Metricom Reports Fourth Quarter 2000 Results; Ricochet, Fastest Mobile Wireless Internet Service, Covers 48 million in 15 Markets; Deployment Postponed Pending Additional Funding.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 8, 2001

Metricom, Inc. (Nasdaq:MCOM), a leading high-speed mobile wireless data network operator, today announced results for its fourth quarter and year ended December 31, 2000.

For the fourth quarter of 2000, Metricom reported revenues of $2.4 million, compared with $4.9 million for the same period of 1999. The Company reported a net loss attributable to common stockholders of $114.4 million or $3.71 per share in the fourth quarter of 2000, compared with a net loss of $56.3 million or $2.51 per share for the same period of the prior year. Capital expenditures for the fourth quarter of 2000 totaled $201.6 million, compared with $27.4 million in the same period of 1999. Total cash, investments and restricted cash and investments at December 31, 2000 stood at $526.8 million, the decrease from the previous quarter's $792.2 million being driven by capital expenditures and an Operating Cash Flow Loss (Loss from Operations plus Depreciation and Amortization) of $95.0 million in the quarter. The deployment of the high-speed Ricochet network principally accounts for the net loss attributable to common stockholders and capital expenditures for the period.

Metricom reported revenues of $11.8 million for the year, compared with $18.5 million for 1999. The Company reported a net loss attributable to common stockholders for 2000 of $245.4 million, or $8.15 per share; compared with a net loss of $104.5 million or $5.13 per share for 1999. In December, 2000, the company paid the annual dividend on its preferred shares in kind, which together with other non-cash items related to the preferred shares, aggregated $57.2 million. In addition, the Company made $645.7 million of capital expenditures primarily for network construction in progress in 2000, compared with $33.7 million in 1999. Revenues declined on a year-over-year basis due primarily to the Company's strategic decisions early in the year to license Utilinet operations to Schlumberger and to discontinue the sale of modems and subscriptions for its original Ricochet 28.8 kbps service. Metricom's 2000 results reflect the company's investment in the national deployment and commercial service launch of the nation's fastest mobile wireless data network.

During 2000, Metricom commenced the launch of the first nationwide high-speed wireless internet and corporate LAN access system. Service is now available in 13 markets as high-speed service and two markets with the original 28.8 kbps service, for a total of 15 markets with a population under coverage of 48 million people. Service is now available in Atlanta, Baltimore, Dallas, Denver, Detroit, Houston, Los Angeles, Minneapolis, New York City, Philadelphia, Phoenix, San Diego, and San Francisco with high-speed service; and Seattle and Washington, D.C. with the original 28.8 kbps service.

Total subscriber count at December 31, 2000 was 34,000, including 21,800 subscribers of our 28.8 kbps service and 12,200 subscribers of the newly launched 128 kbps service. This compared with subscriber count at the end of 1999 of 29,700 subscribers including no 128 kbps subscribers; and at September 30, 2000, of 25,900 subscribers including 2,500 128 kbps service subscribers. Average revenue per user, which is calculated quarterly, was $26.61 for the fourth quarter, up from $25.61 in the prior quarter.

Deployment Postponed Pending Additional Financing

In recognition of the company's need to manage cash conservatively, it will be focusing 2001 deployment efforts on the most significant markets. Deployment in other markets will depend on additional funding. Timothy Dreisbach, Metricom's chairman and CEO commented, "While fourth quarter results were in line with the company's expectations, the reality of the tight capital markets requires that we scale back our deployment plans, and look internally for further operating efficiencies. This prudent approach reduces the amount of capital required and provides additional time to secure more extensive financing on favorable terms. We continue to work closely with our strategic partners and financial advisors in our efforts to secure permanent financing."

The Company has funding for its operations and network build out into the second half of 2001. In the absence of financing, the business will not have sufficient resources to continue operations. We are looking at all alternatives and preparing to reduce staff and operations.

Fourth Quarter and Year-End Results Webcast Details

Conference Date: February 8, 2001

Conference Time: 11:00 a.m. Eastern Time

Webcast Information: www.Ricochet.com on the Investor Relations

page

Webcast replay available through February 22, 2001

About Metricom

Metricom, Inc. is a leading high-speed mobile wireless data network operator. With its high-speed Ricochet mobile access, Metricom is making "information anytime" possible-at home, at the office, on the road, and on many devices. Founded in 1985, Metricom has spent more than 15 years on the development of its distinctive Micro Cellular Data Network (MCDN) technology. That experience enables Metricom to develop the fastest wireless mobile data networking and technology available today. Ricochet has operated a 28.8 kbps service since 1995. The new Ricochet, delivering user speeds of 128 kbps, is currently available in thirteen markets and is connected to two 28.8 kbps service areas to increase coverage for mobile professionals. For more information, please visit Metricom at www.metricom.com.

Deployment Fact Sheet

February 8, 2001

Deployment Update: Ricochet service is now available in 15 markets, covering 48 million people, 13 with 128 kbps high-speed service, and two with our original 28.8 kbps service. Subscribers are able to use their service in any of the 15 markets.

Status of the build out:

-- Launched Ricochet 128 high-speed service in 13 markets: Atlanta, Baltimore,
Dallas/Fort Worth, Denver, Detroit, Houston, Los Angeles (February 5, 2001),
Minneapolis, New York City, Philadelphia, Phoenix, San Diego, and San
Francisco. The high-speed service is integrated with 28.8 kbps service in the
Seattle and Washington, D.C. markets.

-- Added new municipal agreements in 2000 covering nearly 22 million people for
a total of 71 million.

-- Added new utility agreements in 2000 covering 51 million people for total of
nearly 76 million.

-- Increased the number of wired access point (WAP) leases to 2,150 leases
completed and over 200 in negotiation. Zoning has now been received for over
2,100 sites, architectural and engineering completed for over 1,900 sites and
building permits received for 1,550 sites

-- Construction completed on 1,070 WAP sites with 250 more under construction
at year-end.

-- Received from vendors over 2,100 WAP units, with another 230 at >90%
complete at year-end.

-- Radios received (poletop and WAP radios) reached a cumulative 140,000.

-- Installed over 51,000 poletops during the year.

Resellers:

-- WorldCom joined GoAmerica, Juno Online Services and Wireless

WebConnect! actively selling Ricochet service.

-- Aether and IP Communications are expected to be actively

selling Ricochet in the near future.

-- Self-Service Activation commenced, allowing users to purchase

a modem off-the-shelf at a retail outlet and sign-up for

Ricochet service directly over the Internet.

Modems:

-- Received 57,700 Alps GS external modems.

-- Novatel commenced shipments of its Merlin Ricochet enabled PC

card modems and they are now available through a number of

outlets.

-- NatSteel GT modems are now available.

-- Sierra Wireless is expected to begin shipments of its AirCard

400 Ricochet enabled Network Interface Card shortly.

-- National Semiconductor continues to progress in design efforts

for a Ricochet chipset that will reduce the size of the modem

sufficiently to allow it to be incorporated directly into

consumer devices in a variety of forms.

Awards:

The company and its Ricochet service received the following awards and recognition during the quarter:

-- Awarded "Best of Show" at Comdex and PC Expo

-- Named one of Business Week's "Best Products of 2000"

-- Listed in The Industry Standard's "The Standard 100"

Statements made in this press release that are not historical facts, including those related to future market conditions, future funding requirements, future funding options, future subscriber growth, future capital expenditures, future competitors, future partners, future market rollouts and future technology, are forward looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause results to differ materially from those set forth in these statements. Among other things, the availability of financing and additional competition from existing and future competitors may impact the market. Projections of capital requirements, market size, partners, market acceptance, technological rollout and competition are estimated based on preliminary information as well as certain assumptions which management believes to be reasonable at this time. All forward-looking statements are subject to the successful completion of the actions described in this press release. In addition to the factors set forth elsewhere in this press release, the economic, competitive, governmental, technological and other factors identified in Metricom's filings with the Securities and Exchange Commission could affect the forward looking statements contained in this press release.

Note to Editors: Metricom and Ricochet are registered trademarks of Metricom, Inc. All other trademarks are the property of their respective owners.

                            Metricom, Inc.
            Condensed Consolidated Statement of Operations
               (In thousands, except per share amounts)


                      Three Months Ended         Twelve Months Ended
                      Dec 31,      Dec 31,       Dec 31,      Dec 31,
                        2000        1999          2000         1999
                     ---------    ---------    ---------    ---------
                           (Unaudited)

REVENUES:
 Service revenues    $   2,271    $   2,930    $   8,808    $  10,088
 Product revenues          113        1,950        3,038        8,437
                     ---------    ---------    ---------    ---------
  Total revenues         2,384        4,880       11,846       18,525
                     ---------    ---------    ---------    ---------

COSTS AND EXPENSES:
 Cost of service
  revenues              42,244        8,264      110,682       20,997
 Cost of product
  revenues               6,095        1,275       10,440        6,014
 Research and
  development           13,958        8,317       44,476       33,019
 Selling, general
  and administrative    35,112        6,405       65,145       19,005
 Depreciation
  and amortization      11,967        1,596       20,462        4,716
                     ---------    ---------    ---------    ---------
   Total costs
    and expenses       109,376       25,857      251,205       83,751
                     ---------    ---------    ---------    ---------
  Loss from
   operations         (106,992)     (20,977)    (239,359)     (65,226)

Interest expense          (367)      (1,316)     (11,600)      (5,884)
Interest and
 other income           11,388        4,229       62,812        4,818

                     ---------    ---------    ---------    ---------
  Net loss           $ (95,971)   $ (18,064)   $(188,147)   $ (66,292)

Preferred dividends
 and accretion          18,390       38,234       57,213       38,234
                     ---------    ---------    ---------    ---------
 Net loss attributable
  to common
  stockholders       $(114,361)   $ (56,298)   $(245,360)   $(104,526)
                     =========    =========    =========    =========
 Net loss attributable
   to common
   stockholders
   per share         $   (3.71)   $   (2.51)   $   (8.15)   $   (5.13)
                     =========    =========    =========    =========
   Weighted average
    shares
    outstanding         30,785       22,398       30,091       20,375
                     =========    =========    =========    =========

                            Metricom, Inc.
                 Condensed Consolidated Balance Sheets
                            (In thousands)

                                         December 31,   December 31,
                                             2000            1999
                                         -----------    -----------
ASSETS
Current Assets:
 Cash and cash equivalents               $   315,309    $   354,820
 Restricted cash and cash equivalents         11,331           --
 Short-term investments                      143,928        144,521
 Restricted short-term investments            38,085           --
 Accounts receivable, net                      2,409          2,387
 Inventories, net                             31,686            586
 Prepaid expenses and other                   11,480          3,116
                                         -----------    -----------
  Total current assets                       554,228        505,430

Property and equipment, net                  202,891         12,233
Network construction in progress             463,535         22,034
Other assets                                  14,740          6,950
Restricted long-term investments              18,166           --
                                         -----------    -----------
  Total assets                           $ 1,253,560    $   546,647
                                         ===========    ===========

LIABILITIES AND STOCKHOLDERS'
 EQUITY/(DEFICIT):
Current liabilities:
 Accounts payable                        $    89,115    $     9,649
 Accrued liabilities                          38,973         12,642
 Notes payable                                   876          4,521
                                         -----------    -----------
  Total current liabilities                  128,964         26,812
                                         -----------    -----------

Long-term debt                               244,667            385
                                         -----------    -----------
Other liabilities                                554            321
                                         -----------    -----------
Redeemable convertible preferred stock       614,976        573,329
                                         -----------    -----------

Stockholders' Equity/(Deficit):
 Common stock                                     31             25
 Warrants to purchase common stock            61,869           --
 Additional paid-in capital                  783,252        283,763
 Accumulated deficit                        (583,348)      (337,988)
 Accumulated other comprehensive loss          2,595           --
                                         -----------    -----------
  Total stockholders' equity/(deficit)       264,399        (54,200)
                                         -----------    -----------
 Total liabilities and stockholders'
  equity/(deficit)                       $ 1,253,560    $   546,647
                                         ===========    ===========