HSAC - High Speed Acess Corp (HSAC)

[jmhollen]

High Speed Access Corp. Announces Record and Distribution Dates for a Second Cash Distribution of $.17 Per Share and Intent to Convert to a Liquidating Trust

LOUISVILLE, Ky., Aug 6, 2003 /PRNewswire-FirstCall via COMTEX/ -- High Speed Access Corp. "HSA" (OTC Bulletin Board: HSAC) announces today that its Board of Directors has authorized a cash distribution of $.17 per share on August 29, 2003, payable to shareholders of record as of August 22, 2003. The $.17 per share distribution is the second liquidating cash distribution made by the Company pursuant to the Plan of Liquidation and Dissolution approved by the Company's stockholders on November 27, 2002. In view of the Company's recent collection of the remaining $1 million holdback from Charter, the Board of Directors has also authorized a reduction in the general contingency reserve from $2 million to $1.15 million effective as of June 30, 2003.

As of June 30, 2003, the Company had the following net assets in liquidation:

HIGH SPEED ACCESS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF NET ASSETS IN LIQUIDATION
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
(UNAUDITED)

JUNE 30, DECEMBER 31,
2003 2002

ASSETS
Cash and cash equivalents $8,066 $63,640
Short-term investments 859 1,237
Interest receivable 65 392
Charter holdback -- 2,092
Furniture and fixtures 62 113
Total assets 9,052 67,474

LIABILITIES
Accounts payable and accrued liabilities 445 2,571
Estimated costs to be incurred
during the wind-up period 600 1,089
Total liabilities 1,045 3,660
Net assets in liquidation 8,007 63,814
Less: Contingency reserve 1,150 2,000
Net assets available for
distribution to stockholders $6,857 $61,814
Net assets in liquidation per share $0.20 $1.58
Net assets available for distribution
to stockholders per share $0.17 $1.53
Outstanding shares used
in computing per share amounts 40,294,783 40,294,783


The Company does not expect to make any subsequent cash distributions prior to
the transfer of its remaining assets and liabilities to a liquidating trust at
year-end. On or before December 31, 2003, the Company expects to close its stock
transfer books, cease the filing of periodic reports with the SEC, and transfer
its $1,150,000 general contingency reserve (approximately $.0285 per share) and
any remaining assets and liabilities, into a liquidating trust. The estimated
net realizable values of assets and settlement amounts of liabilities represent
our best estimate of the recoverable values of the assets and settlement amounts
of liabilities. There can be no assurance, however, that we will be successful
in selling the assets at their estimated net realizable value or in settling the
liabilities at their estimated amounts. In the event claims against the Company
or the trust are less than the contingency reserve, the liquidating trustee will
make a Final Liquidation payment to stockholders on or before December 4, 2005
in an amount equal to any remaining contingency reserve.

Shares of the Company's stock cannot be traded publicly once the Company
converts to a liquidating trust. After the Company's stock transfer books have
been closed, the Company's stockholders will own a beneficial interest in the
liquidating trust according to their holdings of common stock, and certificates
representing shares of common stock will not be assignable or transferable on
the Company's books except by will, intestate succession or operation of law.
After the final record date for the recording of stock transfers, the Company
will not issue any new stock certificates, other than replacement certificates.

Stockholders are urged to consult their tax advisors with respect to the tax
consequences of the Company's liquidating distributions and the closure of the
Company's stock transfer books. The following summary of certain income tax
consequences is included for general information only and does not constitute
legal advice to any stockholder.

The Company believes that its liquidation is a taxable transaction, and that in
most cases, its stockholders will recognize gain or loss equal to the difference
between (i) the sum of the amount of cash distributed to them and the fair
market value (at the time of distribution) of any property distributed to them,
and (ii) their tax basis in their shares of the common stock. A stockholder's
tax basis in his or her shares will depend upon various factors, including the
amount paid by the stockholder for his or her shares and the amount and nature
of any distributions received with respect to those shares. Any gain will be
recognized by reason of the liquidating distributions only to the extent that
the aggregate value of such distributions received by a stockholder with respect
to a share exceeds their tax basis for that share. Stockholders should note
carefully that any loss will generally be recognized only upon either (i) a sale
of the stockholder's shares prior to commencement of the trust, OR (ii) when the
final distribution from the liquidating trust has been received and then only if
the aggregate value of the liquidating distributions with respect to a share is
less than the stockholder's tax basis for that share. If stockholders retain
their shares during the liquidation period, they may not be able to recognize
any loss until 2005 (or possibly later if the liquidation is not complete after
three years.) Any gain or loss recognized by a stockholder will be capital gain
or loss provided the shares are held as capital assets.

Upon transfer of the Company's remaining assets to the liquidating trust at
year-end, HSA intends to structure such trust so that its stockholders will be
treated for tax purposes as having received their proportionate share of the
property at the time of transfer, and thus stockholders should be aware that
they may be subject to tax on their proportionate value of such transferred
assets, whether or not they have received any actual distributions from the
liquidating trust with which to pay the tax.

SOURCE High Speed Access Corp.

CONTACT:
George E. Willett, President and CFO of High Speed Access Corp., [phone]