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To: SteveG who wrote (9304)	8/13/1999 10:17:00 AM
From: SteveG	Respond to of 10227

From CSFB's Cynthia M. Motz, CFA NXTL: Announces Plans to Pursue NextWave Spectrum Details of the announcement In a press release distributed on August 11, Nextel announced that it has reached an agreement with both the Department of Justice and the FCC to pursue the spectrum of NextWave Personal Communications, which is currently involved in voluntary bankruptcy proceedings. NextWave's spectrum assets consist of C-block PCS licenses covering 63 Basic Trading Areas (BTAs) and D,E, and F-block licenses covering 32 BTAs. In total, the licenses, which have gone largely unused since they originally awarded to NextWave in the PCS auction two and a half years ago, cover 165 million POPs. Nextel emphasized that its motivation in pursuing these licenses is to pursue new strategic initiatives and deploy " future generations" of wireless services. Nextel believes it can facilitate a reorganization of the NextWave debtors that will be in the best interest of the FCC , NextWave's creditor constituencies and other stakeholders, and the general public. Nextel intends to work with all parties to produce a resolution to the bankruptcy proceedings that would likely be much preferable to continuing to pursue the matter through the bankruptcy and appellate courts. Although Nextel has been in communication with the creditor and equity groups of NextWave regarding its potential role as sponsor of a reorganization, no agreements have been reached at this time. Should an agreement be reached, it would be subject to the normal bankruptcy court plan consideration and confirmation process as well as regulatory approvals. NextWave sought bankruptcy protection in June 1998, after having failed to make required payments to the FCC for its licenses. The proceedings are currently taking place in the United States Bankruptcy Court for the Southern District of New York.

To: SteveG who wrote (9304)	8/13/1999 10:22:00 AM
From: SteveG	Read Replies (1) \| Respond to of 10227

DBAB: NXTL: Bankrupt NextWave Issues No Comment to Nextel's Proposal Deutsche Banc Alex. Brown - US Equities Jeffrey L. Hines,Bo Fifer August 13, 1999 --------------------------------------------------------------------------- ---- NEXTEL COMMUNICATIONS INC. [NXTL] "STRONG BUY" Bankrupt NextWave Issues No Comment to Nextel's Proposal --------------------------------------------------------------------------- ---- Date: 08/13/1999 EPS 1998A 1999E 2000E Price: 53.13 1Q (1.53) (1.66) (0.81) 52-Wk Range: 58 - 15 2Q (1.94) (1.04)A (0.75) Ann Dividend: 0.0 3Q (1.56) (1.07) (0.61) Ann Div Yld: 0.00% 4Q (1.43) (0.96) (0.49) Mkt Cap (mm): 20,933 FY(Dec.) (6.46) (4.73) (2.66) 3-Yr Growth: FY P/EPS NM NM NM CY EPS (6.46) (4.73) (2.66) Est. Changed No CY P/EPS NM NM NM --------------------------------------------------------------------------- ---- Industry: COMMUNICATIONS Shares Outstanding(Mil.): 394.0 Return On Equity (1998) : 0.0% --------------------------------------------------------------------------- ---- HIGHLIGHTS: -- On Thursday (11-Aug) NextWave (a company that recently filed for bankruptcy protection) issued a no comment regarding Nextel's proposed plans to obtain NextWave's wireless licenses. -- NextWave did indicate that it was surprised that "two agencies of the United States government, working in concert, have secretly agreed to lend their respective regulatory and police powers in support of Nextel ..." (which we can only suppose that NextWave is not trying to win any friends in Washington, D.C., but after "defaulting" on close to $5 billion in bids, we suppose they don't have many left to offend). -- NextWave did indicate that it's own proposed plan is scheduled for a confirmation hearing on 8-Sept-99. Thus, we'd expect to have additional data points regarding Nextel (and NextWave's) efforts to secure this spectrum on or prior to 8-Sept. -- NET-NET: In our opinion, today, NextWave is not a financeable company. The Company is late to the market and has a questionable "carriers carrier" strategy. Moreover, we find it quite appalling that NextWave, which was responsible for bidding up prices in wireless auctions to incredible price levels, can now have the audacity to lay claim to these licenses. The fact that the process has gone this far (to the federal bankruptcy court in New York) we believe should be taken as an insult to any taxpaying American consumer. Nextel, on the other hand, has been one of the most innovative and successful companies in the wireless world. While the current attempt to acquire these licenses is still unclear, the attempt amplifies Nextel's premium position in the arena. Any additional spectrum that Nextel acquires reduces risks, costs and generally causes us to upgrade our forecasts. We also believe that if Nextel is successful in acquiring this and/or other spectrum that investors may place a higher valuation on the stock. -- Stay tuned. Our 12-month price objective, based on our DCF, on NXTL is $70/share and does not factor in any additional spectrum gains by Nextel.