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CELLULAR COMMUNICATIONS ANNOUNCES OPERATING RESULTS FOR 1991

 CELLULAR COMMUNICATIONS ANNOUNCES OPERATING RESULTS FOR 1991
 NEW YORK, March 30 /PRNewswire/ -- Cellular Communications, Inc. (NASDAQ, MIDWEST: COMMA) (CCI) announced today its operating results for the year ended Dec. 31, 1991.
 On Aug. 1, 1991, CCI and 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 pro forma results of the joint venture as if it had existed at the beginning of 1990.
 Year Ended Dec. 31
 CCI/PacTel Joint Venture 1991 1990
 (In thousands, except subscribers)
 Revenues:
 Service $ 243,210 $ 197,204
 Equipment, net 6,646 3,856
 Total 249,856 201,060
 Expenses:
 Operating 51,359 39,109
 SG&A 98,855 76,996
 Total 150,214 116,105
 Operating income 99,642 84,955
 Property tax assessment -- 3,022
 Depreciation and amortization (49,788) (42,412)
 Interest and other, net 2,122 2,157
 Restructuring charges (2,697) --
 Net income $ 49,279 $ 47,722
 Ending Subscribers 285,000 211,000
 Discussion of Joint Venture Results
 Cellular service revenue increased from $197,204,000 to $243,210,000 primarily because of the increase in the number of subscribers. The gross margin from equipment increased in 1991 due to increased revenue from the joint venture's cellular phone rental program.
 Operating expenses increased from $39,109,000 to $51,359,000, representing 20 percent and 21 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. Operating expenses in 1991 also include toll charges relating to a temporary toll free calling promotion in the Northern Ohio region.
 Selling, general and administrative expenses rose from $76,996,000 to $98,855,000. 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 $42,412,000 to $49,788,000 due to the significant increase in the number of rented telephones and the increase in cellular network and in-house billing computer equipment to serve the increased subscriber base.
 The charge of $2,697,000 was incurred as a result of organizational restructuring relating to the creation of the joint venture.
 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 ("CCI Ohio"). 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. CCI's results of operations do not include OCOM and CCII after July 31, 1991. As a result of these changes, comparisons of 1991 and 1990 results may not be meaningful and, therefore, 1990 results for CCI are not presented.
 CELLULAR COMMUNICATIONS, INC.
 (In thousands, except per share data)
 Year Ended Dec. 31, 1991
 Revenues:
 Service $75,179
 Equity in net income of
 Joint Venture 10,033
 Management fees 140
 Equipment, net 3,266
 Total 88,618
 Expenses:
 Operating 18,989
 SG&A 43,060
 Total 62,049
 Operating income 26,569
 Depreciation and amortization (29,534)
 Net interest (expense) (10,957)
 Nonrecurring charges (8,360)
 (Loss) before extraordinary
 item (22,282)
 Extraordinary item (2,405)
 Net (loss) $(24,687)
 Net (loss) per
 common share before
 extraordinary item $(.56)
 Net (loss) per
 common share $(.62)
 Weighted average shares 40,681
 Discussion of CCI Results
 Equity in the net income of the joint venture was $10,033,000 in 1991 and none in 1990 because the Joint Venture was formed on Aug. 1, 1991.
 The company incurred $8,360,000 of special legal, accounting, financial advisory, printing and registration fees relative to the merger agreement during 1991.
 During 1991, CCI recognized an extraordinary loss of $2,405,000 from the write-off of deferred financing costs due to the early extinguishment of its old loan agreement.
 In January 1992, the company issued $217,000,000 principal amount at maturity, zero coupon convertible subordinated notes due July 27, 1999. The gross proceeds of $125,000,000 ($121,175,000 net of underwriters' discounts and commissions) represent a yield to maturity of 7.5 percent.
 In February 1992, CCI distributed shares of Cellular Communications of Puerto Rico, Inc. (NASDAQ: CCPR) to its shareholders. Each shareholder received one share of CCPR for every six shares of CCI stock held.
 -0- 3/30/92
 /CONTACT: J. Barclay Knapp, chief operating officer, 614-325-2305, or Stanton N. Williams, 212-906-8448, both of Cellular Communications/
 (COMMA) CO: Cellular Communications, Inc. ST: New York IN: TLS SU: ERN


PS -- NY009 -- 2707 03/30/92 08:48 EST
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Date:Mar 30, 1992
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