ALEXANDRIA, Va., Aug. 24 /PRNewswire-FirstCall/ -- USA Mobility, Inc. (Nasdaq: USMO), a leading provider of wireless messaging services, today announced that, through a subsidiary, it has entered into a Master Antenna Site Lease agreement (the "Master Leases") with a subsidiary of Global Signal, Inc. (NYSE: GSL) under which USA Mobility and/or its affiliates may lease space for their equipment on communications sites currently and subsequently owned, managed or leased by Global Signal.
The new Master Leases were effective as of July 1, 2005 and expire on December 31, 2008. Under the Master Leases, USA Mobility may locate up to a specified maximum number of transmitters on Global Signal's sites for a fixed monthly fee. The fixed monthly fee decreases periodically over time from approximately $1.6 million for July 2005 to approximately $1.0 million per month in 2008.
Vincent D. Kelly, president and chief executive officer of USA Mobility, said: "We are delighted to partner with Global Signal as we integrate and rationalize our technical networks. We expect to consolidate up to 50% of our transmitters onto Global Signal sites by the end of 2008. This new agreement will allow us to enjoy substantial synergies and cost savings, considering our pro-forma site lease cost run rate in 2004 was in excess of $130 million and now our potential cost for approximately half our annual site rents by 2008 will be $12 million."
Based in Sarasota, Florida, Global Signal, formerly known as Pinnacle Holdings, Inc., is one of the largest wireless communications tower owners in the United States. It owns, leases or manages more than 11,000 towers and other wireless communications sites.
About USA Mobility
USA Mobility, Inc., headquartered in Alexandria, Virginia, is a leading provider of paging products and other wireless services to the business, government and healthcare sectors. USA Mobility offers traditional one-way and advanced two-way paging via its nationwide networks covering more than 90% of the U.S. population and with roaming partners in Canada and Mexico. In addition, the company offers mobile voice and data services through Nextel, Singular/AT&T Wireless, and Sprint, including Blackberry and GPS location applications. The company's product offerings include wireless connectivity systems for medical, business, government and other campus environments. USA Mobility focuses on the business-to-business marketplace and supplies mobile connectivity solutions to over two-thirds of the Fortune 1000 companies. For further information visit http://www.usamobility.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act: Statements contained herein or in prior press releases which are not historical fact, such as statements regarding USA Mobility's Master Leases agreement with Global Signal, Inc. and its subsidiaries and future costs savings and synergies in connection with the Global Signal Master Leases, are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that may cause USA Mobility's actual results to be materially different from the future results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expectations include, but are not limited to, declining demand for paging products and services, the ability to continue to reduce operating expenses, future capital needs, competitive pricing pressures, competition from both traditional paging services and other wireless communications services, government regulation, reliance upon third- party providers for certain equipment and services, the timely and efficient integration of the operations and facilities of Metrocall and Arch as well as other risks described from time to time in periodic reports and registration statements filed with the Securities and Exchange Commission. Although USA Mobility believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. USA Mobility disclaims any intent or obligation to update any forward-looking statements.
Contact: Bob Lougee (703) 721-3080
SOURCE USA Mobility, Inc. -0- 08/24/2005 /CONTACT: Bob Lougee of USA Mobility, +1-703-721-3080/ /Web site: http://www.usamobility.com/ (USMO GSL)