Omnipoint and Siemens Announce $200 Million Arrangement
PR Newswire - December 22, 1998 07:20
CEDAR KNOLLS, N.J., DEC. 22 /PRNewswire/ -- Personal Communications Services (PCS) provider Omnipoint Communications (NASDAQ: OMPT) and telecommunications equipment manufacturer Siemens Information and Communication Networks, Inc. jointly announced today that they have signed a letter of intent for a supply arrangement and for financing of $200 million.
The arrangement includes vendor financing of equipment and services for expansion of the company's wireless telephone network during the year, as well as resources for general corporate purposes. The deal provides for additional purchases and financing thereafter -- bringing the potential total to more than $350 million in purchases and associated financing over several years.
For its part, Omnipoint will use Siemens' D1900 system, including high capacity switches, base stations and Siemens' Intelligent Network product INXpress to expand the New York region and to build out other markets.
"We are delighted to have Siemens as one of our primary infrastructure providers," said Omnipoint President George Schmitt. "Bringing in this major equipment manufacturer will strengthen competition and help us keep costs low. This agreement will allow us to develop a strategic relationship with one of the global leaders in wireless equipment. Given Siemens' product performance worldwide, we are pleased to have them as a strong partner to further expand our PCS operations."
"Omnipoint Communications is a major PCS player and we look forward to working with them to further their success," said Thorsten Heins, head of the wireless division for Siemens Information and Communication Networks, Inc. "This deal will add to Siemens' goal of building a major wireless presence in the United States, and create a powerful, winning combination."
The agreement -- which is subject to final board approvals of both parties -- is scheduled to take effect in early 1999.
Omnipoint Communications is a subsidiary of Omnipoint Corporation. Founded in 1987, the parent company is a leader in commercializing PCS. Omnipoint currently provides advanced wireless communications services in much of New York, New Jersey, Connecticut, Eastern Pennsylvania, Delaware, Massachusetts, New Hampshire, Rhode Island and Southern Florida; it intends to provide those services in additional areas. The company also develops technology and equipment for PCS and wireless local loop. The company's stock is traded on the NASDAQ National Market. Its trading symbol is OMPT.
Omnipoint is a founding member of the North American GSM Alliance, a group of North America's leading digital wireless PCS companies. Using GSM (Global System for Mobile) communications technology, Alliance companies provide superior voice clarity, unparalleled security and leading-edge wireless voice, data and fax features for customers, whether at home, away or abroad. Other GSM Alliance members include: Aerial Communications, Inc.; Airadigm Communications, Inc.; BellSouth Mobility DCS; Conestoga Wireless Company; Cook Inlet PCS; DIGIPH PCS; Microcell Telecommunications Inc.; NPI Wireless; Pacific Bell Wireless; Powertel, Inc.; Western Wireless Corp.; and Wireless 2000 PCS. There are more than 130 million GSM subscribers in 120 countries worldwide, including nearly three million in North America.
Siemens, also a vendor member of the GSM Alliance, is a complete provider of PCS/GSM systems and supplies all system components including Intelligent Network solutions. Being one of the world's leading manufacturers of PCS/GSM systems, Siemens has already equipped more than 110 networks in over 62 countries with GSM technology.
Siemens offers wireless communication systems for the entire spectrum of the North American Personal Communications Services (1900 MHz) marketed under the D1900 GSM Mobile System brand family. The D1900 product line includes a range of radio cell and network control systems that provide long range, high mobility and large capacity in any desired combination. Also included are microcell systems that are used within buildings, malls, or office campuses to allow service within high-density communities
Siemens Information and Communication Networks is a leading provider of information and tele-communications solutions to public network service providers and enterprise customers in North America. The company is a subsidiary of Siemens AG, a global business with $64 billion in sales in the fiscal year ended September 1997. INXpress is a trademark of Siemens AG. Home page: www.icn.siemens.com.
Except for historical information contained herein, the matters discussed and the statements made in this release concerning Omnipoint's future prospects are "forward-looking statements" under the Federal securities laws that involve risks and uncertainties. There can be no assurance that future results will be achieved, and actual results could differ materially from the forecast and estimates. Important factors that could cause actual results to differ materially include, but are not limited to, Omnipoint's limited operating history, including a history of losses and the uncertainty of future operating results, dependence upon cash flow from its subsidiaries, high leverage, debt service requirements and restrictive covenants related to its outstanding Senior Notes, the emerging market for PCS service, the continued buildout of Omnipoint PCS markets, significant capital requirements, and its dependence upon key employees. Omnipoint's future results may be impacted by other risk factors listed in its Registration Statement filed on Form S-3 on June 30, 1998, and other factors listed from time to time in its SEC reports, including, but not limited to, the report on Form 10-K for the year ended December 31, 1997.
SOURCE Omnipoint Corporation
/CONTACT: Laura Knight, Investor Relations, 301-951-2517, or
lknight@omnipoint-corp.com, or Ellen Webner, Media Relations, 973-290-2474, or
ewebner@omnipoint-pcs.com, both of Omnipoint Corporation; or Robert
Bartolotta, Public relations, of Siemens Information and Communication
Networks, Inc., 561-955-3140, or robert.bartolotta@icn.siemens.com/
/Web site: www.icn.siemens.com |
