American Cellular Corporation Reports Results for Quarter Ended March 31, 1999.

SCHAUMBURG, Ill.--(BUSINESS WIRE)--May 17, 1999--

American Cellular Corporation, one of the largest independent rural cellular telephone system operators in the United States, ended the first quarter of 1999 with approximately 352,300 subscribers, a net increase of approximately 17,800 subscribers for the period compared to 14,000 subscribers added in the same period in 1998, excluding 11,600 units acquired in the Tennessee 4 RSA acquisition completed in January 1998. Market penetration increased 0.36% in 1999, ending the quarter at 7.20%. The Company's churn rate was 1.76% for the period.

Financial Highlights

On June 25, 1998, American Cellular acquired the operations of PriCellular Corporation. The financial highlights for the three months ended March 31, 1998 include the pro forma combined results of American Cellular and PriCellular Corporation.

                          Three Months Ended

                                           3/31/99        3/31/98
                                            (in thousands, except
                                                 subscribers)

Operating Revenue                            $ 57,638        $ 42,635
Operating Expenses                             26,344          22,001
                                               ------          ------
EBITDA before non-recurring
   charges and other income and
   (expense)                                   31,294          20,634
Non-recurring charges                             ---         (2,389)
Other income                                       67             812
Interest expense, net                        (25,479)        (17,821)
Depreciation and amortization                (23,485)         (8,532)
Income tax provision                             (41)            (13)
                                                 ----            ----
Net loss                                     (17,644)         (7,309)
                                             ========         =======

Net subscribers added through
     internal growth                           17,800          14,000
Ending subscribers in service                 352,300         269,300
Capital expenditures                         $ 10,610        $ 11,459

Revenues increased from $42.6 million in 1998 to $57.6 million in 1999. The increase represents the continuing growth in the cellular industry impacting both subscriber and roaming revenues, and the effect of improved coverage in the Company's markets as a result of the increase in the number of cell sites in its systems.

Operating expenses increased from $22.0 million in 1998 to $26.3 million in 1999. The primary factor contributing to the increase in expenses is the growth in the Company's subscriber base and the increase in cellular service minutes provided. Cost of cellular service represents 9.2% of revenue in 1999 compared to 10.8% for the same period in 1998. Selling, general and administrative expense decreased as a percent of total revenue from 34.7% for the three months ended March 31, 1998 to 30.2% for the current three-month period. These decreases reflect the Company's ability to lever fixed expenses over the increasing revenue base. Non-recurring charges in 1998 related to the acquisition of PriCellular by the Company. The increase in depreciation and amortization expense reflects the acquisition of PriCellular by the Company.

The increase in net interest expense from $17.8 million for the three months ended March 31, 1998 to $25.5 million in 1999 is primarily the result of the acquisition of PriCellular by the Company and the related financing. Other income decreased from $812,000 to $68,000 principally due to amortization of a covenant not to compete that was fully amortized in 1998.

The provision for income taxes in 1999 relates to current state income tax requirements.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 Statements made herein that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from the forward-looking statements for many reasons, including those risk factors set forth in American Cellular Corporation's Registration Statement on Form S-4.

CONFERENCE CALL WITH MANAGEMENT TO DISCUSS RESULTS

Friday, May 21, 1999 at 12:00 PM EDT: 1-800-967-7184 Tape Replay (for 72 hours) 1-888-203-1112 Confirmation No. 694759