Leap Wireless to Acquire Chase Telecommunications in Tennessee
SAN DIEGO, Jan. 4 /PRNewswire/ -- Wireless communications carrier Leap Wireless
International, Inc. (Nasdaq: LWIN) today announced that it has agreed to acquire
substantially all of the assets of Chase Telecommunications Holdings, Inc. (ChaseTel),
the owner of a Wireless service provider and related licenses in Tennessee. Leap
currently holds a 7.2% ownership in ChaseTel. The acquisition will allow Leap to move
forward to implement its unique U.S. strategy targeting the mass consumer market with a
flat-rate wireless local area service that offers customers the freedom of mobility at
affordable prices. Leap will request that the Federal Communications Commission
(FCC) transfer the ChaseTel 15 MHz C-Block licenses to Leap, allowing it to offer
service to approximately 6.3 million potential customers (POPs) in Tennessee, including
Chattanooga, Nashville, Memphis and Knoxville metropolitan areas, as well as
contiguous portions of six adjacent states. ChaseTel initiated PCS service in
Chattanooga in September 1998.
"We believe that Tennessee represents an excellent market to initiate Leap's U.S.
wireless strategy. Building on the infrastructure and accomplishments of ChaseTel will
allow us to accelerate our introduction of this service," said Harvey P. White, chairman
and CEO of Leap Wireless. "We think customers will be very excited about our plans for
an affordable service combining local area mobility with fixed wireless service. We will
soon announce the specifics of our plan to launch our unique service concept in
Chattanooga in February."
"Leap has developed an excellent understanding of the Tennessee market that will
enable it to implement its strategy," said Anthony Chase, CEO of ChaseTel. "We are
delighted that Leap's acquisition will take our business to the next level and realize the
enormous potential of this market. In working with Leap, we have found them to be an
excellent partner and look forward to this expanded relationship."
Leap Wireless, headquartered in San Diego, California, is a wireless communications
carrier that deploys Code Division Multiple Access (CDMA) networks in domestic and
international markets with strong growth potential. In conjunction with its strategic
partners, Leap Wireless is building or anticipates building a combination of fixed and
mobile wireless solutions in Mexico, Chile, Australia, Russia and the United States
covering approximately 162 million potential customers, of which Leap's equity share is
approximately 62 million. The world is going wireless, and Leap Wireless believes
CDMA is the technology of choice to increase the teledensity that is critical to economic
growth. For each of its ventures in which it owns a significant position, Leap Wireless is
actively involved in the management of the networks, combining its experience in
international markets with its wireless technical expertise in CDMA. Leap Wireless is
dedicated to bringing the benefits of reliable, cost-effective and high-quality voice and
data services to domestic and emerging markets. For more information about Leap
Wireless, please visit the company's web site at leapwireless.com.
This news release contains certain "forward-looking statements," including statements
regarding the future scope of Leap Wireless networks. 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" 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 for the fiscal year ended August 31, 1998 and other documents filed with the
Securities and Exchange Commission. Factors that could cause actual results to differ
include but are not limited to: delay in or failure to receive FCC approval for the license
transfer, uncertainties regarding Leap's ability to access capital markets, the delayed
build-out of the system in Tennessee, failure of the system to perform according to
expectations, increased competitive pressures that could affect market demand for the
new Leap Wireless service, uncertainties relating to costs and profitability of
development stage companies, the substantial leverage of Leap Wireless and its
operating companies, and the risks associated with international emerging markets.
SOURCE Leap Wireless International, Inc.
/CONTACT: Sarah Thailing, Media Relations, 619-882-6018, or fax,
619-882-6030, sthailing@leapwireless.com, or Rochelle Bold, Investor Relations
619-882-6222, or fax, 619-882-6030, rbold@leapwireless.com; or Albert
Waterhouse of Johnson Waterhouse, 423-756-2608, or fax, 423-267-0475,
amw@johngroup.com, for ChaseTel/
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