FT. MYERS, Fla., Dec. 19 /PRNewswire/ -- Palmer Wireless, Inc.
(Nasdaq: PWIR) today announced that net subscriber additions and  operating
cash flow for the fourth quarter ended December 31, 1996 are likely to be
lower than current analyst estimates.   Increased rate discounting and phone
subsidies have become more prevalent during the fourth quarter as cellular
operators have moved to add subscribers and gain market share in advance of
the introduction of PCS.  This increased competitive pricing of cellular
services within the Company's existing markets has affected both net
subscriber additions and revenues per subscriber, resulting in lower than
anticipated operating cash flow.
    For the fourth quarter ended December 31, 1996, Palmer expects to report
net subscriber growth in the range of 13,000 to 17,000 with full year net
internal subscriber gains in the range of 56,000 to 60,000. The Company
anticipates ending 1996 with a total subscriber base in the range of
274,000 to 278,000 customers, a 29% to 31% increase from year-end 1995.
    Palmer expects to report operating cash flow for the fourth quarter in the
range of $16.0 to $17.0 million. For the full year ended December 31, 1996,
the Company projects operating cash flow to be between $66.0 million and
$67.0 million, a 59% to 61% increase as compared to 1995.  The Company
anticipates reporting fourth quarter and year-end results during the first
week of February.
    William J. Ryan, President and Chief Executive Officer of Palmer Wireless,
stated, "While we continue to expand our cellular systems and add to our
subscriber base in the Southeast, our rate of growth slowed during the
quarter, reflecting competitive pressures within our markets.  We are
aggressively meeting this challenge by stepping-up our long-term strategy to
increase revenues by providing superior network coverage and customer service,
while maintaining a low and efficient cost structure.  Over the next year, we
will accelerate the buildout of coverage in our markets, adding nearly 80 new
cell sites.  By year end 1997, Palmer's 300 cell sites will provide customers
with superior, full portable coverage across nearly all of Palmer's service
areas.
    "This improved portable coverage will be further enhanced by Palmer's
digital service rollout.  We have already begun marketing the first digital
PCS service in Fort Myers and expect to continue the rollout of digital
service to our other markets during the first two quarters of 1997.  Palmer's
digital platform will open-up a new group of services to our subscribers and
potential customers.   Additionally, Palmer's system will be compatible with
AT&T's new digital PCS service and will result in additional revenues from
AT&T's customers as they travel in our markets.
    "We will also increase our efforts to reduce operating costs.  We will
continue to run an efficient operation, by internally managing all aspects of
our business from engineering and site acquisition to billing, customer
service and advertising.  This has paid off  handsomely as Palmer has
consistently maintained one of the lowest operating costs per subscriber in
the industry.  As a result of this competitive advantage, we will seek to
aggressively add subscribers profitably.  We will put greater emphasis on
streamlining our operations and will seek to further accelerate this decline
in our operating costs per subscriber.
    "While not apparent in the fourth quarter, we expect to see the results of
our revenue-enhancing and streamlining initiatives benefit the Company over
the long term.  Our strategy puts us in the best position to offer our
customers the greatest value at a low price; resulting in higher penetration,
lower churn and superior operating profits."

    "Safe Harbor" Statement under the Private Securities Litigation Reform Act
Of 1995:
    The statements made in this press release, other than historical financial
results (including projections of fourth quarter results) are forward-looking
in nature.  Palmer's actual results may differ materially from those projected
in this release.  Primary factors that may effect these projections include,
but are not limited to: changes in the overall economy; the number and makeup
of the competitors in each of our markets; the introduction or lack of
introduction of new technology; the ability of Palmer  to secure sufficient
locations to provide adequate coverage within each of our markets; changes in
law and/or regulatory policy; agreements or lack of agreements with
neighboring cellular, PCS, long distance, and/or local exchange carriers; and
the mix of products and services offered in our markets.  You should evaluate
any statements in light of these important factors.

    Palmer Wireless, headquartered in Ft. Myers, Florida, owns and operates
17 non-wireline cellular telephone systems in Florida, Alabama, Georgia and
South Carolina covering a total estimated population of 3.8 million pops and
over 260,000 subscribers.  All of the Company's systems are North American
Cellular Network (NACN) and Cellular One affiliates.  The Company trades on
the Nasdaq Stock Market under the symbol: PWIR

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