Centennial Communications Announces Definitive Agreement to Purchase Cable Assets in Puerto Rico.

Business Editors

NEPTUNE, N.J.--(BUSINESS WIRE)--May 16, 2000

(NASDAQ: CYCL) Centennial Communications Corp. today announced the signing of a definitive agreement to purchase the assets of cable television systems serving Aguadilla, Mayaguez, San German and surrounding communities in Puerto Rico from Pegasus Communications Corporation (NASDAQ: PGTV) for $170 million.

The cable systems pass over 170,000 homes in western Puerto Rico and serve over 55,000 subscribers using 123 route-miles of fiber optic and 1,268 route-miles of coaxial cable.

The transaction is subject to customary closing conditions including regulatory approvals and is expected to close in the second half of calendar year 2000.

"The addition of cable television to Centennial's current offerings on the island strengthens our position as a single-source provider of communication services for our customers," said Michael J. Small, Centennial's president and chief executive officer. "The proposed acquisition adds cable television to Centennial's current Puerto Rico service offerings of wireless PCS, wireless local loop, Internet, and local and long distance telephone services."

Marshall W. Pagon, chairman, president and CEO of Pegasus commented, "The sale of our Puerto Rico cable assets completes our exit from the cable television business and allows management to focus its attention more closely on our rapidly growing DBS business. We continue to view Puerto Rico as a market with attractive potential for advanced communications services and believe Centennial will enjoy a good opportunity to further grow the business."

Centennial is one of the largest independent wireless telecommunications service providers in the United States and the Caribbean with approximately 18.7 million Net Pops and over 585,500 wireless subscribers. Centennial's domestic operations have approximately 6.1 million Net Pops and over 416,500 wireless subscribers. Centennial de Puerto Rico is a fully integrated provider of communications services in Puerto Rico, utilizing a PCS license that covers 3.8 million Pops in Puerto Rico and the U.S. Virgin Islands and a Competitive Local Exchange Carrier license to operate in Puerto Rico. Centennial de Puerto Rico has approximately 169,000 wireless subscribers. In addition, the Company owns 70% of a PCS license in the Dominican Republic representing approximately 6.2 million Net Pops, 51% of an 800 MHz CDMA license in Jamaica representing approximately 1.3 million Net Pops and holds minority shares representing approximately 1.2 million Net Pops in U.S. cellular operations controlled and managed by other operators.

Welsh, Carson, Anderson & Stowe (WCAS) and an affiliate of The Blackstone Group are controlling shareholders of Centennial. WCAS is a private investment firm based in New York and founded in 1979. WCAS currently manages over $8 billion in private equity capital and focuses primarily on the information services and healthcare industries. The Blackstone Group is a New York based private investment bank whose current corporate investment vehicle, Blackstone Capital Partners III Merchant Banking Fund, LP, has approximately $3.8 billion in committed capital.

Pegasus Communications Corporation (www.pgtv.com) is one of the fastest growing media companies in the United States. Pegasus is the largest independent provider of DBS services to rural parts of the United States on the DIRECTV(R) platform, serving approximately 1.2 million DBS subscribers in 41 states. Pegasus is also a broadcaster operating and/or programming ten TV stations serving 2.0 million TV households in smaller markets affiliated with FOX, UPN and the WB.