ISDA®
INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION, INC.

NEWS RELEASE

For Immediate Release, Monday, December 1, 2008

For More Information, Please Contact:

Louise Marshall, ISDA New York, +1 212-901-6014, lmarshall@isda.org

Cesaltine Gregorio, ISDA New York, +1 212-901-6019, cgregorio@isda.org

Donna Chan, ISDA Hong Kong, +852 2200 5906, dchan@isda.org

ISDA to publish auction terms for Hawaiian Telcom

New York, Monday, December 1, 2008 - The International Swaps and Derivatives Association, Inc. (ISDA) today announced that LCDX dealers voted to hold an auction for loan-only CDS transactions referencing Hawaiian Telcom Communications, Inc.  Hawaiian Telcom announced on December 1 that it has filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware in Wilmington.

ISDA will facilitate the process by publishing the auction terms on its website, www.isda.org, in the next few weeks. The auction terms, including the auction date, will be determined by the LCDX dealers according to the LCDS Auction Rules published on ISDA's website.

The auction terms will set out a settlement mechanism similar to that used to settle recent credit events including Lehman Brothers and Washington Mutual. However unlike those credit events, the auction mechanism is already built into ISDA's standard loan-only CDS documentation, therefore no protocol is required. This will be the third time the auction has been used to settle loan-only CDS contracts, the first being Movie Gallery in October 2007, and the second being Masonite, the auction for which is scheduled for December 9.  The auction will be administered by Markit and Creditex.

About ISDA

ISDA, which represents participants in the privately negotiated derivatives industry, is among the world’s largest global financial trade associations as measured by number of member firms. ISDA was chartered in 1985, and today has approximately 850 member institutions from 56 countries on six continents. These members include most of the world’s major institutions that deal in privately negotiated derivatives, as well as many of the businesses, governmental entities and other end users that rely on over-the-counter derivatives to manage efficiently the financial market risks inherent in their core economic activities.  Information about ISDA and its activities is available on the Association's web site: www.isda.org.

^®ISDA is a registered trademark of the International Swaps & Derivatives Association, Inc.