Advanced Radio Telecom announces fourth quarter and annual results.

BELLEVUE, Wash.--(BUSINESS WIRE)--March 10, 1997--Advanced Radio Telecom Corp. (ART or the company)(NASDAQ: ARTT) today announced results for the fourth quarter and year ended Dec. 31, 1996.

Total revenues for the quarter and year ended Dec. 31, 1996 were $2,782,914 and $2,907,927, respectively, compared to $5,793 for each of the same periods in 1995. By year end, ART had installed over 370 radio links (single path point-to-point microwave connections), including approximately 80 revenue generating links operated by the company and approximately 100 radio links installed for and sold to other 38 GHz license holders. Of its total fourth quarter and annual revenues, $2,660,811 represented non-recurring sales and construction revenue associated with radio links installed for others.

Operating costs and expenses were $7,808,063 and $25,725,983 for the quarter and year ended Dec. 31, 1996, respectively, compared to $2,115,876 and $3,118,650 during the same periods in 1995. Included in operating expenses for the fourth quarter of 1996 is $1,590,779 representing costs of sales and construction related to the non-recurring revenue described above. Operating expenses for 1996 include non-cash charges of $8,699,178 which primarily represent compensation expense related to a stock escrow agreement and the value of warrants issued in connection with a strategic marketing agreement. Excluding these non-cash, non-recurring items, operating costs and expenses for the fourth quarter and year ended Dec. 31, 1996 were $6,075,558 and $15,436,026, respectively.

Operating losses for the fourth quarter and year ended Dec. 31, 1996 were $5,025,149 and $22,818,056, respectively, compared to losses of $2,110,083 and $3,112,857 for the same periods in the prior year. The net loss for the quarter ended Dec. 31, 1996 was $10,291,926 or $0.92 per weighted average common share and for the year $30,670,303 or $3.97 per weighted average common share. Included in the computation of net loss for the quarter were $3,687,644 of costs related to an unused Bridge Note commitment and an extraordinary item of $1,339,996 related to the early repayment of debt.

Vernon L. Fotheringham, chairman and chief executive officer stated, "1996 was a year filled with accomplishment and excitement at ART. We achieved a number of key milestones in the areas of financing and acquisitions of 38 GHz spectrum. In addition, we built an internal infrastructure which established ART as a premier quality service provider in the eyes of our most discerning customers: other telecommunications carriers."

"Much of 1996 was devoted to bringing on outstanding people and developing internal systems which allow us to deploy microwave radio links rapidly and efficiently. For example, our comprehensive Network Operations Center allows us to do more than just monitor each link in our network; it allows us to measure the performance characteristics of each radio in real time."

Fotheringham added, "We currently have master service agreements with 11 carriers and trial service agreements or test links installed with numerous other carriers. ART is proactively designing networks targeting major buildings which are "off-network" to these carrier customers in approximately 15 selected markets. As part of this proactive design, ART is engaged in aggressive site acquisition activity for major facilities which will become hub sites in our network and allow us to extend our customers' networks to buildings they do not currently reach."

"On the financing front, the company raised approximately $35 million in its initial public offering of Common Stock on Nov. 12, 1996. On Feb. 6, 1997, ART sold $135 million of Senior Notes in a public offering. The proceeds from these two offerings are expected to provide the company with sufficient funds to execute its business plan into 1998. Finally, in Feb. 1997, ART completed two significant acquisitions of 38 GHz spectrum. ART now owns and manages sufficient spectrum to provide services in 169 major U.S. markets covering approximately 156 million people. This substantial footprint is especially important given our carriers' carrier focus as it allows our customers to deal with a single source in most of their markets."

Certain statements contained in this release relating to our strategies, operating efficiencies, interest in our services and sufficiency of capital are forward-looking statements that involve risks and uncertainties. These risks include, among others, ART's limited operating history, the uncertain acceptance of its services, competitive factors and uncertainties of capital needs. Additional information concerning these and other factors that could affect the company and its financial results are contained in the company's Registration Statement, as amended, No. 333-19295 filed with the Securities and Exchange Commission.

ART is a nationwide telecommunications company providing rapidly deployable, highly reliable, wireless broadband local telecommunications services, which extend the reach of fiber optic and other telecommunications networks. ART is addressing the growing demand for high-capacity, high-speed digital telecommunications services for business and government customers who require cost-effective, high bandwidth local access to voice, video, data, and Internet services. ART is headquartered at 500-108th Avenue NE, Suite 2600, Bellevue, WA 98004, telephone: [phone]; fax: [phone]. ART's home page on the worldwide web can be viewed at http://www.artelecom.com -0-

                     Advanced Radio Telecom Corp.
                Consolidated Statement of Operations
                For the Three Months Ended December 31,
                           (unaudited)

                                             1996        1995

REVENUES:

Service revenue                        $    122,103 $     5,793
Equipment sales and construction revenue  2,660,811          --
          Total revenue                   2,782,914       5,793


COSTS and EXPENSES:

Technical and network operations          1,597,490          --
Cost of equipment sales and construction  1,590,779          --
Sales and marketing                       1,656,102     191,693
General and administrative                2,355,058   1,923,906
Research and development                    114,458          --
Depreciation and amortization               494,176         277
        Total operating costs and
         expenses                         7,808,063   2,115,876

Operating loss                           (5,025,149) (2,110,083)

Interest expense                            298,546     130,001
Financing commitment expense              3,687,644          --
Interest income                             (59,409)     (9,554)

Loss before extraordinary item           (8,951,930) (2,230,530)

Extraordinary loss on early
 repayment of debt                        1,339,996          --

Net loss                               $(10,291,926)$(2,230,530)

Net loss per common share:
        Net loss before extraordinary item  ($0.80)     ($0.34)
        Extraordinary loss                   (0.12)         --
Net loss per common share                   ($0.92)     ($0.34)

Weighted average common shares           11,129,142   6,627,905

NOTE:  As of March 6, 1997, the total number of common shares
outstanding was 19,559,420.  Additionally the company has 4,602,324
common shares issuable under options and warrants.


                   Advanced Radio Telecom Corp.
               Consolidated Statement of Operations
                  For the Year Ended December 31,
                           (unaudited)


                                                 1996      1995

REVENUES:

Service revenue                            $    247,116 $     5,793
Equipment sales and construction revenue      2,660,811       -
   Total revenue                              2,907,927       5,793


COSTS and EXPENSES:

Technical and network operations              3,402,948       -
Cost of equipment sales and construction      1,590,779       -
Sales and marketing                           5,548,584     191,693
General and administrative                   12,896,134   2,911,273
Research and development                      1,269,579       -
Depreciation and amortization                 1,017,959      15,684
   Total operating costs and expenses        25,725,983   3,118,650

Operating loss                              (22,818,056) (3,112,857)

Interest expense                              1,695,489     131,540
Financing commitment expense                  3,687,644      -
Unsuccessful offering costs                   1,248,000      -
Interest income                                (118,882)     (9,554)

Loss before extraordinary item              (29,330,307) (3,234,843)

Extraordinary loss on early repayment of debt 1,339,996     -

Net loss                                   $(30,670,303)$(3,234,843)


Net loss per common share:
  Net loss before extraordinary item             ($3.80)     ($0.54)
  Extraordinary loss                              (0.17)     -
Net loss per common share                        ($3.97)     ($0.54)

Weighted average common shares                7,717,755   5,946,338


                      Advanced Radio Telecom Corp.
                 Condensed Consolidated Balance Sheet
                          As of December 31,
                             (unaudited)


                                               1996         1995
                             ASSETS

Current assets                            $  3,990,791  $  685,979
Property and equipment, net                 19,303,849   3,581,561
FCC licenses, net                            4,330,906   4,235,734
Other assets                                 9,023,155   1,373,285
     Total assets                         $ 36,648,701 $ 9,876,559

                    LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities                       $ 13,614,696 $ 3,694,489
Long term debt, net of current portion       3,084,085   6,450,000
     Total liabilities                      16,698,781  10,144,489
Redeemable preferred stock                                  44,930
Stockholders' equity (deficit)              19,949,920    (312,860)
     Total liabilities and
      stockholders' equity                $  36,648,701 $ 9,876,559

CONTACT: Advanced Radio Telecom (ART)

Lori Lawrenson, 206/990-1620

Thomas A. Grina, 206/990-1629

David Chandler, 206/990-1625