SAN DIEGO , Feb. 5, 2004 (PRIMEZONE) -- Leap Wireless International, Inc., a leading provider of unlimited local wireless communications services, today announced that the U.S. Bankruptcy Court for the Southern District of California in San Diego, California has approved a Bidding Procedures Motion to authorize the sale of 15 MHz of spectrum in the Columbus, Georgia market. As part of its ongoing efforts to maximize value through the sale of excess spectrum, the Leap subsidiary that owns this license, Cricket Licensee (Columbus), Inc., has previously entered into a license acquisition agreement to sell the spectrum to Cingular Wireless, LLC. Leap, which launched its Cricket(r) service in Columbus in June 2001, will retain 15 MHz of spectrum in Columbus, which Leap believes is adequate for its innovative service offerings.
Competing bids will be solicited on the license and submissions must be received no later than 4:00 pm (PST) on Thursday, March 4, 2004. Full details of the bidding procedures are contained in the Bidding Procedures Motion and Order which, along with the Cingular acquisition agreement, can be found under the dates 12/22/2003 and 2/2/2004 in the "Restructuring Overview/Legal Documents/Notices and Motions" section of the Company's Web site, www.leapwireless.com. The proceeds from the sale will remain subject to a security interest in favor of the holders of senior secured vendor debt issued by Cricket Communications, Inc.
About Leap
Leap, headquartered in San Diego, Calif., is a customer-focused company providing innovative communications services for the mass market. Leap pioneered the Cricket Comfortable Wireless(r) service that lets customers make all of their local calls from within their local calling area and receive calls from anywhere for one low, flat rate. For more information, please visit www.leapwireless.com
Except for the historical information contained herein, this news release contains "forward-looking statements" reflecting management's current forecast of certain aspects of Leap's future. Some forward-looking statements can be identified by forward-looking words such as "believe," "think," "may," "could," "will," "estimate," "continue," "anticipate," "intend," "seek," "plan," "expect," "should," "would" and similar expressions. This news release is based on current information, which we have assessed but which by its nature is dynamic and subject to rapid and even abrupt changes. Our actual results could differ materially from those stated or implied by such forward-looking statements due to risks and uncertainties associated with our business. Factors that could cause actual results to differ include, but are not limited to:
- our ability to obtain approval from the Federal Communications
Commission (FCC) for the change of control of wireless licenses
that will occur upon our emergence from bankruptcy; and our
ability to successfully implement our plan of reorganization
which has been confirmed by the Bankruptcy Court;
- our ability to continue as a going concern;
- our ability to obtain Bankruptcy Court approval with respect to
motions prosecuted by us in our Chapter 11 cases from time to
time;
- risks associated with third parties seeking and obtaining
Bankruptcy Court approval to convert the Chapter 11 cases of
Leap, Cricket and substantially all of their subsidiaries to
Chapter 7 cases if our plan of reorganization does not become
effective in a timely fashion;
- our ability to maintain contracts that are critical to our
operations;
- our ability to obtain and maintain normal terms with third-party
vendors and service providers;
- the potential adverse impacts of the Chapter 11 cases on the
liquidity or results of operations of Leap and Cricket;
- our ability to attract and retain customers in an extremely
competitive marketplace;
- our ability to attract, motivate and/or retain an experienced
workforce;
- our Chapter 11 filings, coupled with the highly competitive
marketplace and the uncertainties surrounding the effects of
number portability (which allows telecommunications customers to
maintain their existing telephone number when switching to
another telecommunications provider), which have adversely
affected our ability to predict future customer growth and other
key operating metrics;
- changes in economic conditions that could adversely affect the
market for wireless services;
- the acceptance of our product offering by our prospective
customers;
- the non-performance of third-party vendors and service providers
who provide us with goods and services necessary for the
operation of our business;
- the effects of actions beyond our control in our distribution
network;
- rulings or actions by courts or the FCC adversely affecting our
rights to own and/or operate certain wireless licenses, or
changes in our ownership that could adversely affect our status
as an "entrepreneur" under FCC rules and regulations;
- our ability to maintain our cost, market penetration and pricing
structure in the face of competition;
- the failure of network systems to perform according to
expectations;
- global political unrest, including the threat or occurrence of
war or acts of terrorism; and,
- other factors detailed in the section entitled "Risk Factors"
included in our Quarterly Report on Form 10-Q for the fiscal
quarter ended September 30, 2003 and in our other SEC filings.
The forward-looking statements should be considered in the context of these risk factors. Investors and prospective investors are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Leap and the Leap logo design are trademarks of Leap Wireless International, Inc. Cricket and Comfortable Wireless are registered trademarks of Cricket Communications, Inc.