Cell Phone Ownership Grows 29 Percent From 1999-2001 According to New Scarborough Study.

Business & Technology Editors

NEW YORK--(BUSINESS WIRE)--March 18, 2002

Nearly Two-Thirds of Americans Own Wireless Phones with Houston,

Atlanta, Honolulu, Miami and Dallas Topping Nationwide Standings

The latest study from Scarborough Research, the nation's leader in local, regional and national consumer information, shows a 29 percent growth rate for cell phone ownership over the past two years with almost two-thirds (62 percent) of American adults owning a cell phone.

The study shows Houston leads the nation with almost three-fourths (74 percent) of adults owning a cellular phone. Other cities that have a high concentration of cell phone ownership are Atlanta (73 percent), Honolulu (70 percent), Miami (69 percent) and Dallas (69 percent) - all above the national average.

Ranking on the low end with the least percentage of wireless adults are Roanoke, Va. (49 percent); Albany, N.Y. (49 percent); Wilkes-Barre, Penn. (46 percent); Buffalo, N.Y. (45 percent) and Charleston, W. Va. (39 percent).

Scarborough's market trending data shows that in 1999, slightly less than half (48 percent) of American adults owned a cell phone. In 2000, more than half (55 percent) of U.S. adults owned a cell phone and in the latest 2001 study, cell phone penetration numbers are up to 62 percent. All indicators demonstrate that the numbers will continue to grow since nine percent of American adults plan to purchase a cell phone in the next year.

"Overall, it is clear that wireless phone penetration continues to increase but what is important to note is the variance by local market," said Alisa Joseph, vice president of advertiser marketing services, Scarborough Research. "While some local markets have extremely high penetration for wireless users, other cities rank well below the national average for cell phone ownership. For the wireless industry, this points to a need to target these consumers where they live, work, socialize and commute. A targeted local campaign or wireless service package designed specifically around local market dynamics is essential to reach current and untapped customers."

This study also examined the average amount spent on monthly cellular bills. In the past month, more than one-third of cell phone owners (41 percent) paid more than $50, while almost a quarter (23 percent) paid more than $75 for their cellular service. In addition, the study shows a correlation between the amount of time spent commuting and the size of wireless phone owners' cell phone bills. Cellular phone owners who commute an hour or more are 66 percent more likely to have a cell phone bill of $150 or more.

The Wireless Adult

The wireless adult is tech-savvy with almost three quarters (72 percent) accessing the Internet and two-thirds (66 percent) using email. Almost a third (31 percent) shop online and close to a quarter (21 percent) play games online. Cell phone users are 25 percent more likely than the average adult to pay bills online and 22 percent more likely to purchase items or services while surfing the Web.

Cellular phone owners tend to be slightly more female (52 percent) than male (48 percent), age 25-54 (64 percent), married (59 percent) and over a quarter (27 percent) of cellular households have two or more children. The cell phone consumer is affluent with 71 percent owning their own home. In addition they are 26 percent more likely than the average adult to have a household income of $75,000+.

About Scarborough

Scarborough Research is a leader in local, regional and national consumer patterns and media usage. Scarborough serves a broad client base of radio and TV stations, cable systems, newspapers, advertisers, agencies, sports teams and leagues and Internet companies. Over 200,000 adults are interviewed annually and reports are issued twice a year examining a variety of consumer characteristics including online and offline consumer purchasing patterns, traditional and non-traditional media use, detailed demographics and lifestyle activities. Scarborough Research is a joint venture between Arbitron Inc. and VNU Marketing Information.

Scarborough is a midsize company with its executive offices located in New York City.

                         Scarborough Research
                   Percent of Cellular Phone Owners
                        By Market(a) Penetration

Rank  Market(a)           Percent   Rank   Market(a)           Percent

1   Houston, TX             74%     39    Louisville, KY          60%
2   Atlanta, GA             73      40    Hartford, CT            60
3   Honolulu, HI            70      41    Seattle, WA             60
4   Miami/Ft Lauderdale, FL 69      42    San Antonio, TX         60
5   Dallas-Ft. Worth, TX    69      43    San Diego, CA           60
6   Detroit, MI             68      44    Salt Lake City, UT      60
7   Baltimore, MD           68      45    Indianapolis, IN        60
8   Chicago, IL             67      46    Minneapolis, MN         60
9   San Francisco, CA       66      47    Cincinnati, OH          59
10  Denver, CO              66      48    Flint, MI               59
11  Greensboro, NC          66      49    Columbus, OH            58
12  Jacksonville, FL        66      50    Oklahoma City, OK       58
13  Austin, TX              66      51    Wichita, KS             58
14  Washington, DC          66      52    Providence, RI          58
15  New Orleans, LA         66      53    Milwaukee, WI           58
16  Raleigh-Durham, NC      65      54    Cleveland, OH           58
17  Las Vegas, NV           65      55    Toledo, OH              57
18  Charlotte, NC.          65      56    Rochester, NY           57
19  Philadelphia, PA        64      57    Tucson, AZ              57
20  Memphis, TN             64      58    Albuquerque, NM         56
21  Phoenix, AZ             64      59    Des Moines, IA          56
22  Birmingham, AL          63      60    Tampa, FL               56
23  Boston, MA              63      61    Harrisburg, PA          56
24  Los Angeles, CA         63      62    El Paso, TX             55
25  Sacramento, CA          63      63    Fresno, CA              55
26  New York, NY            63      64    Pittsburgh, PA          54
27  West Palm Beach, FL     63      65    Dayton, OH              54
28  Kansas City, MO         63      66    Lexington, KY           54
29  Ft. Myers, FL           62      67    Knoxville, TN           52
30  Portland, OR            62      68    Syracuse, NY            51
31  St. Louis, MO           62      69    Grand Rapids, MI        51
32  Nashville, TN           62      70    Spokane, WA             49
33  Orlando, FL             62      71    Roanoke, VA             49
34  Mobile, AL              62      72    Albany, NY              49
35  Greenville, SC          61      73    Wilkes-Barre, PA        46
36  Norfolk, VA             61      74    Buffalo, NY             45
37  Tulsa, OK               61      75    Charleston, W VA        39
38  Richmond, VA            61

    National Average =      62%

(a) Market represents DMA(TM) (designated market area)

Source: Scarborough Research Release 2 2001

DMA is a registered trademark of Nielsen Media Research. All other tradenames are the property of their respective owners.

This release is available on the KCSA Public Relations Worldwide Web site at www.kcsa.com