Purple Communications and FCC Reach Final Settlement

ROCKLIN, Calif., Sept. 20 /PRNewswire/ -- Purple Communications™, Inc. (Pink Sheets: PRPL) ("Purple"), a leading provider of text and video relay and on-site interpreting services for the deaf and hard of hearing, announced a final agreement with the Federal Communications Commission (FCC) relating to the retroactive application of the FCC's February 25, 2010 Declaratory Ruling ("Ruling") (which, among other things, declared internal use of Relay service for deaf and hard of hearing employees and contractors of providers ineligible for TRS Fund reimbursement) and other subpoenas and inquiries dating back to 2007.

Simultaneously with issuance of the Ruling on February 25, 2010, the FCC froze all payments from the TRS Fund to Purple and demanded immediate payment of amounts it contended were owed citing the newly issued Ruling.  With the majority of its revenue frozen by the FCC, Purple faced imminent insolvency and agreed to pay the monies sought by the FCC.  Purple and the FCC entered into an interim standstill agreement on March 8, 2010, which unfroze Purple's TRS Fund payments.  Purple and the FCC agreed to seek final settlement of all outstanding FCC demands, investigations and inquiries over the subsequent months.

The interim, and now final, agreement allowed Purple to continue operations and saved nearly 1,000 jobs, some of which were, and are, held by employees and contractors who are deaf or hard of hearing.  The final settlement provides for a five-year payment plan, with interest, to the TRS Fund of monies demanded by the FCC in February 2010, and ends all FCC Enforcement Bureau inquiries and investigations of the company and its predecessor companies.  The FCC and the Company also agreed to the adoption and implementation of a new industry-leading compliance plan that has been in development by the company for more than a year.

The FCC agreed, as set forth in the Consent Decree, that the settlement does not constitute either adjudication on the merits or a factual or legal determination that Purple failed to comply with FCC's Rules and Orders.  Purple has reserved its rights to challenge the legality of the Ruling and to join other providers and consumer groups whose challenges are pending.  Unless and until the Ruling is reversed, or changed, the Ruling applies to all providers.  As such, Purple expects other providers will be subject to similar inquiries and demands for payment by the FCC.

"We believe the FCC's industry-wide efforts to preserve the integrity of the TRS program are appropriate and well intentioned.  The retroactive application of the Ruling, when applied across the industry, and not just to Purple, will likely yield additional fund recovery for the TRS program," said Dan Luis, CEO of Purple.  "We look forward to continuing to work with the FCC on policy reform that strengthens the industry through clear rules and high standards."

About Purple Communications, Inc.

Purple Communications is a leading provider of onsite interpreting services, video relay and text relay services, and video remote interpreting, offering a wide array of options designed to meet the varied communication needs of its customers.  The Company's vision is to enable free-flowing communication between people, inclusive of differences in abilities, languages, or locations.  For more information on the Company or its services, visit www.purple.us, by Internet relay by visiting www.ip-relay.com, or by video phone by connecting to purple.tv.  "i711," "Purple," and the Purple logo are registered trademarks of Purple Communications, Inc.  "Purple Mail," "Powered by Purple," "i711.com," "My IP-Relay," "IP-Relay.com," "One-Tap Redial," and "P3" are either registered trademarks, trademarks, or service marks of Purple Communications, Inc.  Other names may be trademarks of their respective owners.

SOURCE Purple Communications