OKLAHOMA CITY and ATLANTA, Oct. 13, 2003 (PRIMEZONE) -- Dobson Communications Corporation (Nasdaq:DCEL) and Cingular Wireless, a joint venture of SBC Communications (NYSE:SBC) and BellSouth (NYSE:BLS), today announced the signing of a definitive agreement to exchange Dobson's ownership in its Eastern Shore of Maryland cellular property (Maryland RSA 2) for Cingular's ownership in its Northwest Michigan cellular property (Michigan RSA 5).
As part of the proposed transaction, Cingular will pay Dobson $23 million and transfer to Dobson its one-percent ownership interests in Texas RSA 2 and Oklahoma RSAs 5 and 7. Dobson is the majority owner of these three markets. The companies expect to complete the transaction in the first quarter of 2004.
The companies have also agreed to assist one another in building out GSM/GPRS technology in Maryland RSA 2 and Michigan RSA 5. The details of the build-out plans for the two markets are expected to be finalized within 30 days.
The Maryland property covers a population of approximately 471,700, including the cities of Ocean City, Salisbury, Easton and Cambridge. The Michigan property covers a population of 169,400, including the cities of Cadillac, Manistee, and Ludington. The exchange will result in a net loss of approximately 17,000 subscribers for Dobson.
"Maryland's Eastern Shore is a key market for Cingular," said Mark Feidler, chief operating officer of Cingular Wireless. "This will enhance our service for existing customers throughout the Maryland and DC markets, and make Cingular available to an entirely new set of potential customers. The transaction is also another key step for Cingular to reduce its roaming costs."
Dobson currently manages the Michigan property for Cingular. The Company stated that a majority of total revenue in Maryland RSA 2 has been derived from roaming, while total revenue in Michigan RSA 5 is comprised primarily of local service revenue. Dobson said that the exchange of properties will not have a material impact on its operating earnings or capital expenditure expectations for 2004.
"This transaction expands our Michigan footprint with an attractive market that is adjacent to Michigan RSA 3, which we already own, and it should enable us to enhance the profitability of our local service business," said Everett Dobson, chairman, chief executive officer and president of Dobson Communications. The Company also owns Michigan RSAs 1 and 10.
The agreement is subject to regulatory approvals and other customary closing conditions.
About Cingular Wireless
Cingular Wireless, a joint venture between SBC Communications (NYSE:SBC) and BellSouth (NYSE:BLS), serves more than 23 million voice and data customers across the United States. A leader in mobile voice and data communications, Cingular is the only U.S. wireless carrier to offer Rollover(tm), the wireless plan that lets customers keep their unused monthly minutes. Cingular has launched the world's first commercial deployment of wireless services using Enhanced Data for Global Evolution (EDGE) technology. Cingular provides cellular/PCS service in 43 of the top 50 markets nationwide, and provides corporate e-mail and other advanced data services through its GPRS, EDGE and Mobitex packet data networks. Details of the company are available at www.cingular.com.
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 11.1 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, regulatory approval for the proposed exchange of markets. 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.