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CELLULAR COMMUNICATIONS INC. ANNOUNCES OPERATING RESULTS FOR THIRD QUARTER 1992

 CELLULAR COMMUNICATIONS INC. ANNOUNCES OPERATING RESULTS
 FOR THIRD QUARTER 1992
 NEW YORK, Nov. 13 /PRNewswire/ -- Cellular Communications, Inc. (NASDAQ and MIDWEST: COMMA) (CCI) announced today its operating results for the three and nine months ended September 30, 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 and nine months ended Sept. 30, 1992 and the pro forma results for the three and nine months ended Sept. 30, 1991 as if the joint venture had existed at the beginning of 1991:
 CCI/PACTEL JOINT VENTURE
 (In thousands, except subscribers)
 Period ended Three Months
 Sept. 30 1992 1991
 Revenues:
 Service $81,540 $63,636
 Equipment, net 3,864 1,969
 Total revenues 85,404 65,605
 Expenses:
 Operating 18,175 14,008
 SG&A 30,846 25,102
 Total expenses 49,021 39,110
 Operating income 36,383 26,495
 Depreciation and amortization (16,154) (12,625)
 Restructuring charges -- (1,117)
 Interest and other, net (719) 406
 Net income 19,510 $13,159
 Ending subscribers 342,000 258,000
 Period ended Nine Months
 Sept. 30 1992 1991
 Revenues:
 Service $ 226,913 $ 175,966
 Equipment, net 10,759 5,058
 Total revenues 237,672 181,024
 Expenses:
 Operating 50,455 36,481
 SG&A 89,588 69,948
 Total expenses 140,043 106,429
 Operating income 97,629 74,595
 Depreciation and amortization (45,756) (36,873)
 Restructuring charges -- (1,117)
 Interest and other, net (443) 2,308
 Net income $ 51,430 $ 38,913
 Discussion of Joint Venture Third Quarter Results:
 Cellular service revenue increased from $63,636,000 to $81,540,000 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 $14,008,000 to $18,175,000, representing 22 percent of service revenues in both periods. The increase in absolute terms is due to the increasing level of subscriber activity.
 Selling, general and administrative expenses rose from $25,102,000 to $30,846,000. 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 $12,625,000 to $16,154,000 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)
 Period ended Three Months
 Sept. 30 1992
 Revenues:
 Equity in net income of Joint venture $ 10,117
 Expenses:
 SG&A 4,160
 Operating income 5,957
 Depreciation and amortization (646)
 Net interest (expense) (2,278)
 Equity in net loss of unconsolidated
 subsidiary (154)
 Income before income taxes 2,879
 Provision for income taxes (269)
 Net income $2,610
 Net income per common share(A) $.05
 Weighted average shares 43,817
 Period ended Nine Months
 Sept. 30 1992
 Revenues:
 Service $ 1,293
 Equity in net income of joint venture 26,800
 Management fees 191
 Equipment, net 41
 Total revenues 28,325
 Expenses:
 Operating 572
 SG&A 13,289
 Total expenses 13,861
 Operating income 14,464
 Depreciation and amortization (3,246)
 Net interest (expense) (8,860)
 Equity in net loss of unconsolidated
 subsidiary (438)
 Nonrecurring charges (396)
 Income before income taxes 1,524
 Provision for income taxes (374)
 Net income $1,150
 Net (loss) per common share(A) $(.01)
 Weighted average shares 43,730
 (A) The net income (loss) per share is calculated after deducting the accrued dividend requirements on CCI's redeemable preferred stock of $525,000 and $1,575,000 for the three and nine months ended Sept. 30, 1992, respectively, from the net income for the period.
 Discussion of CCI Third Quarter Results:
 Equity in the net income of the joint venture was $10,117,000 in 1992 and $4,487,000 in 1991 because the joint venture was formed on Aug. 1, 1991.
 The equity in net loss of unconsolidated subsidiary of $154,000 is the net loss of Ashtabula Cellular Corp., the owner of the Ohio 3 RSA cellular license, which the company acquired in April 1992.
 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 100 percent of the 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- 11/13/92
 /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 Corp./
 (COMMA) CO: Cellular Communications, Inc. ST: New York IN: TLS SU: ERN


SM-LD -- NYF005 -- 0524 11/13/92 08:40 EST
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