbourne appointed as CEO and ChairmanErland Kailbourne appointed as CEO and Chairman

June 2002June 2002 -Adelphia filed for chapter 11 protection of -Adelphia filed for chapter 11 protection of the US Bankruptcy Codethe US Bankruptcy Code

Adelphia delisted from NASDAQ Adelphia delisted from NASDAQ July 2002July 2002 - Complaint filed against the Rigas family and - Complaint filed against the Rigas family and

former executives and board membersformer executives and board members August 2002August 2002 -Anthony Kronman ad Rodney Cornelius -Anthony Kronman ad Rodney Cornelius

are elected to the Board of Directorsare elected to the Board of Directors Adelphia receives Bankruptcy Court order establishing Adelphia receives Bankruptcy Court order establishing

procedures for trading ACC’s stock in order to preserve procedures for trading ACC’s stock in order to preserve the use of Adelphia’s net operating losses to offset future the use of Adelphia’s net operating losses to offset future income for tax purposesincome for tax purposes

October 2002October 2002 -Hanover Insurance Company agrees to -Hanover Insurance Company agrees to extend up to $95 million in surety credit to Adelphia, extend up to $95 million in surety credit to Adelphia, allowing for continued operations and maintenance of it’s allowing for continued operations and maintenance of it’s franchise agreementsfranchise agreements

January 2003January 2003 -Official Committee of Equity Security -Official Committee of Equity Security decides that the Rigas family, insiders, can’t vote any of decides that the Rigas family, insiders, can’t vote any of the stock held or controlled by any of the Rigas the stock held or controlled by any of the Rigas defendantsdefendants

March 2003March 2003 - New CEO (William Schleyer) COO (Ron - New CEO (William Schleyer) COO (Ron Cooper), and CFO (Vanessa Wittman) hiredCooper), and CFO (Vanessa Wittman) hired

Adelphia corporate headquarters relocates to Denver, Adelphia corporate headquarters relocates to Denver, ColoradoColorado

May 2003May 2003 - Susan Ness and Philip Lochner - Susan Ness and Philip Lochner become new directors on the Boardbecome new directors on the Board

June 2003June 2003 - Four members of the Board of - Four members of the Board of Directors, who served prior to Adelphias Chapter Directors, who served prior to Adelphias Chapter 11 filing, step down to begin the transition to a 11 filing, step down to begin the transition to a completely independent Board of Directorscompletely independent Board of Directors

April 2004April 2004 -Adelphia begins to explore selling -Adelphia begins to explore selling the company to complete the Chapter 11 the company to complete the Chapter 11 process.process.

John Rigas, Timothy Rigas and Micheal Rigas John Rigas, Timothy Rigas and Micheal Rigas “used the company as their personal piggy bank”“used the company as their personal piggy bank”

They are alleged with taking millions of dollars from the They are alleged with taking millions of dollars from the company to pay for luxuries such as condos, and a golf company to pay for luxuries such as condos, and a golf course as well as to cover personal investment losses.course as well as to cover personal investment losses.

It is also claimed that the Rigas family “violated the It is also claimed that the Rigas family “violated the Racketeer Influenced and Corrupt Organizations Act Racketeer Influenced and Corrupt Organizations Act (RICO), federal conspiracy, securities fraud, bank fraud (RICO), federal conspiracy, securities fraud, bank fraud wire fraud, false operating statistics, state tax evasion wire fraud, false operating statistics, state tax evasion insider trading, and using corporate assets for personal insider trading, and using corporate assets for personal gain.gain.

In the SEC lawsuit, it is alleged that the former In the SEC lawsuit, it is alleged that the former executives excluded billions of dollars in liabilities from executives excluded billions of dollars in liabilities from the financial statements by hiding them on the books of the financial statements by hiding them on the books of “off balance sheet affiliates.” “off balance sheet affiliates.”

They are also accused of falsifying operating stats and They are also accused of falsifying operating stats and inflating earnings to meet the predictions by Wall Street inflating earnings to meet the predictions by Wall Street analysts.analysts.

Stock prices fell from their peak of Stock prices fell from their peak of $66$66 in in May 1999 to just May 1999 to just 1515 cents in June 2002. cents in June 2002.

Investors are weary of big business as Investors are weary of big business as well as investing. The Rigas family well as investing. The Rigas family caused investors to lose at least caused investors to lose at least $60$60 billion.billion.

Employees jobs are threatenedEmployees jobs are threatenedThe welfare of Coudersport Pennsylvania The welfare of Coudersport Pennsylvania

is at risk.is at risk.

Adelphia had planned to build a new office building Adelphia had planned to build a new office building in Buffalo, New York. This building would have in Buffalo, New York. This building would have brought 1000 jobs to the state, as well as increased brought 1000 jobs to the state, as well as increased the economic activity in the area.the economic activity in the area.

Corruption cost NY $2.9 billion, cut tax revenues by Corruption cost NY $2.9 billion, cut tax revenues by $1 billion, and decreased the value of the pension $1 billion, and decreased the value of the pension fund by $9 billion.fund by $9 billion.

Scientific-Atlanta advanced Adelphia $26 a box to help Scientific-Atlanta advanced Adelphia $26 a box to help market a new digital service. On June 10, Adelphia said market a new digital service. On June 10, Adelphia said it never spent the advance as it was intended. Instead it never spent the advance as it was intended. Instead the money was used to reduce expenses. Scientific the money was used to reduce expenses. Scientific Atlanta will probably never see the $83.8 million owed to Atlanta will probably never see the $83.8 million owed to it.it.

• Walt Disney, who sell their ESPN show to Walt Disney, who sell their ESPN show to Adelphia, will see it’s income cut by $50 million.Adelphia, will see it’s income cut by $50 million.

In the summer of 2000, Adelphia purchased a privately In the summer of 2000, Adelphia purchased a privately owned cable company, Prestige Cable. After Adelphia owned cable company, Prestige Cable. After Adelphia declared bankruptcy, creditors to the cable giant declared bankruptcy, creditors to the cable giant searched for ways to make money back. The creditors of searched for ways to make money back. The creditors of Adelphia are currently suing the three stock holders of Adelphia are currently suing the three stock holders of Prestige Cable for knowingly selling to an unstable Prestige Cable for knowingly selling to an unstable company. The creditors are arguing that the company. The creditors are arguing that the stockholders of Prestige worked with the Rigas family in stockholders of Prestige worked with the Rigas family in order to increase the price of Adelphia's stock. order to increase the price of Adelphia's stock.

John Rigas -Found guilty on 18 counts of John Rigas -Found guilty on 18 counts of fraud and conspiracy charges fraud and conspiracy charges

Tim Rigas -Found guilty on 18 counts of Tim Rigas -Found guilty on 18 counts of fraud and conspiracy charges fraud and conspiracy charges

Michael Rigas -Resulted in mistrial due to Michael Rigas -Resulted in mistrial due to a hung jury a hung jury

Time Warner and Comcast Communications are both making Time Warner and Comcast Communications are both making bids on the company.bids on the company.

It is rumored that the two companies are going to join forces.It is rumored that the two companies are going to join forces. By joining together they are hoping to reduce the risk of a By joining together they are hoping to reduce the risk of a

bidding war. Neither company wants to pay too much for the bidding war. Neither company wants to pay too much for the company. It is estimated that Adelphia will sell for $20-$21 company. It is estimated that Adelphia will sell for $20-$21 billion. The two companies will then divide the service areas. billion. The two companies will then divide the service areas.

A key area is Los Angeles, after it is decided who will receive A key area is Los Angeles, after it is decided who will receive this section of California the rest of the land should be divided this section of California the rest of the land should be divided easily.easily.

After filing for chapter 11 bankruptcy, the price of Adelphia After filing for chapter 11 bankruptcy, the price of Adelphia bonds plummeted to pennies on the dollar. Now that there is bonds plummeted to pennies on the dollar. Now that there is talk of Adelphia being sold, the price of Adelphia's bonds talk of Adelphia being sold, the price of Adelphia's bonds have started to rise. have started to rise.