SAN DIEGO--(BUSINESS WIRE)--March 15, 2005--Leap Wireless
International, Inc. (OTCBB:LEAP), a leading provider of innovative and
value-driven wireless communications services, today announced that
the Company signed a definitive agreement with Mountain Union Telecom,
LLC (Mountain Union), an owner and operator of communication towers,
for the sale of 142 Leap-owned cell towers and cell tower related
assets to Mountain Union for approximately $18 million.
Under the terms of the agreement, which is expected to close later
this year, Leap will lease-back space at the tower sites under a long
term lease arrangement of $1,500 per site/month, with an initial term
of 10 years. The assets that will be sold or assigned include cell
towers, related tower site equipment and infrastructure, the
underlying lease for the tower site property, and all co-location
leases from other users on the towers being sold. Daniels &
Associates, the Denver-based telecommunications and media mergers &
acquisitions and corporate finance specialist, represented Leap in the
transaction. Finalization of the sale is subject to completion of the
purchaser's due diligence with respect to the specific tower assets
being sold and other conditions customary for a sale of this type.
"We are pleased with the terms of the tower and asset sale/lease
agreement with Mountain Union," stated Doug Hutcheson, Leap's
president and chief executive officer. "At the conclusion of a
thorough review of our business operations, we decided that cell tower
ownership and management of co-location tenants should not be a
primary strategic focus. The sale and lease arrangement with Mountain
Union will enable us to utilize this network infrastructure in the
most efficient and productive manner possible, and improve our cash
position and financial strength. We view this deal as a win for both
parties and their customers."
"This acquisition will create significant strategic value for
Mountain Union as well as enhance the value of our already existing
western region assets," stated David Weisman, Mountain Union's
president and chief executive officer. "We look forward to working
with Leap Wireless as a valued customer on the acquired towers as well
as on future new tower development opportunities which should be of
mutual benefit to both of our Companies."
Headquartered in Alexandria, VA, Mountain Union Telecom, LLC owns,
operates and manages tower sites serving the wireless
telecommunications and broadcasting industries. The company has tower
operations in four geographic clusters within the continental U.S. and
Puerto Rico. Upon closing of the tower acquisition from Leap Wireless,
the Company will own and operate more than 400 communication towers.
Sansome Partners, LLC and Toronto Dominion Capital are equity sponsors
of the Company.
Leap, headquartered in San Diego, Calif., is a customer-focused
company providing innovative mobile wireless services that are
targeted to meet the needs of customers who are under-served by
traditional communications companies. With a commitment to
predictability, simplicity and value as the foundation of our
business, Leap pioneered Cricket(R) service, a simple and affordable
wireless alternative to traditional landline service. Cricket(R)
service offers customers unlimited anytime minutes within the
Cricket(R) calling area over a high-quality, all-digital CDMA network.
Operating in 39 markets in 20 states stretching from New York to
California, Cricket(R) service is available to customers in more than
840 different municipalities. For more information, please visit
Except for the historical information contained herein, this news
release contains "forward-looking statements" reflecting management's
current forecast of certain aspects of Leap's future. Some
forward-looking statements can be identified by forward-looking words
such as "believe," "think," "may," "could," "will," "estimate,"
"continue," "anticipate," "intend," "seek," "plan," "expect,"
"should," "would" and similar expressions. This news release is based
on current information, which we have assessed but which by its nature
is dynamic and subject to rapid and even abrupt changes. Our actual
results could differ materially from those stated or implied by such
forward-looking statements due to risks and uncertainties associated
with our business. Factors that could cause actual results to differ
include, but are not limited to:
-- our ability to attract and retain customers in an extremely
-- our ability to attract, motivate and retain an experienced
-- changes in economic conditions that could adversely affect the
market for wireless services;
-- our ability to successfully acquire additional spectrum;
-- the impact of competitors' initiatives;
-- our ability to successfully execute service expansion plans;
-- failure of network systems to perform according to
-- our ability to comply with the covenants in our senior secured
-- failure of the Federal Communications Commission to approve
the transfers of the licenses covered by our sale agreement
with Verizon Wireless, or to approve the transfers to Cricket
Licensee (Reauction), Inc. or to Alaska Native Broadband 1
License, LLC of the respective licenses for which each entity
was the winning bidder in the FCC's Auction #58;
-- global political unrest, including the threat or occurrence of
war or acts of terrorism; and
-- other factors detailed in the section entitled "Risk Factors"
included in our Quarterly Report on Form 10-Q for the three
months ended September 30, 2004, and in our other SEC filings.
The forward-looking statements should be considered in the context
of these risk factors. Investors and prospective investors are
cautioned not to place undue reliance on such forward-looking
statements. We undertake no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
Leap and the Leap logo design are trademarks of Leap Wireless
International, Inc. Cricket is a registered trademark of Cricket
Communications, Inc. Cricket +1, Cricket +2, Cricket Unlimited,
Cricket Multi Value Plan, Cricket Clicks, and Jump are trademarks of
Cricket Communications, Inc.
CONTACT: Leap Wireless International, Inc.
Kristin Atkins, 858-220-1060 (Media Relations)
Jim Seines, 858-882-6084 (Investor Relations)
Bock Communications, Inc.
Jessica Levy, 714-292-2990 (Media Relations)
SOURCE: Leap Wireless International, Inc.