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ARCH COMMUNICATIONS GROUP ANNOUNCES NEW $55,000,000 BANK CREDIT AGREEMENT

 Westborough, Mass., April 14 /PRNewswire/ -- Arch Communications Group, Inc. (NASDAQ: APGR) announced today that it has closed on a new bank credit arrangement with a group of banks who will provide $55,000,000 of debt. This new facility will replace a credit agreement that had $39,500,000 outstanding.
 The lending group includes Bank of New York as Agent; PNC Bank, N.A. (Philadelphia); Fleet National Bank (Providence); USTrust (Boston); and Shawmut Bank Connecticut (Hartford). Proceeds from the new credit agreement will be used to repay existing senior bank and subordinated debt and for general corporate purposes, including capital expenditures and acquisitions.
 Availability of funds under terms of the facility is subject to the meeting of certain covenants. The loans will bear interest at rates based on either The Bank of New York's specified prime commercial lending rate, or the Eurodollar Rate, plus margins specified by covenants, at the Company's option.
 Commenting on this transaction, Arch CEO C. Edward Baker Jr. noted: "This transaction will provide substantial additional capital which will enable the Company to continue its rapid growth. The prior debt agreement required substantial amortization beginning in November 1993. This new debt arrangement will complement the $25 million raised in the Company's initial public offering of common stock in January, 1992."
 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. The Company's operations are organized into 5 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. As of February 28, 1993, Arch had approximately 190,000 subscriber units in service.
 -0- 4/14/93
 /CONTACT: William A. Wilson, vice president of finance and CFO of


Arch Communications, 508-898-0962/
 (APGR)


CO: Arch Communications Group, Inc. ST: Massachusetts IN: TLS SU: CON

CH -- NE004 -- 5533 04/14/93 08:49 EDT
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Publication:PR Newswire
Date:Apr 14, 1993
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