Centennial/AT&T/VZW Spectrum Announcement

[jayc]

Centennial Communications Exercises Options to Purchase Spectrum in Contiguous Markets
Tuesday August 3, 5:25 pm ET


WALL, N.J.--(BUSINESS WIRE)--Aug. 3, 2004--Centennial Communications Corp. (the "Company") (Nasdaq: CYCL - News) today announced that it has exercised its option to purchase 10 MHz of spectrum from AT&T Wireless covering an aggregate of approximately 4.1 million population equivalents (POPs) contiguous to its existing properties in Michigan and Indiana. The aggregate exercise price of the spectrum is approximately $19.5 million.
In addition, the Company announced today that is has entered into a definitive agreement to sell the Indianapolis and Lafayette, Indiana licenses that it will acquire from AT&T Wireless to Verizon Wireless for $24 million in cash. Pro forma for these transactions, Centennial will acquire an incremental approximately 2.2 million POPs and receive approximately $4.5 million in cash. Both transactions are subject to customary closing conditions, including regulatory approvals, and are expected to close before calendar year-end 2004.

A complete list of the licenses Centennial will acquire is as follows:

BTA Market PCS Block MHz
--- ------ --------- ---
15 Anderson, IN* E 10
115 Lansing, MI* A3 10
169 Grand Rapids, MI* A3 10
204 Indianapolis, IN** F 10
235 Lafayette, IN** F 10
309 Muncie, IN* E 10
310 Muskegan, MI A3 10
390 Saginaw-Bay City, MI A3 10

*Indicates partitioned BTA.
**Indicates markets being sold to Verizon Wireless.

A map showing the location of the licenses being acquired and Centennial's existing footprint is available at www.centennialwireless.com, click on Investor Relations, then Presentations.

The Company anticipates launching the Grand Rapids and Lansing, Michigan markets with GSM/GPRS technology by the end of calendar year 2005. These markets represent approximately 1.4 million POPs and bridge the gap in Centennial's Midwest cluster. There are no immediate plans to build-out the additional licenses. Centennial expects that start up adjusted operating income losses and capital expenditures relating to the new build will be approximately $10 million and $35 million, respectively, over the next two years.

"This measured expansion substantially improves our footprint and competitive position in our Midwest cluster because many people in our existing territory travel regularly to Grand Rapids and Lansing. This new territory is an attractive growth opportunity in its own right and it enables us to better market our services to more of our existing footprint," said Michael J. Small, chief executive officer. "It represents the natural evolution of our successful efforts to improve our retail margins in a fashion that positions us for future growth."

[bobolito]

Cingular/AT&T spectrum aggregation changes:

BTA_____Market_________Current Mhz_____Minus 10MHz

15____Anderson, IN____________50/75_________40/65

241*__Lansing, MI______________50_____________40

169___Grand Rapids, MI_________30_____________20 (They are shooting themselves in the foot here by selling this.)

204___Indianapolis, IN__________75_____________65

235___Lafayette, IN____________65/40__________55/30

309___Muncie, IN______________50/75__________40/65

310___Muskegan, MI____________30_____________20 (Again, why are they doing this to themselves?)

390___Saginaw-Bay City, MI______40_____________30



*The article specifies Lansing, MI is BTA 115. This is wrong. The correct BTA number is 241.

In areas where two Mhz numbers are shown is because there's a 850Mhz license overlapping in some areas of the PCS license.

[jayc]

Interesting... thanks