Coded Communications announces investment and $2 million in new orders from Grupo ISA.

CARLSBAD, Calif.--(BUSINESS WIRE)--July 30, 1996--Coded Communications Corp. (NASDAQ Electronic Bulletin Board: CODD) (VcSE:CCI) ("Coded") Tuesday announced a second agreement with Grupo Information, Satellite and Advertising S.A. de C.V. ("ISA") pursuant to which ISA invested $1 million and placed $2 million in new orders for the company's mobile data products.

Jack Robinson, Coded's chief executive officer and president, commented, "The investment of $1 million from ISA, in advance of our agreement with ISA pursuant to which ISA will acquire a controlling interest in Coded, reaffirms ISA's confidence in Coded and the market opportunities in Mexico and Latin America.

"Our strategic and financial partnership with ISA is expected to be instrumental in profitably developing Coded's Latin America business. We believe ISA's willingness to move forward with its capital investment and additional new orders is evidence of developing near term opportunities in Mexico and Latin America."

Robinson added: "The $2 million in new orders placed by ISA are for early-stage projects for wireless mobile data communications systems in Mexico City. The roll-out of mobile data product on these systems is scheduled for late 1996 and early 1997."

The company and ISA previously announced an agreement in May 1996 under which ISA may acquire approximately 49,009,000 shares of the company's common stock, representing approximately a 67 percent fully diluted common stock ownership interest in the company.

Under the May 1996 agreement, ISA would, among other things, provide the company with $10 million in orders for Coded mobile data products from ISA customers in Mexico and Latin America, and a $1 million working capital loan (convertible into 4 million shares of common stock).

The May 1996 agreement also provides that certain holders of approximately $6.6 million of the company's secured debt are to restructure their debt at the time the transaction with ISA is consummated. Certain provisions of the May 1996 agreement are subject to shareholder approval.

Under a new agreement, ISA funded the $1 million working capital loan required by the May 1996 agreement and immediately converted the loan into 4 million shares of common stock. In addition, ISA placed $2 million in orders for the company's mobile data products, together with an advance deposit of $500,000 against the orders.

In consideration of the early release of $2 million in new orders, the $500,000 deposit against the orders, and the immediate conversion of the working capital loan into common stock, the company issued 6 million shares of common stock to ISA, of which 5 million of these shares are to be credited against the 49,009,000 shares to be issued to ISA under the May 1996 agreement.

ISA holds 10 million common shares, or approximately 40 percent of the company's outstanding common shares.

With headquarters in Carlsbad, Coded Communications is a leader in providing wireless data and aerospace telemetry solutions to public safety, government entities and commercial customers worldwide. Coded's World Wide Web site can be accessed at http://www.coded.com.

CONTACT: Coded Communications Corp., Carlsbad

Jack Robinson, 619/431-1945

or

Gibson/Nostas

Lawrence Gibson, 619/431-0077, ext. 246