S-A Forges New Deal with Adelphia

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One month after hinting that a new deal was in the works, Scientific-Atlanta
Inc. announced that it has forged a letter of agreement with bankrupt Adelphia
Communications Corp. to handle the purchase of cable equipment going
forward.

The Atlanta-based cable-gear vendor revealed last month that it was working
on a new agreement with the Coudersport, Pa.-based MSO, which is now in Chapter
11 bankruptcy.

S-A's quarterly loss from Adelphia's bankruptcy included $55.2 million in
accounts receivable written off and $199.8 million in canceled orders.

While the new agreement won't recover that loss, it will provide a framework
for Adelphia to place new equipment and service orders.

S-A is not releasing terms of the agreement.

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