Independent Wireless One, a Sprint PCS Network Partner, Assumes Local Management of Sprint PCS Service and Operations in Select Northeast Markets.

Business Editors

ALBANY, N.Y.--(BUSINESS WIRE)--Dec. 20, 1999

Independent Wireless One Corporation (IWO) announced today that it has closed on a network transition agreement with Sprint PCS that allows IWO to assume management of Sprint PCS Service in select northeast markets.

Additionally, under terms of the agreement, which commences immediately, IWO will provide exclusive 100 percent digital, 100 percent PCS wireless products and services under the Sprint PCS brand name to markets in the Northeast covering a total population of 6.3 million people.

IWO will begin a four-month transition period with Sprint PCS as it assumes service and operations in Albany, Syracuse, Utica-Rome, Glens Falls and the Poughkeepsie-Kingston area in New York; Manchester, New Hampshire; and portions of western Massachusetts and northeastern Pennsylvania. Both during and after the transition period, it will be "business as usual" for all current Sprint PCS customers. IWO plans to expand the existing Sprint PCS service network to more key cities in the region and the major interstates and highways connecting them.

The agreement makes IWO one of the largest Sprint PCS Network Partners in the country, with a contiguous territory that extends in New York State from suburban New York City to the Canadian border, and from Syracuse east to include all of Vermont, New Hampshire (excluding Nashua) and portions of western Massachusetts. As a Sprint PCS Network Partner, IWO will operate and market its network as Sprint PCS Service, using the same network hardware, Sprint PCS Phones, marketing campaigns and pricing structures. Under the seamless transition, IWO customers will continue to enjoy the trademark clarity and privacy offered by Sprint PCS and other Sprint PCS affiliates.

"Sprint PCS is the nation's largest all-digital nationwide PCS provider," said Tom Mateer, Vice President of Affiliations for Sprint PCS. "With the rapid addition of new affiliate partner companies, such as Independent Wireless One, our customers will be able to enjoy the convenience and benefit of all-digital Sprint PCS Products and Services in all of the places that they live, travel, work and play."

"We are excited to be joining Sprint PCS and offering customers in our territory the superior quality, call clarity, national coverage and advanced features that are synonymous with Sprint PCS," said Solon L. Kandel, Chief Executive Officer of Independent Wireless One Corporation.

Through this agreement, IWO will offer the full suite of Sprint PCS wireless voice, data and Internet services and products. IWO will benefit from Sprint PCS' relationships with key infrastructure and phone manufacturers, and national retail distribution partners. In addition, IWO will be able to utilize the PCS network and customer care support assets of Sprint PCS, including 24-hour network management and monitoring via the Sprint PCS National Network Operations Control Center; billing, voicemail and prepaid platforms; Sprint PCS customer care calling centers and enhanced customer care features.

Separately today, IWO announced it has entered into a definitive agreement with Investcorp, a global investment group, under which Investcorp, certain international co-investors and IWO management will acquire 79 percent of IWO for approximately $135 million in total equity. With the equity investment by Investcorp and its co-investors, and approximately $340 million in new credit facilities, IWO will acquire Sprint PCS's existing wireless communications infrastructure and customer base within markets throughout the Northeast, and fully finance customer growth and the future build out of a robust wireless network.

Independent Wireless One Corporation, a Sprint PCS Northeast Network Partner, provides all-digital, all-PCS products and services under the Sprint PCS Brand name to markets covering a population of 6.3 million people. Dedicated to providing the wireless service that connects customers to their world, Independent Wireless One serves a contiguous territory that extends in New York from suburban New York City to the Canadian border, and from Syracuse east to include all of Vermont, New Hampshire (excluding Nashua) and portions of western Massachusetts and northeastern Pennsylvania.

Sprint PCS operates the largest all-digital, all-PCS nationwide wireless network in the United States, already serving the majority of the nation's metropolitan areas including more than 4,000 cities and communities across the country. Sprint PCS has licensed PCS coverage of nearly 270 million people in all 50 states, Puerto Rico and the U.S. Virgin Islands. For more information, visit the Sprint PCS web site at http://www.sprintpcs.com. Sprint PCS is a wholly owned tracking group of Sprint Corporation trading on the NYSE under the symbol "PCS."

Sprint is a global communications company at the forefront of integrating long distance, local and wireless communications services and one of the world's largest carriers of Internet traffic. Sprint built and operates the United States' only nationwide all-digital, fiber-optic network and is a leader in advanced data communications services. Sprint has $20 billion in annual revenues and serves more than 17 million business and residential customers.