SAN DIEGO, Oct. 17 /PRNewswire/ -- Wireless communications carrier Leap
Wireless International, Inc. (Nasdaq: LWIN) announced today that it has signed
a definitive agreement to acquire eight PCS operating licenses covering
approximately 2.7 million potential customers (1998 POPs) from CIVS IV License
Sub I, LLC ("Cook Inlet"), a joint venture between Cook Inlet Region, Inc. and
VoiceStream Wireless Corporation, for an undisclosed amount. The markets
included within this acquisition are Adrian, Battle Creek, Grand Rapids,
Jackson and Muskegon, Mich.; Pittsburg, Kan.; and Sandusky and Toledo, Ohio.
These eight licenses were the subject of a previously announced agreement
to purchase twelve licenses from DCR PCS, Inc., a subsidiary of Pocket
Communications, Inc., which was subject to overbid in an auction held pursuant
to Section 363 of the U.S. Bankruptcy Code. Leap participated in the auction
but opted out of further bidding for all twelve licenses, and Pocket/DCR
agreed to sell the licenses to Cook Inlet. Leap's agreement with Cook Inlet
is subject to certain conditions, including Cook Inlet's completion of the
acquisition of the licenses from DCR PCS, Inc. and approval from the Federal
Communications Commission (FCC).
Leap will receive a $4.2 million break-up fee from Pocket in connection
with Leap's terminated agreement with DCR PCS, Inc. This break-up fee will be
paid at the closing of Cook Inlet's purchase of the licenses from DCR PCS,
Inc.
Leap currently owns or has rights to acquire licenses covering
approximately 41.7 million potential customers (1998 POPS) in 27 states to
support the roll out of its innovative Cricket local wireless service.
"Our innovative Cricket business model allows us to be selective in the
purchase of spectrum. It also calls for us to acquire spectrum at prices
which will allow us to offer affordable wireless service to our customers,"
said Harvey P. White, Leap's chairman and CEO. "We evaluate acquisitions on a
case by case basis, and in this instance we chose to purchase these licenses
from Cook Inlet. The addition of these licenses, along with our planned
market launches, puts us in a strong position to carry out Leap's mission and
bring our flat-rate, all-you-can-talk local wireless service to people who are
completely new to the category. This also creates an opportunity for more
people to leave their landline phones behind and adopt the convenience of
wireless in their everyday life."
Priced competitively with traditional home phone service, Cricket service
lets customers make and receive virtually unlimited phone calls in their local
service area. Cricket service has achieved strong penetration and brand
awareness in its first two markets, Chattanooga and Nashville, Tenn. Leap
plans to launch Cricket service in eight more markets by the end of this year
and to offer service in a total of 35 markets by the end of 2001.
About Leap Wireless International, Inc.
Leap Wireless International, Inc., headquartered in San Diego, Calif., is
dedicated to playing a leading role in transforming wireless communications
for the mass consumer market. As a different kind of wireless company, Leap
is designing solutions to make the wireless future a reality. Domestically,
Leap has launched the "Comfortable Wireless" service called Cricket that lets
customers make all their local calls and receive calls from anywhere for one
low, flat rate. Leap seeks to spark the wireless revolution by developing
innovative voice and data services that deliver value to customers. For more
information, please visit http://www.leapwireless.com.
This news release contains "forward-looking statements," including
statements regarding the rollout plans and financing of Leap and its operating
companies. Forward-looking statements, which are based upon certain
assumptions and describe future plans, strategies and expectations of the
Company, are generally identifiable by use of the words "believe," "expect,"
"intend," "plan," "anticipate," "estimate," "project," "aim" or similar
expressions. The ability of the Company to predict actual results and other
future events is inherently uncertain. Important factors which may cause
actual results to differ materially from the forward-looking statements
contained herein or in other public statements by the Company are described in
the section entitled "Risk Factors" in the Company's Annual Report on
Form 10-K for the fiscal year ended August 31, 1999 and other documents filed
with the Securities and Exchange Commission. Those factors most likely to
cause actual results to differ include but are not limited to: uncertainties
regarding the ability of Leap and its operating companies to achieve a
time-to-market advantage, launch networks according to plan, raise sufficient
capital for continued expansion and operation, performance uncertainties and
potential delays relating to the deployment of large scale construction
projects and uncertainties relating to negotiating and executing definitive
agreements and the closing of transactions described herein.
SOURCE Leap Wireless International, Inc.
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Related links:
http://www.leapwireless.com
Company News On-Call:
http://www.prnewswire.com/comp/132891.html or fax,
800-758-5804, ext. 132891
CONTACT:
Jessica Levy, Media Relations of Bock
Communications, Inc., 714-540-1030, jlevy@bockpr.com, for Leap
Wireless; or Sarah Thailing, Media Relations, 858-882-6018,
sthailing@leapwireless.com, or Jim Seines, Investor Relations,
858-882-6084, jseines@leapwireless.com, both for Leap Wireless
International
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