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CENCALL COMMUNICATIONS AGREES TO PURCHASE MOTOROLA SMR PROPERTIES IN 17 STATES

 DENVER, Oct. 22 /PRNewswire/ -- CenCall Communications Inc. (NASDAQ: CCAL) announced today that it has signed an agreement in principle with Motorola Inc. to purchase Motorola's 800 megahertz (MHz) specialized mobile radio (SMR) businesses, systems and licenses in its area of operations.
 CenCall, which now operates or has agreements in principle to acquire radio dispatch services in Colorado, Washington, Oregon, Idaho, Oklahoma, Kansas, Missouri, Wyoming, Minnesota, Arizona and New Mexico, will be assigned Motorola's frequencies in these states. In addition, CenCall will also be assigned Motorola's SMR assets in North and South Dakota, Montana, Iowa, Nebraska and southern Illinois.
 Under the terms of the agreement, Motorola will receive 11.5 million shares of CenCall stock for the Motorola SMR assets.
 CenCall has also agreed to sell to Motorola for $12.5 million a warrant to purchase 4 million additional shares of common stock at an exercise price of $64 per share for the first year, $65 in the second year, $75 in the third year, $85 in the fourth year and $95 in the fifth year.
 In the agreement, the companies said they would discuss a plan for the orderly migration of existing analog dispatch customers to digital service. Also included in the agreement are equipment and technology provisions whereby CenCall will agree to use Motorola MIRS infrastructure and subscriber equipment to construct and operate MIRS systems for specialized mobile radio and digital mobile phone systems. By a mutually acceptable date, Motorola will complete necessary steps to establish acceptable, alternative sources of MIRS equipment.
 Stephen W. Schovee, chief executive officer of CenCall, said, "We are delighted to have Motorola as a significant investor and technology partner in our business. CenCall is now positioned to provide a wide range of integrated wireless communications services over a 17-state area encompassing 42 million people."
 "The purchase of the Motorola assets together with our agreement in principle to acquire Nextel's SMR assets in Washington, Oregon, Colorado, Arizona and Minnesota announced earlier this week are important steps forward, both for CenCall and for the development of an integrated enhanced specialized mobile radio network in the United States," added Justin Jaschke, president of CenCall.
 The agreement is subject to regulatory, board and CenCall shareholder approvals and will be finalized at a later date.
 CenCall is a leading provider of SMR wireless communications services in the United States. The company's current operating regions and those it has agreed to acquire encompass more than 42 million people in a 17-state region.
 -0- 10/22/93
 /CONTACT: Stephen Schovee or Justin Jaschke of CenCall, 303-765-3400; or Jeff Zilka of Hill and Knowlton, 312-565-1200, ext. 526/
 (CCAL)


CO: CenCall Communications Inc.; Motorola Inc. ST: Colorado IN: TLS SU:

MC -- DV002 -- 5832 10/22/93 15:11 EDT
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Publication:PR Newswire
Date:Oct 22, 1993
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