Clearnet Selects Lucent Technologies as PCS Supplier Arranges $475 Million Vendor Financing Facility.

TORONTO--(BUSINESS WIRE)--July 16, 1996--CLEARNET(NASDAQ: CLNTF TSE, ME: NET.A ) Clearnet Communications Inc. today announces that its wholly owned subsidiary Clearnet PCS Inc. (collectively "Clearnet" or "the Company") has entered into a memorandum of understanding for the purchase and financing of an estimated $425 million in CDMA (Code Division Multiple Access) PCS (Personal Communications Services) infrastructure and subscriber equipment from Lucent Technologies Canada Inc. ("Lucent").

It is believed to be the largest wireless equipment supply arrangement and financing ever in Canada. The arrangements are subject to further negotiation and will require completion of definitive documentation, among other conditions. Clearnet is building-out the 33 largest cities in Canada by the end of 1998 and expects to commence PCS service in certain of the largest cities in 1997.

According to George A. Cope, Clearnet's President and Chief Executive Officer, "Lucent earned the business because of the superior commercial and financing terms as well as the outstanding reputation that this world class organization brings to Clearnet. We look forward to working with Lucent to bring premium PCS wireless services to Canadians".

"We are happy that Clearnet has chosen Lucent's CDMA technology as they move forward with their PCS strategy in Canada," said Jim Schram, President and CEO of Lucent Technologies Canada. "There is increased demand for better voice quality, more capacity, freedom, and privacy in wireless communications today and CDMA delivers improvements in all these areas. This project will enable Clearnet to provide one of the most advanced digital wireless networks in the world and Lucent is proud to be helping to make it a reality."

Clearnet is Creating Jobs

Since starting in late 1994 the expansion of Clearnet's organization for the build-out and future provision of digital wireless services, Clearnet has more than tripled the number of its employees to the current total of 515. Clearnet's business plan entails increasing its employee count to over 700 by December 1996. In total, the deployment and provision of Clearnet's digital wireless services is expected to create over 1,000 direct and 3,000 indirect jobs over the next decade. Why CDMA?

Clearnet selected CDMA technology for its PCS system over competing standards for a variety of reasons. Robert C. Simmonds, Clearnet's Chairman and Vice President Regulatory-Technology, considers "CDMA the optimum PCS technology for Clearnet because of its superior capacity and hand-set battery life, lower capital and operating costs, voice quality and roaming potential. The adoption of CDMA by most of the largest wireless companies in North America for PCS offers Clearnet's future PCS subscribers many potential CDMA roaming partners whose licensed territory exceeds 90 percent of the U.S. population. We expect that most of the top 50 metropolitan areas of the United States will have operating CDMA systems by the time Clearnet commences its PCS service in Canada. Moreover, the adoption of CDMA by such leading service providers is expected to result in significant economies of scale and ongoing service development by the world's leading telecommunication manufacturers for CDMA."

Vendor Financing

The memorandum of understanding with Lucent includes the provision of $475 million in vendor financing to Clearnet for the purchase of PCS equipment and services from Lucent and other secondary suppliers as well as the accrual of interest in the first two years of borrowings. The financing commitment of Lucent is also subject to further negotiation and completion of definitive documentation, among other conditions.

Including this vendor financing, Clearnet has now raised over $1.1 billion in financing for the build-out and implementation of the Company's Business Communications Services ("BCS") and PCS networks since completing its initial public offering in October 1994. Clearnet does not expect any material cash interest payments to be required until after the completion of the build-out and commercialization of both its BCS and PCS digital networks. As a result, upon completion of the proposed vendor financing, Clearnet will have fully funded its estimated capital requirements for both BCS and PCS for the next couple of years.

Lucent Technologies (formerly the systems and technology arm of AT&T) designs, builds and delivers a wide range of public and private networks, communications systems and software and consumer and business telephone systems. The company employs 125,000 people worldwide and had 1995 revenues of U.S. $21.4 billion.

Clearnet is a Canadian wireless communications company which was recently awarded a national 30 MHz PCS licence in Canada. Clearnet currently provides dispatch communications services in over 40 cities across Canada and plans to launch PCS in a number of Canada's densely populated regions in mid-1997. In addition, Clearnet is currently in the process of preparing for the launch of its BCS digital network in the Ontario-Quebec coverage area utilizing Enhanced Specialized Mobile Radio ("ESMR") technology.

CONTACT: Clearnet Communications Inc.

Robert McFarlane, 905/837-3007

INTERNET: http://www.clearnet.com

EMAIL: [e-mail]