Whippany, NJ - May 7, 2004 - The Board of Directors of the National Exchange Carrier Association (NECA) has determined that President Bob Anderson, Vice President, Secretary and General Counsel Ken Levy, and Vice President, Treasurer and Chief Financial Officer Ron Cook, currently on administrative leave, will not be returning to the company.

On March 26, 2004, the Board placed the three officers on administrative leave after the company’s auditors raised questions about their implementation of the company’s compensation policies. In response to the auditor’s expressed concerns, the board hired an outside law firm to conduct an independent investigation. The report and findings of the investigation have been presented to the NECA Board.

The independent investigators have concluded that the officers did not violate any federal or state laws.  They further concluded that there was no evidence of improper entries in the company’s financial records related to the compensation issues being investigated.

However, the investigators also concluded that the officers were responsible for violations of the canons of communication, candor and confidence expected of them by the Board of Directors. 

At no time did the auditors or the investigators raise concerns regarding NECA’s access charge pooling, universal service fund data collection responsibilities, cost accounting procedures, other regulatory or legal matters, or any of the organizations’ contracts or its dealings with customers. Nor did the investigator or the auditors raise any concerns with regard to compliance with FCC rules.

NECA continues to provide its members with the same professional services it has always provided in the day-to-day management of its interstate access tariff and pooling responsibilities, and in serving its member companies.

Board Chairman Bill Hegmann will continue as interim President and CEO.