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PAGENET REPORTS CONTINUED GROWTH IN NET REVENUES, CUSTOMERS AND OPERATING CASH FLOW

 PAGENET REPORTS CONTINUED GROWTH IN NET REVENUES, CUSTOMERS AND
 OPERATING CASH FLOW
 DALLAS, April 20 /PRNewswire/ -- Paging Network, Inc. (NASDAQ: PAGE) today reported continued growth in net revenues, operating cash flow and subscribers for the first quarter of 1992.
 Net revenues (revenues from services, rent and maintenance plus product sales less cost of products sold) for the quarter ended March 31, 1992, were $47,342,000, a 41.1 percent increase over the $33,542,000 reported for the first quarter of 1991.
 Operating cash flow (earnings from operations before interest, taxes, depreciation and amortization), which is the key performance measure in the paging industry, totaled $17,790,000 for the first quarter of 1992, a 47.0 percent increase over the $12,105,000 in the corresponding quarter of 1991. Operating cash flow margins for the 1992 first quarter were 37.6 percent, compared to 36.1 percent for the corresponding quarter of 1991.
 At March 31, 1992, PageNet had 1,438,983 pagers in service with subscribers, a 52.2 percent increase over the 945,154 pagers in service at March 31, 1991, and a 12.3 percent increase over the 1,281,643 pagers in service at Dec. 31, 1991.
 Net income for the first quarter of 1992 was $853,000, or 3 cents per share, compared to a net loss of $3,851,000, or a loss of 14 cents per share, in the corresponding quarter of 1991. The company said it expects a loss for the year because of expenditures associated with entering new markets and increased indebtedness, which will fund the company's future growth.
 "One of our major objectives in 1992 is to increase the number of subscribers in existing markets and expand into other markets," said George M. Perrin, president and chief executive officer. "While this strategy requires substantial capital and will generally result in net losses, it will generate an ever-increasing, long-term stream of operating cash flow. This operating cash flow, discounted to present value and less outstanding debt, represents the best method of valuing the company. We have made significant progress in meeting this objective this quarter."
 PageNet is the largest and fastest growing major provider of paging services in the United States. The company's local, regional and nationwide paging service is available in 21 states and the District of Columbia. Earlier this year the company announced it would begin operations in 1992 in Las Vegas, Nev.; Pittsburgh, Pa.; Sacramento, Calif.; Dallas/Fort Worth, Texas; Atlanta, Ga.; and Cleveland/Akron, Cincinnati/Dayton and Columbus, Ohio. The company expects to open other as-yet-unannounced markets later this year.
 PAGING NETWORK, INC.
 Consolidated Statements of Operations
 (Unaudited)
 (In thousands, except per share and pagers in service information)
 Three months ended March 31 1991 1992
 Services, rent and maintenance
 revenues $ 32,242 $ 44,209
 Product sales 3,055 9,617
 Cost of products sold (1,755) (6,484)
 Total 33,542 47,342
 Operating expenses:
 Services, rent and maintenance 5,736 7,620
 Selling 4,599 6,449
 General and administrative 11,102 15,483
 Depreciation & amortization 9,165 12,503
 Total operating expenses 30,602 42,055
 Operating income 2,940 5,287
 Other income (expense):
 Interest expense (6,796) (4,440)
 Other 5 6
 Total other income (expense) (6,791) (4,434)
 Net income (loss) $ (3,851) $ 853
 Net income (loss) per share $ (0.14) $ 0.03
 Operating cash flow $ 12,105 $ 17,790
 Long-term debt $ 237,000 $ 151,000
 Pagers in service 945,154 1,438,983
 -0- 4/20/92
 /CONTACT: Jenny Haynes of PageNet, 214-985-6986/
 (PAGE) CO: Paging Network, Inc. ST: Texas IN: TLS SU: ERN


GK -- NY009 -- 9867 04/20/92 08:55 EDT
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Publication:PR Newswire
Date:Apr 20, 1992
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