Adelphia Recovery Trust and Reorganized Adelphia Announce Settlement with Motorola

WILMINGTON, Del. -- The Adelphia Recovery Trust (the "Trust") and Reorganized Adelphia Communications Corporation ("ACC") announced a conditional settlement among the Trust, ACC and Motorola in the lawsuit entitled Adelphia Communications Corporation, et al. v. Motorola, Inc., et al., Adversary Case No. 06-01558- REG). The parties to the settlement do not include claim transferees who hold portions of the Motorola Claim asserted against ACC Debtors' estates. Under the terms of the settlement, if the settlement becomes effective, Motorola will make a payment to the Trust and ACC, respectively, and the portion of the Motorola Claim assigned to the claim transferees will be deemed to be an Allowed ACC Trade Claim, thereby entitling the claim transferees to a distribution consistent with distributions received by holders of Allowed ACC Trade Claims and future distributions, if any, from the Trust and ACC on a pari passu basis with other ACC Trade Creditors. The portion of the Motorola Claim still held by Motorola will be waived in its entirety. One of the conditions to the settlement is that the Bankruptcy Court enter an order that becomes final and non-appealable within 90 days to the effect that the Motorola Claim against the ACC Debtors' estates (including the portion held by claim transferees) is only allowable against ACC and not against any other Debtors' estates. That issue may be contested by the claims transferees. There can be no assurance that this and other conditions will be satisfied in order to effectuate the terms of the settlement. If the settlement becomes effective, it will resolve all claims pending in the bankruptcy action, between Motorola, on the one hand, and ACC and the Trust. A copy of the Rule 9019 motion for settlement approval is available in the "Important Documents Adelphia Recovery Trust" section of Adelphia's website at www.adelphiarestructuring.com.

The settlement was negotiated under the supervision of the Honorable Daniel Weinstein (Ret.). The Trust in its discretion may retain some or all of its settlement proceeds for funding its operations, including expenses incurred to maintain and administer the Trust and prosecute Trust litigation, all subject to the terms and conditions of the Plan and the Declaration of Trust. No decision has been made by the Trust as to the amount or timing of any distributions to Trust interest holders. ACC, with the prior approval of the Trust, may also retain some or all of its settlement proceeds for funding its operations, including expenses incurred to maintain and administer the ACC Debtors' Estate. No decision has been made by ACC as to the amount or timing of any excess reserve distributions.