OKLAHOMA CITY, June 16, 2004 (PRIMEZONE) -- Dobson Communications Corporation (Nasdaq:DCEL), through its operating subsidiary, Dobson Cellular Systems, Inc., has completed the acquisition of the assets of NPI-Omnipoint Wireless, LLC ("NPI"), which provides GSM wireless service to markets in northern Michigan, for a cash purchase price of approximately $28 million.
NPI owns markets with a total population (POPs) of 1.2 million, with a built-out GSM network that currently covers approximately 1.0 million POPs. NPI has approximately 35,000 subscribers in Michigan, and, of these, approximately 23,900 are on postpaid calling plans and approximately 11,100 are on prepaid calling plans. NPI's network infrastructure includes 372 cell sites, of which 100 are company-owned.
NPI's 1900 MHz wireless licenses include several Basic Trading Areas (BTAs) in northern Michigan, which extend north from Grand Rapids and Saginaw to the Canadian border and are bordered on the east and west by Lake Huron and Lake Michigan.
Dobson currently serves Michigan Rural Service Areas 1, 3, 5 and 10 in the northern part of the state, including Ludington, Traverse City and Petoskey. In these areas, it operates on the 850 MHz frequency.
The addition of NPI's markets will broaden Dobson's market coverage in northern Michigan by an additional 650,000 POPs, including Muskegon and Grand Haven in the south; the Interstate 75 corridor from Sault Ste. Marie south almost to Saginaw, which is the major north-south thoroughfare in Northern Michigan; Mackinac Island; and cities in the central and eastern part of the state such as Gaylord, Mt. Pleasant, Alpena and Tawas City. Dobson plans to expand the coverage and upgrade the quality of its Northern Michigan network, including the addition of GPRS data service functionality.
About Dobson Communications
Dobson Communications is a leading provider of wireless phone services to rural markets in the United States. Headquartered in Oklahoma City, the Company owns wireless operations in 16 states, with markets covering a population of 11.4 million. The Company serves 1.6 million customers. For additional information on the Company and its operations, please visit its Web site at http://www.dobson.net.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These include, but are not limited to, statements regarding Dobson's plans, intentions and expectations. Such statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, but are not limited to, gaining regulatory approval for its acquisition of NPI properties in Michigan. A more extensive discussion of the risk factors that could impact these areas and Dobson's overall business and financial performance can be found in Dobson's reports filed with the Securities and Exchange Commission. Given these concerns, investors and analysts should not place undue reliance on forward-looking statements.