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CENCALL COMMUNICATIONS INC. AND NEXTEL COMMUNICATIONS, INC. FORM STRATEGIC ALLIANCE

 DENVER, Oct. 18 /PRNewswire/ -- CenCall Communications, Inc. (NASDAQ: CCAL) announced today the formation of a strategic partnership with Nextel Communications, Inc. (NASDAQ: CALL) which strengthens and expands CenCall's operating territory to more than 25 million POPs.
 Nextel has agreed in principle to contribute to CenCall its specialized mobile radio (SMR) assets in Washington, Oregon and Colorado, acquired from Questar Corporation and Advanced Mobile Communication, Inc., as well as its own SMR assets in Arizona and Minnesota. In exchange, Nextel will receive 11 million CenCall common shares, approximately 37 percent of those outstanding.
 CenCall and Nextel have also agreed in principle to the establishment of an interoperability, or roaming, agreement, involving the following markets covering more than 30 million POPs: Washington, Oregon, Colorado, Wyoming, Arizona, Minnesota, Oklahoma, New Mexico, Idaho, Kansas and Kansas City, Mo.
 In connection with the roaming agreement, Nextel will purchase from CenCall a $10 million note and receive a 39-month option to purchase 4 million additional CenCall shares at an exercise price of $64 per share.
 Stephen Schovee, CenCall chief executive officer, said, "We are delighted to expand our territory and strengthen our relationship with Nextel in a single, strategic transaction."
 "We look forward to moving aggressively to build out our portion of the nationwide Digital Mobile Network," said Justin Jaschke, CenCall president.
 Brian McAuley, Nextel president and chief executive officer, said, "CenCall has done an excellent job in building a management team and in accessing the capital required to build Digital Mobile networks in their markets. We are looking forward to working more closely with CenCall in the implementation of our common vision."
 The companies noted that the alliance is subject to completion of due diligence, receipt of regulatory approvals, execution of a definitive agreement and approval by each company's board.
 CenCall is a leading provider of SMR wireless communications services in the United States. The company's current operating regions cover parts of Colorado, Kansas, Missouri, Oklahoma, Washington, Oregon, Idaho, Wyoming and Texas with a population of approximately 19 million people.
 -0- 10/18/93
 /CONTACT: Stephen Schovee, chief executive officer, or Justin Jaschke, president of CenCall, 303-765-3400; or Jeff Zilka, senior vice president of Hill and Knowlton, Inc., 312-565-1200, ext. 526/
 (CCAL CALL)


CO: CenCall Communications, Inc.; Nextel Communications, Inc. ST: Colorado IN: TLS SU:

GK-LG -- NY026 -- 3247 10/18/93 09:44 EDT
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Publication:PR Newswire
Date:Oct 18, 1993
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