OKLAHOMA CITY, June 24, 2005 (PRIMEZONE) -- Dobson Communications Corporation (Nasdaq:DCEL) today announced that it will not declare or pay the cash dividend due on July 15, 2005 on its outstanding 12 1/4% Senior Exchangeable Preferred Stock or the August 1, 2005 cash dividend on its outstanding 13% Senior Exchangeable Preferred Stock. Unpaid dividends will accrue interest at the stated dividend rates, compounded quarterly.
This is the fourth quarterly deferral on dividends for the 12 1/4% and 13% Senior Exchangeable Preferred Stocks. Holders of each of these two classes of preferred stock separately will have the right to elect two new directors to Dobson's board of directors effective July 15, 2005 and August 1, 2005, respectively. Dobson previously deferred two semi-annual dividends on its Series F Convertible Preferred Stock. As a result, effective April 16, 2005, holders of that series have the right to elect two new directors to Dobson's board of directors, although they have not done so to date.
The board of directors currently consists of seven members, five of which directors are independent as defined by NASDAQ.
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. For additional information on the Company and its operations, please visit its Web site at www.dobson.net.