Powertel Responds to Confusion Over Security of Digital Wireless Communications.

WEST POINT, Ga.--(BUSINESS WIRE)--April 2, 1997--Powertel, a Personal Communications Service (PCS) provider and wholly owned subsidiary of InterCel, Inc., (NASDAQ:ICEL), has been responding to inquiries regarding the security of its digital communications in the wake of recent news reports that the security of certain digital wireless communications had recently been compromised.

The concerns stem from claims made by a team of commercial and academic cryptographers that have discovered a flaw in the privacy protection systems used by many advanced digital phone providers. The flaw relates to the Cellular Message Encryption Algorithm, which secures signals between a handset and a base station.

Powertel wishes to reiterate that the Global System for Mobile Communications (GSM) platform, on which Powertel's system has been built, is a technology which has not been compromised. Codes were broken for systems built on CDMA, TDMA and NAMPS platforms.

"When designing our network, we recognized that GSM has significant advantages over the other technology platforms from which we were able to choose," said Allen E. Smith, president and CEO of Powertel. "These recent security breaches further solidify our belief that by choosing a time-proven technology we made the correct decision. While we recognize that no security measures may be completely impenetrable, we are confident that our customers, as well as those of other GSM-based providers, can place their full confidence in the security of their personal communications system."

In addition to encryption, GSM systems also rely on the added security of a Subscriber Identity Module (SIM) card. A handset cannot function if a user's card is not inserted. The card stores user data and provides the added security of authentication using an algorithm designed to verify the user's identity. Authentication is currently the industry's most effective tool in fighting security breaches.

Thanks to the advanced encryption algorithms, SIM card technology and authentication algorithms, no GSM-based provider has had the security of their system compromised. GSM systems have been in operation worldwide for the last six years.

Powertel is licensed (or has licenses pending) to provide PCS in 12 states to a population of 24 million people. Major cities include Atlanta, Augusta, Birmingham, Chattanooga, Jackson, Jacksonville, Knoxville, Louisville, Memphis and Nashville. The company utilizes the Global System for Mobile Communications (GSM), the leading technology for digital communications deployed in 108 countries with more than 28 million subscribers. Powertel offers compact handsets featuring portable phone, voice mail and paging services throughout its coverage area. For more information on the company and its services, visit the Powertel section of http://www.ICEL.com on the World Wide Web.

CONTACT: Cookerly & Co.

CHIP STEWART/RUSS WILLIAMS

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