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CELLULAR COMMUNICATIONS, INC. ANNOUNCES OPERATING RESULTS FOR 1992

 NEW YORK, March 29 /PRNewswire/ -- Cellular Communications, Inc. (NASDAQ and MIDWEST: COMMA) (CCI) announced today its operating results for the year ended Dec. 31, 1992.
 On Aug. 1, 1991, CCI and PacTel Corporation (PacTel) formed a joint venture equally owned by CCI and PacTel comprised of CCI's cellular telephone interests in Ohio and PacTel's cellular telephone interests in Michigan and Ohio.
 The following summarizes the results of the joint venture for the year ended Dec. 31, 1992 and the pro forma results for the year ended December 31, 1991 as if the joint venture had existed at the beginning of 1991:
 CCI/PACTEL JOINT VENTURE
 (In Thousands, Except Subscribers)
 Year Ended December 31, 1992 1991
 Revenues:
 Service $ 311,197 $ 243,210
 Equipment, net 14,597 6,646
 Total revenues 325,794 249,856
 Expenses:
 Operating 69,818 51,359
 SG&A 123,108 98,855
 Total expenses 192,926 150,214
 Operating income 132,868 99,642
 Depreciation and amortization (62,966) (49,788)
 Restructuring charges -- (2,697)
 Interest and other, net (639) 2,122
 Net income $ 69,263 $ 49,279
 Ending subscribers 370,000 285,000
 Discussion of Joint Venture Results:
 Cellular service revenue increased from $243,210,000 to $311,197,000 primarily because of the increase in the number of subscribers. The gross margin from equipment increased in 1992 due to increased revenue from the joint venture's cellular phone rental program.
 Operating expenses increased from $51,359,000 to $69,818,000, representing 21 percent and 22 percent of service revenues, respectively. The increase in absolute and percentage terms is due to the increasing level of subscriber activity and the company's expanded cellular network subject to the Ohio personal property tax.
 Selling, general and administrative expenses rose from $98,855,000 to $123,108,000. The increase was attributable to the increase in the number of subscriber activations and the costs of servicing and maintaining the larger subscriber base.
 Depreciation and amortization expense increased from $49,788,000 to $62,966,000 due to the significant increase in the number of rented telephones and the increase in cellular network equipment to serve the increased subscriber base.
 CCI Results
 Effective with the formation of the joint venture, CCI no longer consolidates its former Ohio cellular telephone interests that were contributed to the joint venture. Instead, CCI records 50 percent of the net income of the joint venture as "Equity in net income of Joint Venture." In addition, on July 31, 1991, CCI distributed the shares of its wholly-owned subsidiaries OCOM Corporation (OCOM) and Cellular Communications International, Inc. (CCII) to its shareholders. On Feb. 28, 1992, CCI distributed the shares of its wholly-owned subsidiary Cellular Communications of Puerto Rico, Inc. (CCPR) to its shareholders. CCI's results of operations do not include OCOM and CCII after July 31, 1991 and CCPR after Feb. 28, 1992. As a result of these changes, comparisons of 1992 and 1991 results may not be meaningful and therefore, 1991 results for CCI are not presented.
 CELLULAR COMMUNICATIONS, INC.
 (In Thousands, Except Per Share Data)
 Year Ended December 31, 1992
 Revenues:
 Equity in net income of joint venture $ 36,080
 Service 1,293
 Management fees 191
 Equipment, net 41
 Total revenues 37,605
 Expenses:
 Operating 572
 SG&A 17,752
 Total expenses 18,324
 Operating income 19,281
 Depreciation and amortization (3,875)
 Net interest (expense) (12,200)
 Equity in net loss of
 unconsolidated subsidiary (623)
 Nonrecurring shares (396)
 Income before income taxes and
 extraordinary item 2,187
 Provision for income taxes (4,092)
 (Loss) before extraordinary item (1,905)
 Extraordinary item: Utilization of
 net operating loss carryforwards 2,707
 Net income $ 802
 Net (loss) per common share before
 extraordinary item $ (.09)
 Net (loss) per common share $ (.03)
 Weighted average shares 42,233
 (A) The net (loss) per share is calculated after deducting the accrued dividend requirements on CCI's redeemable preferred stock of $2,099,000 for the year ended Dec. 31, 1992 from the loss before extraordinary item and net income for the period.
 Discussion of CCI Results:
 Equity in the net income of the joint venture was $36,080,000 in 1992 and $10,033,000 in 1991 because the joint venture was formed on Aug. 1, 1991.
 Selling, general and administrative expenses of $17,752,000 includes $10,901,000 of non-cash expenses related to the changes in stock option agreements pursuant to the merger agreement between CCI and PacTel.
 The equity in net loss of unconsolidated subsidiary of $623,000 is the net loss of Ashtabula Cellular Corp., a subsidiary of CCI and the former owner of the Ohio 3 RSA cellular license. CCI contributed the Ashtabula, Ohio FCC license and related assets and liabilities to the joint venture in January 1993.
 In January 1992, CCI issued $217,000,000 principal amount at maturity, zero coupon convertible subordinated notes due July 27, 1999. CCI received approximately $121,000,000 after original issue discount, underwriters' discounts and commissions, legal fees and other costs. The issue price represents a yield to maturity of 7.5 percent.
 -0- 3/29/93
 /CONTACT: J. Barclay Knapp, chief operating officer, 614-325-2305, or Stanton N. Williams, director corporate development, 212-906-8448, or Richard J. Lubasch, vice president-general counsel, 212-906-8470, all of Cellular Communications, Inc./
 (COMMA)


CO: Cellular Communications, Inc. ST: New York IN: TLS SU: ERN

TM-LD -- NY011 -- 0346 03/29/93 08:59 EST
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