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CELLULAR COMMUNICATIONS ANNOUNCES OPERATING RESULTS FOR FIRST QUARTER 1992

 CELLULAR COMMUNICATIONS ANNOUNCES
 OPERATING RESULTS FOR FIRST QUARTER 1992
 NEW YORK, May 15 /PRNewswire/ -- Cellular Communications, Inc. (NASDAQ, MIDWEST: COMMA) (CCI) announced today its operating results for the three months ended March 31, 1992.
 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 results of the joint venture for the three months ended March 31, 1992, and the pro forma results for the three months ended March 31, 1991, as if the joint venture had existed at the beginning of 1991:
 CCI/PACTEL JOINT VENTURE
 (In thousands, except subscribers)
 Three Months Ended March 31 1992 1991
 Revenues:
 Service $68,328 $51,288
 Equipment, net 3,029 1,229
 Total 71,357 52,517
 Expenses:
 Operating 15,300 10,688
 SG&A 29,102 21,388
 Total 44,402 32,076
 Operating income 26,955 20,441
 Depreciation and amortization (14,241) (12,084)
 Interest and other, net (75) 969
 Net income $12,639 $ 9,326
 Ending subscribers 303,000 225,000
 Discussion of Joint Venture Results
 Cellular service revenue increased from $51,288,000 to $68,328,000 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 $10,688,000 to $15,300,000, 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 $21,388,000 to $29,102,000. 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 $12,084,000 to $14,241,000 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.
 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)
 Three Months Ended March 31 1992
 Revenues:
 Service $1,293
 Equity in net income of joint venture 6,682
 Management fees 168
 Equipment, net 41
 Total 8,184
 Expenses:
 Operating 572
 SG&A 5,475
 Total 6,047
 Operating income 2,137
 Depreciation and amortization (1,938)
 Net interest (expense) (3,724)
 Nonrecurring charges (507)
 Net (loss) $(4,032)
 Net (loss) per common share $(.11)
 Weighted average shares 42,050
 Discussion of CCI Results
 Equity in the net income of the joint venture was $6,682,000 in 1992 and none in 1991 because the joint venture was formed on Aug. 1, 1991.
 The company incurred $507,000 of special legal, accounting and printing fees in 1992 primarily for the CCPR distribution required by the merger 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- 5/15/92
 /CONTACT: J. Barclay Knapp, chief operating officer, 614-325-2305, or Richard J. Lubasch, vice president - general counsel, 212-906-8470, both of Cellular Communications/
 (COMMA) CO: Cellular Communications, Inc. ST: New York IN: TLS SU: ERN


PS -- NY004 -- 0584 05/15/92 08:50 EDT
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Date:May 15, 1992
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