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VANGUARD REPORTS RECORD OPERATING CASH FLOW AND SERVICE REVENUES FOR SECOND QUARTER 1992

 VANGUARD REPORTS RECORD OPERATING CASH FLOW
 AND SERVICE REVENUES FOR SECOND QUARTER 1992
 GREENSBORO, N.C., July 28 /PRNewswire/ -- Vanguard Cellular Systems, Inc. (NASDAQ-NMS: VCELA) today reported record operating cash flow (income from operations before depreciation and amortization) and service revenues for the second quarter ended June 30, 1992.
 Operating cash flow was $4.0 million for the second quarter of 1992 compared to $349,000 during the second quarter of 1991. For the six months ended June 30, 1992 operating cash flow was $5.5 million compared to an operating cash flow deficit of $201,000 for the same period last year.
 Service revenues increased to a record $21.0 million for the period, 33 percent higher than the second quarter of last year. Average monthly service revenues per subscriber increased to $93, as compared to $80 in the first quarter of 1992 and $89 in the second quarter of 1991 principally because of increased roaming revenue. For the six-month period ended June 30, 1992, service revenues increased 29 percent to $38.1 million from the same period a year ago. The number of cellular subscribers increased 28 percent from a year ago to 77,500.
 Total operating costs and expenses (excluding depreciation and amortization) were $18.4 million, an increase of 9 percent from the second quarter of 1991. General and administrative expenses declined as a percentage of service revenues to 29 percent for the second quarter of 1992 compared to 40 percent for the same period in 1991. Marketing and selling expenses declined to 26 percent from 30 percent of service revenues for the second quarters of 1992 and 1991 respectively.
 Vanguard's President and Chief Executive Officer Haynes G. Griffin commented, "We consider this year's second quarter the best period of operations in our Company's history. We are particularly pleased with our results considering the slow economic recovery in our primary operating regions and we remain confident that our key operating growth rates will continue to improve."
 Stephen R. Leeolou, Executive Vice President and Chief Operating Officer, noted: "We believe our results in revenue per subscriber and cash flow year to date demonstrate that our long-standing strategy of focusing on high quality subscriber growth, together with increasing the fixed portion of our revenue through higher access fees and controlling expenses, is succeeding." He added, "Consequently, we believe that we are well positioned to maximize operating margins on our incremental revenue growth."
 The Company's 1992 second quarter net loss of $5.3 million or ($0.21) per share, compared to a net loss of $9.1 million or ($0.43) per share for the same period of 1991 representing a 42 percent improvement.
 Vanguard Cellular Systems, Inc. headquartered in Greensboro, North Carolina, owns and operates cellular telephone systems in the Eastern United States. Based upon its 6.1 million "pops," including pops under contract, Vanguard is the nation's third largest independent operator of solely nonwireline cellular systems.
 VANGUARD CELLULAR SYSTEMS, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (Dollar amounts in thousands, except per share data)
 THREE MONTHS SIX MONTHS
 ENDED JUNE 30, ENDED JUNE 30,
 1992 1991 1992 1991
 (Unaudited) (Unaudited) (Unaudited) (Unaudited)
 Revenues:
 Service fees $20,954 $15,777 $38,108 $29,611
 Cellular tele-
 phone equipment
 revenues 1,419 1,439 2,730 2,533
 22,373 17,216 40,838 32,144
 Costs and Expenses:
 Cost of
 service 5,068 3,845 9,536 7,533
 Cost of cellular
 telephone
 equipment 1,788 1,976 3,333 3,197
 Marketing and
 selling 5,430 4,748 10,835 9,357
 General and
 administrative 6,068 6,298 11,644 12,258
 18,354 16,867 35,348 32,345
 Income (loss) from
 operations before
 depreciation and
 amortization 4,019 349 5,490 (201)
 Depreciation and
 amortization (5,488) (4,803) (10,575) (9,152)
 Loss From Operations (1,469) (4,454) ( 5,085) (9,353)
 Equity in earnings
 (losses) of unconsolidated
 cellular entities 118 69 (149) 88
 Net gains on dispositions
 of cellular interests -- 127 -- 148
 Loss from dispositions
 of property and
 equipment -- -- (439) --
 Interest expense (3,969) (5,231) (8,124) (10,692)
 Interest income 97 219 194 383
 Loss before Minority
 Interests (5,223) (9,270) (13,603) (19,426)
 Minority Interests (57) 129 118 379
 Net Loss $(5,280) $(9,141) $(13,485) $(19,047)
 Net Loss Per Share $ (0.21) $ (0.43) $ (0.55) $ (0.91)
 Weighted Average
 Number of Common
 Shares Outstanding 24,705,858 21,186,066 24,642,855 20,985,824
 CONDENSED CONSOLIDATED BALANCE SHEETS
 June 30, December 31,
 1992 1991
 (Unaudited) (See note)
 Current Assets $ 16,388 $ 22,202
 Investments in Cellular Entities 152,681 151,571
 Property and Equipment, net of
 accumulated depreciation of
 $42,532 and $36,489 73,164 74,581
 Other Assets 7,357 7,456
 Total Assets $ 249,590 $ 255,810
 Current Liabilities $ 13,258 $ 14,348
 Long-Term Debt, net of current
 portion 188,665 183,680
 Minority Interests 5,994 6,113
 Shareholders' Equity 41,673 51,669
 Total Liabilities and Shareholders'
 Equity $ 249,590 $ 255,810
 Note: The balance sheet information at December 31, 1991 and the statement of operations information for the 12 months then ended have been derived from the audited financial statements at these dates.
 -0- 7/28/92
 /CONTACT: Stan Haines, Vanguard Cellular Systems, Inc., 919-545-2100/
 (VCELA) CO: Vanguard Cellular Systems, Inc. ST: North Carolina IN: TLS SU: ERNS


JZ -- CH002 -- 4064 07/28/92 11:47 EDT
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Date:Jul 28, 1992
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