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PAGENET ANNOUNCES RECORD REVENUE, CUSTOMERS, CASH FLOW

 PAGENET ANNOUNCES RECORD REVENUE, CUSTOMERS, CASH FLOW
 DALLAS, Jan. 30 /PRNewswire/ -- Paging Network, Inc. (NASDAQ: PAGE)


(PageNet) today reported that revenues, operating cash flow and subscribers for the fiscal year ended Dec. 31, 1991, were the highest in the company's 10-year history.
 Revenues for the year were $153,242,000, compared to $111,214,000 in 1990, a 37.8 percent increase. Beginning with this reporting period, the company has reclassified the cost of pagers sold to net against product sales revenue. The reclassification reduces total revenue, but more appropriately presents the importance of recurring revenues from the company's core business, the service, rent and maintenance of pagers.
 Operating cash flow (earnings from operations before interest, taxes, depreciation and amortization) totaled $57,261,000 for 1991, compared to $39,270,000 in 1990, a 45.8 percent increase.
 At the end of the fiscal year, PageNet had 1,281,643 pagers in service with subscribers, a 43.6 percent increase over the 892,389 pagers in service at the end of 1990.
 The net loss for 1991 was $9,258,000, or a loss of 33 cents per share, compared to a net loss of $832,000 in 1990, or a loss of three cents per share. Net loss for 1990 included a gain of $17,685,000 from the sale of non-strategic paging operations. Without the sale the net loss for 1990 would have been $18,517,000.
 "1991 was a significant year for PageNet," said George M. Perrin, chief executive officer. "We became the largest company in the industry, surpassed the million-pagers-in-service mark, and in October we completed our initial public offering.
 "Our financial results were also significant. Operating cash flow is the key performance measure in the paging industry, and cash flow margins from net revenue increased from 35.4 percent in 1990 to 37.4 percent in 1991."
 Perrin said that PageNet expects substantial growth in 1992. "We will begin sales and service operations in Dallas/Fort Worth, Texas; Cincinnati/Dayton, Columbus and Cleveland, Ohio; and Atlanta; and expect to announce other new markets later in the year. We expect continued growth in the business, from both existing markets and newly entered markets, which ultimately will result in an increase in revenue and operating cash flow."
 In the fourth quarter, ended Dec. 31, 1991, revenue for the company was $43,920,000, an increase of 40.1 percent from $31,360,000 for the same period in 1990. Operating cash flow for the quarter totaled $16,813,000, an increase of 50 percent from $11,210,000 in 1990. Net income for the quarter was $417,000, or one cent per share of common stock, compared to a net loss of $4,999,000, or a loss of 19 cents per share in the fourth quarter of 1990.
 PageNet is the nation's largest paging company with local, regional and nationwide paging service available in 21 states and the District of Columbia, covering nearly 50 percent of the population in the United States.
 PAGING NETWORK, INC.
 Consolidated Statements of Operations
 (In thousands, except per share information)
 Year ended Dec. 31: 1990 1991
 Revenues:
 Service, rent and maintenance $ 107,371 $ 145,793
 Product sales 10,425 20,575
 Cost of products sold (6,582) (13,126)
 Total net revenues 111,214 153,242
 Operating expenses:
 Service, rent and maintenance 18,646 25,093
 Selling 17,671 21,491
 General and administrative 35,627 49,397
 Depreciation and amortization 31,843 41,154
 Total operating expenses 103,787 137,135
 Operating income 7,427 16,107
 Other income (expense):
 Interest expense (26,004) (25,394)
 Gain on sale of paging operations 17,685 --
 Other 60 29
 Total other income (expense) (8,259) (25,365)
 Net loss (832) (9,258)
 Net loss per share: (0.03) (0.33)
 Operating cash flow 39,270 57,261
 Pagers in service 892,389 1,281,643
 Long-term debt 234,500 146,029
 -0- 1/30/92
 /CONTACT: Jenny Haynes of Paging Network, 214-985-6986/
 (PAGE) CO: Paging Network Inc. ST: Texas IN: TLS SU: ERN


TS -- NY029 -- 5134 01/30/92 10:02 EST
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Date:Jan 30, 1992
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