- Long-Standing Texas State Tax Liability Settled - OMAHA, NE - June 11, 2008 - Rapid Link, Incorporated (OTCBB: RPID), a leading provider of WiMax and Communication Services, announced today the final settlement, and release from any ongoing liability, of a long-standing sales tax dispute in the State of Texas. A result of the settlement was the elimination of a $1,062,000 current liability.
The original liability was due to an assessment by the State of Texas for past due sales tax. This assessment stemmed from an alleged underpayment of sales taxes by a now dissolved subsidiary of Rapid Link Incorporated. At no time was there a judgment against Rapid Link Incorporated; however the potential for a future judgment necessitated the accrual of this potential liability. John Jenkins, Chief Executive Officer of Rapid Link states, "Though it was a long time coming, we are very pleased to settle this issue once and for all, and again show our shareholders that we are serious about our goal to attain a net positive working capital position. This is just one of many steps we are taking to do just that." Chris Canfield, Chief Financial Officer of Rapid Link states, "Extinguishing this liability has improved our balance sheet significantly. In the past year Rapid Link has seen its Chief Executive convert $900,000 of debt into equity at above market prices, announced the extensions of virtually all short-term notes into long-term notes due in 2011, and raised significant capital, all of which has dramatically improved our working capital position. We are confident we can now aggressively grow our business without the need to seek additional capital." About Rapid Link, Incorporated. Rapid Link, Incorporated is a Diversified Communication Services company, supplying bundled internet and voice services to Business and Residential customers. Rapid Link offers broadband access via its own facilities to ensure fast and reliable delivery of its content. As a leading licensed WiMAX carrier, Rapid Link is on the cutting edge of this exciting new technology. We are one of the only carriers that can offer an end-to-end solution for our customers without a dependency on any other company's resources. For more information about Rapid Link, visit www.rapidlink.com. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties. The Company wishes to caution readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include, but are not limited to, risks and uncertainties such as the failure to satisfy contractually agreed upon closing conditions that may delay or prevent the closings of subsequent debt financings contemplated by the applicable agreements; the risk factors noted in the Company's filings with the United States Securities and Exchange Commission, such as the trading price of the Company's common stock reaching levels that would cause funding to occur; the rapidly changing nature of technology, evolving industry standards and frequent introductions of new products, services and enhancements by competitors; the competitive nature of the markets for the Company's products and services; the Company's ability to gain market acceptance for its products and services; the Company's ability to fund its operational growth; the Company's ability to attract and retain skilled personnel; the Company's ability to diversify its revenue streams and customer concentrations; and the Company's reliance on third-party suppliers. For more information: Rapid Link, Incorporated Investor Relations 402-392-7561 Or: DME Capital Investor Relations David Elias 516-967-0205 -------------------------------------------------------------------------------- WISPA Wants You! Join today! http://signup.wispa.org/ -------------------------------------------------------------------------------- WISPA Wireless List: [email protected] Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
