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ARCH COMMUNICATIONS ACQUIRES PAGING COMPANY IN UPSTATE NEW YORK

 WESTBOROUGH, Mass., May 4 /PRNewswire/ -- Arch Communications Group, Inc. (NASDAQ: APGR) continues to expand in its New York markets and has announced that it has recently acquired for an undisclosed amount of cash the assets of a privately owned paging business in New York State. The acquisition will add over 3,000 subscribers in service and will be folded into Arch's Page New York operations.
 Arch CEO C.E. Baker, Jr. commented on the transaction: "This acquisition is located within Arch's present Page New York market area and offers excellent opportunities for us to increase our market share in this region. We believe our Page New York market will continue to grow at a rapid pace."
 Baker described Arch's history of growth: "With the closing of this transaction, we have acquired over 63,000 subscriber units in 22 transactions. Arch's growth has also been achieved by rapidly growing existing businesses and by opening market expansions which are new sales offices in markets adjacent to existing operations. Our internal growth in subscriber units has historically exceeded industry averages by more than 50 percent over our six and one-half year history. Additionally, we have started up 12 new market expansions, of which five were opened in the current fiscal year."
 Arch seeks to build shareholder equity by growing earnings before interest, taxes, depreciation and amortization, "EBITDA," and by increasing paging units in service. EBITDA, or operating cash flow, is the key performance measure for paging companies and is the basis for valuation as well as for borrowings from institutional lenders. The company believes that it can best grow EBITDA and paging units in service by establishing the lowest cost operating structure within its service areas, installing efficient high-quality transmission systems, and quickly and effectively responding to its customers through its decentralized organizational structure.
 Arch Communications Group, Inc. provides paging services in 13 states, serving primarily middle and small market areas with populations ranging from 250,000 to 1,000,000. At Feb. 28, 1993, Arch had 189,000 subscriber units in service. The company's operations are organized into five business units operating as Page New England; Page New York; Page Michigan; Page South in North Carolina, South Carolina and Georgia; and Interlink Paging in Louisiana and Florida.
 -0- 5/4/93
 /CONTACT: William A. Wilson, vp of finance and CFO, Arch


Communications, 508-898-0962/
 (APGR)


CO: Arch Communications Group ST: Massachusetts IN: TLS SU: TNM

DJ -- NE006 -- 4260 05/04/93 11:12 EDT
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Publication:PR Newswire
Date:May 4, 1993
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