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ARCH COMMUNICATIONS TO ACQUIRE PAGING COMPANY IN NEW ENGLAND

 WESTBOROUGH, Mass., May 11 /PRNewswire/ -- Arch Communications Group, Inc. (NASDAQ: APGR) as part of its ongoing program to expand operations in its New England markets has announced that it has recently signed an agreement to purchase for an undisclosed amount of cash the assets of a privately owned paging business in Maine. The purchase is subject to regulatory approval. The acquisition is expected to close in approximately 90 days and will add more than 15,000 subscribers in service and will be folded into Arch's Page New England operation.
 Arch CEO C. E. Baker, Jr. commented on the transaction: "This acquisition is a major carrier located within Arch's present Page New England market area and offers attractive opportunities for us to increase our market share in this region. We believe that our Page New England market will continue to grow rapidly."
 Baker described Arch's history of growth: "With the closing of this transaction, we will have acquired over 75,000 subscriber units in 23 transactions including four transactions totalling some 22,000 subscriber units in fiscal 1993. 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- 5/11/93
 /CONTACT: William A. Wilson, VP/finance and CFO of Arch Communications, 508-898-0962/
 (APGR)


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

DD -- NE012 -- 6965 05/11/93 10:50 EDT
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Publication:PR Newswire
Date:May 11, 1993
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