Purple Communications, Inc. to Reduce Costs Associated with SEC Reporting by Voluntarily Electing to Deregister its Common Stock with the SEC

ROCKLIN, Calif., March 31 /PRNewswire-FirstCall/ -- Purple Communications, Inc. (Pink Sheets: PRPL) announced today that it has voluntarily filed a Form 15 with the Securities and Exchange Commission (the "SEC") to deregister Purple's common stock under the Securities Exchange Act of 1934, as amended.

Purple is eligible to file Form 15 because its common stock is currently held of record by less than 300 persons.  Purple expects the deregistration to become effective within 90 days of filing the Form 15 with the SEC.  Upon the filing of the Form 15, Purple's obligation to file reports with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q, and periodic reports on Form 8-K, is immediately suspended.  Notwithstanding deregistration, Purple intends to voluntarily file a Form 10-K for the year ended December 31, 2009 as soon as practicable.

Significant Cost Savings with No Negative Impact to Services

As part of many steps Purple has taken to support the long-term health of its business, Purple's Board of Directors and management team believe the benefits of continued public registration no longer outweigh the financial and administrative burdens imposed by reporting requirements.  In addition to substantial cost savings, Purple also believes deregistration will create more time for management to focus on the daily operations of the business.

Deregistration should have no negative impact on the Company's ability to continue to provide services to its customers.

Affect on Current Shareholders

During the deregistration process, Purple anticipates that its shares of common stock will continue to be quoted on the Pink Sheets, but there can be no assurance that any broker will make a market in Purple's common stock.  For shareholders who continue to hold Purple's stock past the deregistration date, they will continue to be shareholders of Purple and will be entitled to receive whatever disclosures and reports Purple elects to distribute to its shareholders, if any.

Safe Harbor

The statements contained in this news release that are not based on historical fact – including statements regarding the anticipated results of the transactions described in this press release – constitute "forward-looking statements" that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terminology such as "may," "will," "expect," "estimate," "anticipate," "continue," or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve risks and uncertainties, including, but not limited to: (i) our ability to integrate the businesses and technologies we have acquired; (ii) our ability to respond to the rapid technological change of the wireless data industry and offer new services; (iii) our dependence on wireless carrier networks; (iv) our ability to respond to increased competition in the wireless data industry; (v) our ability to generate revenue growth; (vi) our ability to increase or maintain gross margins, profitability, liquidity and capital resources; and (vii) difficulties inherent in predicting the outcome of regulatory processes.  Such risks and others are more fully described in the Risk Factors set forth in our filings with the Securities and Exchange Commission.  Our actual results could differ materially from the results expressed in, or implied by, such forward-looking statements. Purple Communications™ is not obligated to update and does not undertake to update any of its forward looking statements made in this press release.  Each reference in this news release to "Purple," the "Company," or "We," or any variation thereof, is a reference to Purple Communications™, Inc. and its subsidiaries.

About Purple Communications, Inc.

Purple Communications is a leading provider of text, video relay (VRS), on-site interpreting services, and video remote interpreting (VRI) for the Deaf and Hard of Hearing, offering a wide array of options designed to meet the varied communications needs of its customers.  Purple's vision is to enable free-flowing communication between people, inclusive of differences in abilities, languages, or locations.  For more information on Purple Communications, Inc. or its services, visit www.purple.us by Internet, relay by visiting www.ip-relay.com, or video phone by connecting to purple.tv.

"Purple" and the Purple logo are registered trademarks of Purple Communications, Inc. Other names may be trademarks of their respective owners.

SOURCE Purple Communications, Inc.