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EXHIBIT 99.4
I. CONTACT: LIZ MERRITT, RURAL/METRO CORPORATION
(480) 606-3337
Morgen-Walke Associates
Investor Relations: John Swenson
(415) 296-7383
Media Relations: Christopher Katis
(415) 296-7383
Wire Services: Eric Gonzales
(212) 850-5600
A. FOR IMMEDIATE RELEASE
II. RURAL/METRO CORPORATION GRANTED BANK WAIVER EXTENSION
SCOTTSDALE, ARIZ. (July 17, 2000) - Rural/Metro Corporation (Nasdaq:
RURL) announced today it has been granted its request for an additional 90-day
extension of its waiver of covenant compliance under its revolving credit
facility, through October 14, 2000.
Jack Brucker, President and Chief Executive Officer, said, "Our lenders
have worked closely with us throughout our operational restructuring, and we are
pleased by their confidence in our ability to demonstrate over time that our
plan is sound. Their commitment to this process and to Rural/Metro is
gratifying."
In accordance with the waiver, the Company will continue to accrue an
additional 2 percent annual interest expense. The banks have agreed to continue
to defer cash payment of this additional 2 percent interest during the waiver
periods. Additionally, the Company has neither requested nor drawn additional
funding from its lenders and anticipates fully meeting its obligations through
the waiver period with internally generated funds. The Company continues to work
toward a long-term agreement on its revolving credit facility.
Rural/Metro's operational restructuring began in January and is
expected to be complete by summer's end, as previously announced. The
restructuring included closing or downsizing under-performing, non-emergency
ambulance service areas.
Brucker continued, "We have been very encouraged by the results we have
seen so far, and we anticipate enhanced financial performance and long-term
value for all of our
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stakeholders. As always, we will continue to look for ways to operate
efficiently while maintaining our commitment to the highest standards of patient
care and public safety."
Rural/Metro Corporation provides mobile healthcare services, including
911 and general ambulance transportation, fire protection and other
safety-related services to municipal, residential, commercial and industrial
customers in more than 400 communities throughout the United States and Latin
America.
This press release contains forward-looking statements regarding future
business prospects that involve risks and uncertainties, including the
outcome of future discussions with the Company's lenders, the Company's
ability to improve operating margins by restructuring service areas and
reducing costs, to further increase the efficiency of its collection
process and reduce working capital requirements, and other factors and
risks that are identified from time to time in the Company's SEC
reports and filings.
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