Cellular Communications announces operating results for 1995.

NEW YORK--(BUSINESS WIRE)--March 26, 1996--Cellular Communications Inc. (NASDAQ and Chicago: COMMA)("CCI") announced today its operating results for the year ended Dec. 31, 1995.

CCI and AirTouch Communications ("AirTouch") each holds a 50% interest in a joint venture (the "joint venture") that owns and operates cellular telephone systems located primarily in Ohio and Michigan.

The following summarizes the results of the joint venture for the years ended Dec. 31, 1995 and 1994:

CCI/AirTouch Joint Venture          Year Ended December 31
                                1995                     1994
                             (In thousands, except subscribers)

Revenues:
  Service                   $  673,872                $  498,077
  Equipment, net                10,838                    18,875
                               684,710                   516,952

Expenses:
  Operating                    146,593                   106,544
  SG&A                         252,360                   211,182
                               398,953                   317,726

Operating income               285,757                   199,226

Depreciation and amortization  (86,450)                  (81,664)
Interest and other, net          1,025                    (2,686)

Net income                  $  200,332                $  114,876

Ending subscribers           1,027,000                   729,000

                   Discussion of Joint Venture Results

    Service revenue increased to $673,872,000 from $498,077,000 as a
result of subscriber growth.
    The income from telephone equipment (before depreciation of
rental telephones) decreased to $10,838,000 from $18,875,000 because
of a decrease in telephone rental revenues and an increase in the
loss on sales of telephones.
    Operating expenses increased to $146,593,000 from $106,544,000
primarily because of increases in subscriber roaming, system usage
and the cost of fraudulent usage.
    Primarily due to higher selling costs corresponding to the
sizeable number of subscriber additions, selling, general and
administrative expenses increased to $252,360,000 from $211,182,000.
An increase in payroll expense contributed to the overall increase.
    Depreciation and amortization increased to $86,450,000 from
$81,664,000 due to the depreciation of additional cellular network
equipment, offset by a decline in depreciation of rental telephones
due to a decrease in the number of rental telephones.
    Interest and other, net increased to income of $1,025,000 from
expense of $2,686,000 primarily because of an increase in interest
income.
    The following summarizes the results of CCI for the years ended
Dec. 31, 1995 and 1994:

                                    Year Ended December 31
                                1995                     1994
                          (In thousands, except per share data)

Revenues:
  Equity in net income of
    joint venture            $ 101,286                $  58,558
  Management fees                  ---                      400
                               101,286                   58,958

Expenses:
  G&A                           13,532                   15,855
  Operating income              87,754                   43,103

Depreciation and amortization   (2,225)                  (2,301)
Net interest (expense)         (12,396)                 (11,618)
Gain on sale of subsidiary      16,099                      ---
Income before income taxes and
  extraordinary item            89,232                   29,184
Provision for income taxes     (31,325)                 (11,523)
Loss from early extinguishment
  of debt, net of income tax
  benefit                       (4,490)                      --

Net income                   $  53,417                $  17,661

Net income per common share:
  Income before extraordinary
    item                       $  1.30                   $  .40
  Extraordinary item              (.10)                      --

Net income                     $  1.20                   $  .40

Weighted average shares         44,645                   44,664

Discussion of CCI Results

Equity in net income of joint venture increased to $101,286,000 from $58,558,000 because of the increase in the net income of the joint venture.

Management fees in 1994 of $400,000 are the cancellation fee for the termination of the Richmond, Indiana RSA management agreement.

General and administrative expenses decreased to $13,532,000 from $15,855,000. Included in the 1995 and 1994 amounts are $8,970,000 and $10,948,000, respectively, of non-cash expense related to the changes made to the stock option agreements pursuant to the 1991 merger agreement between CCI and AirTouch.

Net interest expense increased to $12,396,000 from $11,618,000 primarily due to an increase in the effective interest rate on the bank loan as well as the compounding of interest on the Zero Coupon Convertible Subordinated Notes.

In 1995, the company recognized a gain on sale of subsidiary of $16,099,000 upon the exchange of the shares of stock of the subsidiary of the company that owns the non-wireline license for the Arkansas 10 RSA (as well as certain small minority interests in two other cellular markets) in exchange for 315,922 shares of AT&T Corp. common stock, the fair market value of which on the date of exchange was $16,428,000.

The provision for income taxes increased to $31,325,000 from $11,523,000 as a result of the increase in income before taxes.

In connection with the termination of the CCI Ohio bank loan, CCI Ohio recorded as an extraordinary loss $6,908,000 ($4,490,000 net of income tax benefit) of unamortized deferred financing costs.

CONTACT: Cellular Communications Inc.

J. Barclay Knapp, 212/906-8440

Stanton N. Williams, 212/906-8448

Richard J. Lubasch, 212/906-8470