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December 3, 2008 Dear Valued Hawaiian Telcom Customer: Hawaiian Telcom has taken an important step to better position itself for long-term success and since we see our customers as key partners in this process, we would like to give you an overview and describe what it means to you. As you know, on Monday, December 1, 2008, the Company announced that to facilitate its balance sheet restructuring it filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code. In addition, the Court granted us interim authority to use our $75 million of cash on hand as of November 30. This is sufficient to fund customer programs and employee wages, and to pay vendors and suppliers for all post-petition goods and services and other amounts authorized by the Court. Hawaiian Telcom is not going out of business. You can rest assured that your service will continue without interruption. Chapter 11 means reorganization, not liquidation. It is a tool to enable us to restructure our debt and strengthen our business so that we can better navigate this challenging operating environment and more effectively compete in the marketplace. We took this decisive action and made the difficult decision to utilize Chapter 11, which we believe provides the best course of action to support what is in the best interests of our customers, employees, and other critical constituents. We believe this course of action will make us a stronger and more financially secure company and allow us to better serve you going forward. We are committed to continuing to provide you quality customer service throughout the Chapter 11 process. Many companies that have filed for reorganization, including Hawaiian Airlines, United Airlines, Macy’s, Toys ‘R Us, and K-Mart and many others, have strengthened their businesses and are operating today. With your support and dedication, we are optimistic that we, too, have a successful future ahead of us. If you are contemplating any additions or changes to your communication services or equipment, please contact your account manager or the customer service center as you normally would. You have our commitment that we will continue to update you throughout this process. Moreover, we invite you to visit our website, www.hawaiiantel.com, call our toll-free reorganization information line at (888) 733-1409. We consider our customers part of the Hawaiian Telcom family and look forward to providing you with excellent service for many years to come. Sincerely, Eric K. Yeaman |