OKLAHOMA CITY, August 8, 2000 (PRIMEZONE) -- Dobson Communications Corporation (Nasdaq:DCEL) has signed a purchase agreement with Conductus, Inc. (Nasdaq:CDTS) for a minimum of 200 ClearSite(R) superconductor systems to be deployed nationwide over the next two years at Dobson wireless cell sites. As part of the purchase agreement, Dobson has placed an initial order of 50 ClearSite superconductor systems to be delivered in 2000 and early 2001.
"We expect this ClearSite technology to significantly improve the performance of our current digital wireless networks for voice communications. However, it could be even more instrumental as we provide high-speed wireless Internet services in the future," said Tim Duffy, Dobson's chief technical officer and senior vice president of Network Operations and Engineering. "Together with Conductus, we are implementing a leading-edge technology that pushes the envelope not only for the rural wireless industry, but also for the wireless industry worldwide.
"We conducted our own extensive field trials over the past year with major superconductor manufacturers. We feel that ClearSite is the superior solution for significantly expanding our cell site coverage, reducing interference and increasing minutes of use on our network," continued Duffy. "For about 6 percent incremental investment in a typical cell site, ClearSite technology can increase that site's minutes of use by as much as 30 percent, which we expect to have a direct impact on customer service and signal quality.
"In addition, in the future we plan to test Conductus systems at our cell sites as we equip them with 3G capability. This will involve a new high-speed data and Internet access technology for TDMA and CDMA networks," Duffy said. As of July 31, 2000, Dobson has digital voice services available to approximately 98% of its owned or managed POPs. Dobson also installed CDPD (cellular digital packet data) radios in the majority of its owned or managed cell sites during the second quarter, in preparation for the roll-out of new wireless data services in the second half of this year.
"We're pleased to be selected by one of the most technically-advanced wireless carriers," said Charles Shalvoy, president and chief executive officer of Conductus. "Dobson wanted a product solution that addressed both current and future network opportunities. In multiple customer installations over the past year, our high-performance ClearSite systems have demonstrated dramatic improvements in 2G and 3G applications. We look forward to our partnership with Dobson, not only to help improve its 2G networks today, but also to enable higher performance 2.5G and 3G networks, which it plans to operate in the future."
ClearSite superconductor-based filter systems expand coverage, reduce interference, and increase capacity for analog (1G), digital (2G), and next-generation high bandwidth digital (2.5G and 3G) wireless networks. In field trials, ClearSite systems have increased cell site minutes of use and thus revenues by 30% to more than 50% for 1G and 2G networks. In a recent 3G field trial with KDD and Hitachi, the Conductus ClearSite system provided significant improvements in coverage, capacity, bandwidth, handset power and bit error rate, all of which can be drastically degraded due to existing sources of interference in Japan.
Conductus, Inc., founded in 1987 and based in Sunnyvale, California, develops, manufactures and markets electronic components and systems based on superconductors for applications in the worldwide telecommunications markets. For many applications, the unique properties of superconductors offer significant performance advantages over products based on conventional copper electronic components. These advantages can provide improved price/performance at the system level because of enhanced sensitivity and efficiency as well as reduced size and weight. For additional information, please visit its web site at http://www.conductus.com.
Dobson Communications is a leading provider of cellular phone services to rural markets in the United States. Headquartered in Oklahoma City, the rapidly growing Dobson owns or manages wireless operations in 18 states. For the year ended December 31, 1999, Dobson reported total revenues of $359.3 million; EBITDA of $137.9 million; and a net loss of $127.6 million, which included a loss from discontinued operations and extraordinary expense.
For additional information on Dobson and its operations, please visit its web site at 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 the Dobson's and Conductus' 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 discussion of the risk factors that could impact these areas and each company's overall business and financial performance can be found in their reports filed with the Securities and Exchange Commission. Given these concerns, investors and analysts should not place undue reliance on forward-looking statements.