Denver and Pittsburgh in the queue...
Wednesday January 12, 7:31 am Eastern Time
Company Press Release
SOURCE: Leap Wireless International, Inc.
Leap Wireless International to Acquire Operating Licenses In Denver, Pittsburgh
- Markets Represent Significant Opportunity for Unique Cricket Service -
SAN DIEGO, Jan. 12 /PRNewswire/ -- Wireless communications carrier Leap Wireless International, Inc. (Nasdaq: LWIN - news) today announced that it has reached a definitive agreement to acquire PCS operating licenses in Denver, Colo. and Pittsburgh, Pa. for an undisclosed amount. At closing, the acquisition will add approximately five million POPs (potential customers) to Leap's holdings for use by its domestic subsidiary, Cricket Communications, Inc. With this new agreement, Leap now has licenses or rights to acquire licenses to offer the unique Cricket service to approximately 29.2 million potential customers (1998 POPs) in markets across the country. Cricket seeks to make wireless communications accessible to everyone by giving customers the freedom to make all their local calls with a wireless phone from around their metropolitan area for one low, flat rate. The acquisition is subject to certain conditions including approval from the Federal Communications Commission (FCC). This agreement is the definitive agreement contemplated by the memorandum of understanding that Leap announced on December 10, 1999.
''Cricket service is designed to appeal to people who never thought they could afford the luxury of a mobile phone,'' said Susan G. Swenson, president and chief operating officer of Leap and president and CEO of Cricket. ''With a simple, affordable service like Cricket, we believe wireless will become the way people from all walks of life stay in touch throughout their day.''
About Cricket Communications, Inc.
Cricket Communications, Inc., a subsidiary of Leap Wireless International, plans to change the way people communicate by bringing wireless communications to the U.S. mass consumer market. Cricket's service concept, called Comfortable Wireless and the around-town phone, has been operating in Chattanooga, Tenn., since early 1999 using Chase Telecommunications' infrastructure under an agreement that provides that ChaseTel controls the business until Leap's proposed acquisition of ChaseTel is complete. Cricket service lets customers make all their calls in their local service area and receive calls from anywhere for one low, flat rate. Cricket's service also allows customers to make long distance calls by paying for these calls in advance. While roaming is not available, the local service area provides coverage where people live, work, and play.
About Leap Wireless International, Inc.
Leap Wireless International, Inc., headquartered in San Diego, Calif., is a wireless communications carrier that deploys, owns and operates wireless networks in domestic and international markets with strong growth potential. In conjunction with its strategic partners, Leap has launched all-digital wireless service in the United States, Mexico and Chile through its operating companies. Leap 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, please visit www.leapwireless.com.
This news release contains certain ''forward-looking statements,'' including statements regarding the probability and effects of closing the contemplated acquisition, the markets in which Leap expects to offer Cricket service and the appeal of the service. 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,'' ''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 on Form 10-K for the fiscal year ended August 31, 1999 and other documents on file with the Securities and Exchange Commission. Those risk factors include uncertainties relating to costs, profitability and the ability to raise sufficient capital for continued expansion and operation.
Cricket, Comfortable Wireless and around-town phone are service marks of Cricket Communications, Inc.
SOURCE: Leap Wireless International, Inc.
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