Cellular Communications of Puerto Rico, Inc. Announces Record Operating Results for Third Quarter 1998.

NEW YORK--(BUSINESS WIRE)--Nov. 13, 1998--CELLULAR COMMUNICATIONS OF PUERTO RICO, INC. (NASDAQ: CLRP) (the "Company") announced today record operating results for the three and nine months ended September 30, 1998.

Record Operating Results and Record Subscriber Growth at CCPR

At CCPR, Inc. ("CCPR"), the Company's wholly-owned subsidiary (the guarantor of the $200 million notes due 2007) operating in Puerto Rico and the U.S. Virgin Islands, EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) increased to a record $18.4 million for the third quarter 1998 versus $8.7 million for the third quarter of 1997 - a specifically unusual quarter in which results were suppressed by the implementation of Intelligent Network capabilities, Digital Cellular Transmission and Prepaid Cellular, among other factors. Third quarter EBITDA as a percentage of service revenues was 47% in 1998 versus 28% in 1997. On a comparable basis, CCPR reported EBITDA of $16.7 million for the second quarter 1998 and EBITDA margin was 45%.

Cellular subscribers increased by a record 30,300 to 264,700 in the third quarter, a 46% increase over September 30, 1997.

These results include revenues from insurance proceeds of $500,000 related to business interruption (as well as recovery of $100,000 of SG&A expense incurred to restore service) due to Hurricane Georges.

Initial indications are that business has continued to be strong in the fourth quarter.

At the holding company level, CLRP's EBITDA for the third quarter of 1998, after corporate overhead (but prior to operating losses related to development stage businesses spun out to shareholders in September), was $17.6 million versus $16.2 million for the second quarter of 1998. After operating losses of $2.6 million related to the development stage businesses that were spun off ("CoreComm Limited") in September, the Company's consolidated EBITDA was $15.0 million. There will be no further effect in subsequent periods on CLRP's results from these spun out businesses.

Financial Highlights          Three Months Ended   Nine Months Ended
                                 September 30        September 30
                              ------------------- -------------------
                                1998      1997      1998      1997
                              --------- --------- --------- ---------
                                 (in thousands, except subscribers
                                         and pagers in use)

CCPR Revenues:

 Service                       $39,224   $31,541  $110,791   $99,587
 Equipment income (loss), net      571      (586)    1,570    (1,996)
                              --------- --------- --------- ---------
                                39,795    30,955   112,361    97,591
CCPR Expenses:

 Operating                       4,294     4,555    12,660    12,783
 SG&A                           17,101    17,712    50,043    53,693
                              --------- --------- --------- ---------
  Total CCPR Expenses           21,395    22,267    62,703    66,476
                              --------- --------- --------- ---------
CCPR EBITDA                     18,400     8,688    49,658    31,115

  Corporate G&A (estimate)        (816)     (323)   (1,601)     (820)
                              --------- --------- --------- ---------
CLRP normalized EBITDA          17,584     8,365    48,057    30,295

  Loss from spun out
   businesses                   (2,600)        -    (4,367)        -
                              --------- --------- --------- ---------
CLRP EBITDA                     14,984     8,365    43,690    30,295

Non-cash charges               (21,758)        -   (21,758)        -
Depreciation and amortization   (8,784)   (6,674)  (25,069)  (18,252)
Interest and other, net         (6,674)   (4,324)  (16,254)  (11,400)
Income tax benefit (provision)  (2,796)      104    (3,632)   (1,241)
                              --------- --------- --------- ---------
Income before extraordinary
 item                          (25,028)   (2,529)  (23,023)     (598)
Loss from early extinguishment
 of debt                             -      (117)        -    (3,959)
                              ========= ========= ========= =========
Net income (loss)             $(25,028)  $(2,646) $(23,023)  $(4,557)
                              ========= ========= ========= =========

Basic and diluted loss per
 common share:

Loss before extraordinary item  $(1.90)    $(.19)   $(1.75)   $(.05)
Extraordinary item                   -      (.01)        -     (.30)
                              ========= ========= ========= =========
Net (loss)                      $(1.90)    $(.20)   $(1.75)   $(.35)
                              ========= ========= ========= =========
                              --------- --------- --------- ---------

Number of shares basic and
 diluted                        13,196    13,074    13,187    13,073

Ending subscribers                                 264,700   181,900
Ending pagers in use                                54,300    45,500

In September 1998, Hurricane Georges struck Puerto Rico and the U.S. Virgin Islands. The Company's insurance is expected to cover nearly all of the expenses associated with restoring its service, and approximately 90% of the cost of repairing and replacing damaged equipment and facilities. In addition, the Company has business interruption insurance so it is not expected to incur an uninsured material loss from the Company's cell sites that were out of service. The Company received $1,000,000 from its insurance company in November 1998 as a partial payment of its claim, which was recorded in the results of operations in the third quarter. The Company has not completed discussions with its insurance carriers and their adjusters regarding the total amount to be paid.

Discussion of CCPR Results

Service revenue increased to $39,224,000 from $31,541,000. Lower average revenue and minutes of use of new prepaid subscribers and the selection by existing subscribers of alternate rate plans resulted in average monthly revenue per cellular subscriber for the third quarter decreasing to $53 in 1998 from $59 in 1997.

Equipment income (loss), net, before depreciation of rental equipment, increased to income of $571,000 from a loss of $586,000 primarily because CCPR is not selling telephones below their cost to prepaid subscribers. Reductions in the cost of cellular telephones also contributed to this change.

Operating expenses decreased to $4,294,000 from $4,555,000 primarily due to the elimination of the expense accrual for the proposed Puerto Rico universal service charge in the fourth quarter of 1997. Subsidiaries of the Company were recording an estimate for this proposed charge in operating expenses through September 30, 1997. The total expense accrual of $1,644,000 was reversed in the fourth quarter of 1997 after the Puerto Rico Telecommunications Regulatory Board announced that the proposed retroactive application of the universal service charge to January 1997 had been eliminated. After adjusting for the reversal of $520,000 charged to expense in the third quarter of 1997, operating expenses increased to $4,294,000 from $4,035,000 due to additional costs associated with the expanded network (including paging operations). Operating expenses as a percentage of service revenue decreased to 11% in 1998 from 13% (after adjustment) in 1997.

Selling, general and administrative expenses decreased to $17,101,000 from $17,712,000 as a result of all of the following: a decrease in selling and marketing costs, bad debt expense and subscriber billing expense. The decreases in selling and marketing costs, bad debt expense and subscriber billing expense were 8%, 65% and 11%, respectively, of the $611,000 decrease. These decreases were partially offset by an increase in property taxes due to an increase in taxable property which was (29)% of the decrease.

Discussion of CLRP Results

Depreciation and amortization expense increased to $8,784,000 from $6,674,000 primarily because of an increase in property, plant and equipment.

Interest and other, net, increased to expense of $6,674,000 from expense of $4,324,000 as a result of the new bank loan commencing in August 1998 and due to losses on disposal of cell site equipment damaged by Hurrican Georges of approximately $400,000, net of partial payment of claims.

The (provision) benefit for income taxes increased to a provision of $2,796,000 from a benefit of $104,000 as a result of a tax provision of $2,200,000 in connection with the August 1998 transaction and an increase in Puerto Rico or U.S. Virgin Islands taxable income of certain of the Company's consolidated subsidiaries.

Full Spin-Off of CoreComm Limited Completed in September --------------------------------------------------------

As previously announced, in furtherance of the Company's strategic plan to pursue opportunities outside of Puerto Rico and the U.S. Virgin Islands, the Company contributed its non-Puerto Rico/U.S. Virgin Islands assets and $150 million in cash to CoreComm Limited and distributed 100% of the common stock of CoreComm Limited to the Company's shareholders on a one-for-one basis on September 2, 1998. CoreComm Limited trades on the Nasdaq market under the ticker symbol COMMF. CoreComm Limited's Form 10/A-2, filed with the Securities and Exchange Commission on August 28, 1998 and publicly available, further describes the spin-off.

At the time of the spin-off, the Company was renamed Cellular Communications of Puerto Rico, Inc. and continues to trade on the Nasdaq market under the new ticker symbol CLRP.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

Certain statements contained herein constitute "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995. When used herein, the words, "believe", "anticipate", "should", "intend", "plan", "will", "expects", "estimates", "projects", "positioned", "strategy", and similar expressions identify such forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from those contemplated, projected, forecasted, estimated or budgeted, whether expressed or implied, by such forward-looking statements. Such factors include the following: general economic and business conditions in the Company's markets including Puerto Rico, the U.S. Virgin Islands and Ohio, industry trends, the Company's ability to continue to design and build its network, install facilities, obtain and maintain any required government licenses or approvals and finance construction and development, all in a timely manner, at reasonable costs and on satisfactory terms and conditions, as well as assumptions about customer acceptance, churn rates, overall market penetration and competition from providers of alternative services, the impact of new business opportunities requiring significant up-front investment, and availability, terms and deployment of capital.

For further information contact: Stanton N. Williams, Chief Financial Officer or Richard J. Lubasch, Senior Vice President - General Counsel at [phone]. For copies of financial reports, contact Frances Mattera at [phone].