OKLAHOMA CITY, Dec. 29, 2004 (PRIMEZONE) -- Dobson Communications Corporation (Nasdaq:DCEL), through its operating subsidiary, Dobson Cellular Systems, Inc., announced today that it has acquired the non-license wireless assets of RFB Cellular, Inc. and certain affiliates in Michigan in a sale pursuant to Bankruptcy Code sections 363 and 365.
Dobson will operate under a spectrum lease with RFB pending regulatory approval of the license assignments for the 850 MHz cellular licenses in Michigan 2 and 4 Rural Service Areas (RSAs) and the 1900 MHz PCS licenses in Basic Trading Areas for Alpena, Escanaba, Mt. Pleasant, Petoskey, Saginaw, Sault Ste. Marie, and Traverse City. Dobson's acquisition of the licenses covering the leased spectrum is expected to close in 2005, after FCC approval. The total purchase price for all acquired assets, including FCC licenses, was $29.3 million.
The newly acquired RSAs cover a total population (POPs) of approximately 256,000. Excluding overlap with markets already served by Dobson, the RFB assets add an incremental 185,000 POPs to Dobson service areas in northern Michigan. These markets include Mackinac Island, Interstate 75 from the Straits of Mackinac to the Canadian border, and the cities of Sault Ste. Marie, Escanaba and Manistique. Dobson already served all or portions of Michigan 1, 3, 4, 5, 6, 7 and 10 RSAs, as well as the Muskegon Metropolitan Service Area.
RFB operated both CDMA and analog technologies. Dobson plans to upgrade the RFB network with GSM/GPRS/EDGE technology.
Dobson Cellular Systems will market its products and services throughout northern Michigan under the Cellular One(r) brand.
Dobson acquired approximately 25,900 subscribers, of which more than 90 percent are on postpaid calling plans. Dobson also acquired seven retail stores and 78 cell site locations, of which 40 are leased and 38 are owned.
"This represents further progress in increasing our strategic coverage footprint in Michigan. The acquisition enhances the value of calling plans that we sell in the state and enables us to reduce roaming expenses statewide," said Everett Dobson, chief executive officer and president.
Dobson plans to fund the purchase primarily with cash raised from the recent senior secured notes offering.
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. 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.