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WEST COAST SMR ASSETS OF QUESTAR ANDADVANCED MOBILECOMM INC. TO BE ACQUIRED BY NEXTEL

 SALT LAKE CITY, Oct. 18 /PRNewswire/ -- Questar Corp. (NYSE: STR), Advanced MobileComm Inc. (AMI) and Nextel Communications Inc. (NASD: CALL) announced a joint agreement under which Nextel will make key acquisitions.
 The acquisitions will enable Nextel, a rapidly growing wireless communications company, to offer its Digital Mobile Wireless communication services in a variety of key western markets, including San Diego, Las Vegas, Seattle, Portland, Salt Lake City and Denver. Nextel already is licensed to offer these services in much of California, including Los Angeles and San Francisco.
 The boards of directors of Questar, AMI and Nextel have approved binding letter agreements to effect tax-free mergers of an AMI subsidiary and Questar Telecom Inc., a Questar subsidiary (QTI), into a subsidiary of Nextel in a transaction valued at approximately $290 million.
 "These transactions reflect our belief that Nextel and the SMR industry have a unique opportunity in this rapidly changing world of wireless communications," said Brian D. McAuley, Nextel president and chief executive officer. "Over the last several months, Nextel has activated its Los Angeles Digital Mobile system, the FCC has decided on its plans for personal communications services (PCS) and the industry generally has been consolidating very rapidly.
 "This industry is moving very rapidly toward nationwide networks," he added. "Unlike the cellular industry, whose move toward digital technology will be complicated by competing technical standards, Nextel has the ability to build a single nationwide all-digital network, utilizing compatible technologies and providing common services across all geographic areas. We have always focused on serving the best U.S. markets -- and we believe this transaction adds to the excellent markets in which we are already licensed."
 After the merger, Nextel will be able to offer high-quality digital mobile communications (mobile telephone, dispatch, paging and data services) in its East Coast regional market, extending from Maine through Virginia, Florida, its West Coast regional market, covering most of California, Arizona, Washington, Oregon and Nevada and other key U.S. markets in the Midwest (Chicago, Milwaukee, Minneapolis) and Southwest (Dallas and Houston). In total, Nextel systems will cover areas home to approximately 127 million people.
 Under terms of the agreement, Nextel will issue an aggregate of 5.8 million shares to shareholders of QTI and the AMI subsidiary and will become the sole shareholder of each of those companies. Questar will receive 67 percent of the Nextel shares and AMI will receive the balance. Consummation of the merger is subject to, among other things, Federal Communications Commission (FCC) and other regulatory approvals. The closing of the merger is expected to take place in the first quarter of 1994.
 "QTI is a firm believer that nationwide wireless networks are the wave of the future," said R.D. Cash, chairman of Questar Corp. "Nextel has achieved the momentum which we believe will enable it to be a leading provider of wireless communications services throughout the country."
 After the merger, Nextel, along with AMS, with which Nextel has an agreement to acquire a controlling interest, and CenCall Communications, Inc. (CenCall) with whom Nextel announced today an agreement to exchange properties for an equity interest in CenCall, will be able to offer high-quality digital mobile communications services (mobile telephone, dispatch, paging and data) in areas home to approximately 134 million people.
 "We are excited to be placing a large part of our investment in wireless communications industry with Nextel," said Jim Hynes, Managing Director of Fidelity Capital, a parent company of AMI. "The wireless communications industry is an exciting area of investment and the SMR industry in particular is a unique opportunity."
 "These transactions represent a critical step toward our goal of building a nationwide system," said Morgan E. O'Brien, Nextel chairman. "In light of the changing regulatory and competitive environments, we believe it is critical to deploy our Digital Mobile systems throughout the country as soon as possible. We will leave no stone unturned to make that happen."
 In February 1991, Nextel, the second largest operator of SMR systems in the United States, received authorization from the FCC to build Digital Mobile networks on spectrum already licensed to it.
 Nextel recently announced plans to acquire a majority interest in American Mobile Systems Inc. (AMS), a leading SMR operator in Florida. Nextel and AMS currently serve more than 200,000 subscribers nationwide.
 QTI is a subsidiary of Questar, an integrated natural gas company headquartered in Salt Lake City, with assets of approximately $1.3 billion. QTI was organized in 1989 to market the corporation's extensive experience with telecommunications in the Intermountain West.
 QTI has SMR properties in Seattle, Portland, Phoenix, Las Vegas, Salt Lake City and in other communities around the West. It serves more than 26,000 subscriber units.
 AMI is a subsidiary of Fidelity Capital, the new-business development unit of Fidelity Investments. Based in Boston, Fidelity Investments is the nation's largest mutual fund company with over $230 billion in assets under management.
 AMI has SMR properties in San Diego, Las Vegas and Denver, among other locations.
 -0- 10/18/93
 /CONTACT: R. Curtis Burnett, Business, 801-534-5541, or Home, 801-942-5171/
 (STR CALL)


CO: Questar Corp.; Advanced MobileComm Inc.; Nextel Communications Inc. ST: Utah IN: OIL SU: TNM

EH -- LA018 -- 3237 10/18/93 09:32 EDT
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Publication:PR Newswire
Date:Oct 18, 1993
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