FOR IMMEDIATE RELEASE

Media Contact: Terrie Prosper, 415.703.1366, news@cpuc.ca.gov

PUC NAMES FOUR TO THE CALIFORNIA EMERGING
TECHNOLOGY FUND GOVERNING BOARD

SAN FRANCISCO, February 16, 2006 -- The California Public Utilities Commission (PUC) today appointed four members to serve on the governing board of the California Emerging Technology Fund (CETF), created to achieve ubiquitous access to broadband and advanced services in California through the use of emerging technologies by the year 2010.

The CETF was established following the Commission's November 2005 approval of the mergers between SBC and AT&T and between Verizon and MCI in California. As a condition of the mergers, the Commission required the merged companies to provide funds to support the CETF.

The members appointed are:

1) Michael R. Peevey, President, California Public Utilities Commission

2) Senator Martha Escutia

3) Mike Volpi, Senior Vice President, Cisco Systems

4) Carol Whiteside, President, Great Valley Center

The CETF governing board will be responsible for establishing its own Articles of Incorporation, Bylaws, and Charter. The Board will be comprised of 12 total appointees: the four appointed by the Commission today, three appointed by SBC (only one may be an SBC employee), and one by Verizon. Those eight appointees will determine the remaining four board members and the board will be encouraged to make the final four appointments with the goal of making broadband as ubiquitous as possible in California.

"One of the stipulations in approving the mergers was the creation of the CETF to assist underserved, especially low-income and rural communities, in obtaining access to broadband and advanced services," said PUC President Michael R. Peevey. "Whether through education, computer centers, or other unique solutions, our goal in creating the CETF is to bridge the Digital Divide."

More About the CETF

The CETF will focus a significant amount of its resources on the needs of underserved communities and bridging the Digital Divide. Underserved communities include but are not limited to individuals, groups, and organizations that face telecommunications challenges or disadvantages due to physical disabilities, low incomes, inadequate telecommunications infrastructure, language and cultural differences, lack of technological understanding and/or equipment, and other constraints.

Funds dedicated to the CETF will be used to attract matching funds in like amounts from other organizations. Initial funding will be provided by the merging companies for a total initial endowment of $60 million over five years. It is anticipated that a majority of CETF funds will be matched by other private, non-profit, or government entities for specific projects to reach a total goal of at least $100 million in funding over five years.

For more information, please visit the PUC's website at www.cpuc.ca.gov.

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