OKLAHOMA CITY, Okla., Nov. 1, 2001 (PRIMEZONE) -- Dobson Communications (Nasdaq:DCEL) and Verizon Wireless (NYSE:VZ) announced today the signing of definitive agreements under which, Dobson will sell four operations in California, Georgia, Ohio and Tennessee to Verizon Wireless for approximately $465 million, which includes $202 million for Tennessee Rural Service Area (RSA) #4. TN RSA #4 is the property of a joint venture that is equally owned by Dobson and AT&T Wireless (NYSE: AWE).
Additional terms were not disclosed. Total population (POPS) served by the four properties is approximately 950,000. The sales are expected to close in the first quarter of 2002. Dobson said it intends to use its share of the net proceeds from the sales to reduce debt.
Negotiations concerning these markets were previously announced on Sept. 17, 2001. The sale of Dobson's 75 percent partnership interest in Arizona RSA #5 is still being negotiated.
The following wireless properties are involved in the transaction:
--California RSA #7 includes Imperial County, serving Brawley, Calexico, Calipatria and Imperial. POPS served by the license total approximately 147,000. --Georgia RSA #1 includes eight counties in Northern Georgia, including Fannin, Gilmer, Gordon, Murray, Pickens, Towns, Union, and Whitfield. POPS served by the license total approximately 250,000. --Ohio RSA #2 includes four counties in northern Ohio: Erie, Huron, Sandusky and Seneca. POPS served by the license total approximately 260,000. --Tennessee RSA #4 includes six counties in Eastern Tennessee: Cocke, Grainger, Greene, Hamblen, Jefferson and Sevier. POPS served by the business total some 290,000.
The fifth agreement still being negotiated involves Arizona RSA #5, which includes Gila and Pinal counties, AZ. POPS served by the license total about 200,000.
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 or manages wireless operations in 19 states. Dobson has expanded rapidly in recent years through internal growth and by acquisition. For additional information on the Company and its operations, please visit its Website at www.dobson.net
About Verizon Wireless
Verizon Wireless is the largest wireless communications provider in the U.S. with more than 28 million wireless voice and data customers. The coast-to-coast wireless provider was formed by the combination of the U.S. wireless businesses of Verizon Communications and Vodafone (NYSE:VOD) (LSE:VOD), including Bell Atlantic Mobile, AirTouch Cellular, GTE Wireless and PrimeCo Personal Communications. Verizon Wireless has a footprint covering more than 90 percent of the U.S. population, 49 of the top 50 and 97 of the top 100 U.S. markets. The company, headquartered in Bedminster, NJ, is 40,000 employees strong. Reporters and editors can find more information about the company on the Web at http://www.verizonwireless.com.