Yesterday, Excite@Home's shares halved in New York to 47 cents (32p) after the company warned investors that it does not have enough money to get through the year.
However, Excite UK has been operating on an "18-month business plan", general manager Rebecca Miskin said. The company is close to profitability on a month-by-month basis and has "enough cash reserves to last at least another year and probably a lot longer", she said.
Excite UK is a joint venture between Excite@Home and BT. Under the agreement, the partners have the right of refusal to buy out the other shareholder if one becomes insolvent.
BT has let its stake in the company be diluted to 42% in recent years. If it did not buy Excite@Home's share in the division, the stake is expected to be of interest to other European ISPs, such as Tiscali in Italy or T-Online in Germany.
This morning, Excite@Home's shares had fallen a further seven cents to 40 cents (27p) on Nasdaq.