AirTouch joins new Japanese cellular company in Hokuriku; AirTouch's Japanese ventures will reach over 115 million people.

SAN FRANCISCO--(BUSINESS WIRE)--Aug. 31, 1995--Expanding its footprint in the fast-growing Japanese cellular market, AirTouch Communications (NYSE:ATI) has joined a new company being formed to provide cellular service in Hokuriku, a region with about three million people.

AirTouch International will own a 4.5% interest in Digital TU-KA Hokuriku Co., Ltd. The new company, which will be based in Kanazawa City, plans to build a 1.5 GHz digital cellular system that will use the Japanese Digital Cellular (JDC) technical standard. The network is expected to start service in 1997.

This new company is AirTouch's eighth venture in Japan. AirTouch International holds a 15% share in Tokyo Digital Phone and 13% interests in Kansai Digital Phone (based in Osaka) and Central Japan Digital Phone (based in Nagoya). These three companies, which began commercial service in 1994, grew nearly 50% during the second quarter of 1995, and now serve a total of more than 500,000 customers.

AirTouch also owns 4.5% interests in four cellular companies that will offer service in the Kyushu, Chugoku, Tohoku, and Hokkaido areas.

"We continue to increase our holdings in this promising market so we can meet the strong demand for wireless services," said Arun Sarin, president and chief executive officer of AirTouch International. "By expanding our cellular networks throughout Japan, we'll be able to offer continuous service to customers as they travel nationwide."

Sarin noted that, through its partnerships, AirTouch is the largest American cellular operator in Japan and has been integrally involved in designing and building the networks for the Digital Phone Group companies in Tokyo, Osaka, and Nagoya.

Digital TU-KA Hokuriku includes partners from two separate groups that have established cellular ventures in Japan: the TU-KA Phone Group and the Digital Phone Group. The other major partners in Hokuriku and their ownership interests are: Japan Telecom (24%), Nissan Motor Co. (24%), Hitachi, Ltd. (5.5%), West Japan Railway Co. (5.5%), Nippon Steel Corp. (5%), Toyota Motor Corp. (5%), and GTE Mobile Communications International (4.5%). The company has a total of 43 shareholders.

Through its eight Japanese cellular ventures, AirTouch will serve regions with over 115 million people, or more than 90% of the Japanese population. The country's cellular penetration rate is over 4%, compared with roughly 10% in the United States.

AirTouch Communications is a global wireless communications company, with interests in cellular, paging, personal communications services, the Globalstar satellite system, and other operations in the United States and 11 other nations: Belgium, Canada, France, Germany, Italy, Japan, Portugal, South Korea, Spain, Sweden, and Thailand. The company, which is based in San Francisco, serves over 4.2 million customers worldwide.

CONTACT: AirTouch Communications

Susan Rosenberg, 510/210-3910