News

CAIS stock likely to be delisted

March 27, 2002

WASHINGTON - CAIS Internet Inc. (Nasdaq:CAIS) yesterday announced that Nasdaq may delist the company's common stock, pending the outcome of a hearing.

On May 17, Nasdaq informed the Internet broadband supplier that it is not in compliance with the net tangible assets, market capitalization, market value of public float and bid price requirements for continued listing, as set forth in Nasdaq's Marketplace Rules.

CAIS is requesting a hearing before Nasdaq's Listing Qualifications Panel. The company's stock will continue to be listed on Nasdaq pending a final decision.

CAIS is attempting to concentrate on its ISP business, reducing costs and improving its balance sheet, to improve shareholder value.

Yesterday, CAIS also announced it was releasing $40.5 million in funds held in escrow from the sale of its CAISSoft Software Solutions subsidiary to Cisco Systems in late 2000. The disbursement of the funds will reduce the company's debt and thereby strengthen its balance sheet.

When Cisco purchased CAIS Software Solutions in October 2000, gross cash proceeds to CAIS were approximately $147 million, of which approximately $40.5 million was placed in escrow.

CAIS Internet Inc. provides always-on, broadband Internet access to its customers through its digital subscriber line service, "HyperDSL," and through T-1, DS-3 and other bandwidth connections in 38 metropolitan areas. The company also provides unstaffed business centers and Internet kiosks to deliver Internet access and content to airports, retail centers and cruise ships.