SCOTTSDALE, Ariz., Dec. 14 /PRNewswire-FirstCall/ -- Rural/Metro Corporation (BULLETIN BOARD: RURL) announced today that it has been awarded the exclusive contract to provide emergency and non-emergency ambulance services to the growing City of Salem, Oregon.
The contract was awarded Monday by the City of Salem Selection Committee and Salem Fire Department Chief Mike Knode in a competitive bidding process that included the Company’s primary national competitor.
The contract will begin July 1, 2005 with an initial term of five years, followed by five, one-year optional renewal terms, for a total possible length of 10 years. The Company estimates the contract will generate approximately $5 million in net revenue annually.
Jack Brucker, President and Chief Executive Officer, said, “We are very pleased to begin serving the citizens of Salem and look forward to contributing to the EMS system in the area. We have established a growing presence in the Pacific Northwest and intend to continue our efforts to win new business in the region.”
Salem’s emergency medical transportation services are currently provided by the Salem Fire Department. Under the new agreement, Rural/Metro will partner with the Fire Department to provide 911 medical transportation, as well as all non-emergency medical transportation within the City. The Salem contract represents Rural/Metro’s entrance to the Oregon ambulance market.
Salem is located midway between Portland and Eugene and is Oregon’s capital city. This growing community is home to more than 143,000 residents.
Boo Heffner, President of Rural/Metro’s West Emergency Services Group, said, “Our ability to effectively partner with the City and the Salem Fire Department provide a long-term solution to an important issue, and to build on our reputation as a quality service leader made Salem an attractive market for us. We are committed to providing the highest levels of emergency medical transportation, as well as contributing to the future strength of the City’s EMS system.”
Rural/Metro Corporation provides emergency and non-emergency medical transportation, fire protection, and other safety services in 23 states and approximately 400 communities throughout the United States.
This press release may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, among others, the company’s ability to secure new contracts, retain existing contracts, and improve earnings and operating margins. Additional factors that could affect the company are described in its Form 10-K for the year ended June 30, 2004 under the caption “Risk Factors” in the Management’s Discussion and Analysis section, and other factors as described from time to time in the company’s SEC filings. The company disclaims any obligation to update its forward-looking statements.
CONTACT: Liz Merritt, Rural/Metro Corporation (480) 606-3337 Jim Byers, Financial Dynamics (Investors) (415) 439-4504
Rural/Metro Corporation
CONTACT: Liz Merritt of Rural/Metro Corporation, +1-480-606-3337, or JimByers of Financial Dynamics (Investors), +1-415-439-4504, for Rural/Metro
Web site: http://www.ruralmetro.com/