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USA Mobility Reports Fourth Quarter and 2007 Operating Results
Subscriber and Revenue Trends Improve, Expenses Decline; Core Market Segments Show Continued Progress; $98.3 Million in Capital Returned to Stockholders
ALEXANDRIA, Va., Mar 05, 2008 (BUSINESS WIRE) -- USA Mobility, Inc. (Nasdaq: USMO), a leading provider of wireless messaging and communications services, today announced operating results for the fourth quarter and year ended December 31, 2007.

Total revenue for the fourth quarter was $100.2 million, compared to $105.4 million in the third quarter of 2007 and $116.0 million in the fourth quarter of 2006. EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) for the fourth quarter of 2007 was $24.5 million, or 24.5 percent of revenue, and operating income was $13.6 million. Total revenue for 2007 was $424.6 million, compared to $497.7 million in 2006. EBITDA for 2007 was $124.5 million, or 29.3 percent of revenue, while operating income was $75.8 million.

The Company reported a net loss of $46.7 million, or $1.70 per fully diluted share, for the fourth quarter, compared to net income of $8.3 million, or $0.30 per fully diluted share, in the fourth quarter of 2006. The loss primarily resulted from a $54.3 million income tax expense in the fourth quarter due to a reduction in the carrying value of deferred income tax assets. Absent the incremental income tax expense, net income for the fourth quarter would have been $7.6 million, or $0.28 per fully diluted share. The higher income tax expense resulted in a net loss for the year of $5.2 million, or $0.19 per fully diluted share, from $40.2 million, or $1.46 per fully diluted share, in 2006. Third quarter net income has been adjusted to reflect a change in income tax expense due to the lapse of the statute of limitations on the 2003 income tax liabilities.

Key results for the fourth quarter and 2007 included:

-- Quarterly net unit losses slowed to 135,000 in the fourth quarter from 193,000 in the first quarter, while the quarterly rate of unit erosion improved to 3.7 percent in the fourth quarter from 4.7 percent in the first quarter. The annual rate of unit erosion declined to 15.1 percent in 2007 from 16.0 percent in 2006. Net unit losses were 620,000 in 2007 versus 781,000 in 2006. Total units in service at year-end 2007 were 3,485,000, compared to 4,105,000 a year earlier.

-- The quarterly rate of revenue erosion increased to 5.0 percent in the fourth quarter from 3.9 percent in the first quarter. However, the year-over-year rate of revenue decline improved from 19.5 percent in 2006 to 14.7 percent in 2007, the Company's slowest rate of revenue decline in years.

-- Operating expenses, excluding depreciation, amortization and accretion, were $75.7 million for the fourth quarter, a reduction of $9.5 million, or 11.2 percent, from $85.2 million in the year-earlier quarter. For the full year, operating expenses declined by $57.2 million, or 16.0 percent, to $300.1 million from $357.3 million in 2006. Expense reduction during the year was largely due to network rationalization, staff reductions and company-wide cost efficiencies.

-- Average revenue per unit (ARPU) was $8.62 for the fourth quarter, an increase from $8.57 in the fourth quarter of 2006. For the year, ARPU totaled $8.55, compared to $8.60 in 2006. ARPU levels remained stable during 2007 due principally to structural pricing changes and a reduction in the rate of billing and service credits.

-- EBITDA as a percentage of revenue, or EBITDA margin, was 24.5 percent in the fourth quarter, compared to 26.6 percent the year-earlier quarter.

-- Capital expenses totaled $18.3 million in 2007, compared to $21.0 million in 2006.

-- The Company generated $96.3 million in cash during the year from operating and investing activities and had a cash balance of $64.5 million at December 31, 2007.

-- During the year the Company distributed to stockholders quarterly cash distributions of $0.65 per share of common stock plus a special distribution of $1.00 per share in the second quarter. Combined, the cash distributions represented a return of capital to stockholders of $98.3 million.

-- The number of full-time equivalent employees declined from 1,235 at the beginning of the year to 1,003 at year end as a result of ongoing consolidation and expense control initiatives.

"We made excellent progress in the fourth quarter and during 2007," said Vincent D. Kelly, president and chief executive officer. "We continued to operate the Company profitably while meeting our primary operating goals, reducing costs, increasing organizational efficiencies and expanding product offerings to our core market subscribers throughout the country. Despite ongoing competitive challenges, subscriber and revenue trends continued to improve, prices remained stable and we generated a sufficient level of cash flow to return capital to stockholders in the form of cash distributions."

Kelly said the Company continued to concentrate its sales and marketing efforts during the year around its core market segments of Healthcare, Government and Large Enterprise. "At year end, our core market segments represented 77.6 percent of our direct subscriber base, compared with 67.7 percent at December 31, 2006, with Healthcare alone representing 42.1 percent. In addition, these core market segments made up approximately 68.1 percent of our direct paging revenue in 2007, compared to 57.2 percent in 2006. During the year," he added, "we announced several new products and services designed to support our core customers. They included the nation's first wide area coaster pager, called ReadyCall, to help hospital administrators ease congestion in patient waiting areas, an alliance with WeatherBug Professional to provide severe weather alerts to first responder organizations, and a customized paging solution, called PageSync, which gives customers using BlackBerry(R) smartphones paging reliability and multiple features in a single device. Going forward," Kelly said, "we look to broaden our presence and create new sales and service opportunities in these core market segments."

Consistent with its stated strategy, Kelly said USA Mobility generated sufficient cash flow in 2007 to again return capital to stockholders. The Company paid quarterly cash distributions of $0.65 per share and a special distribution of $1.00 per share in the second quarter, returning a total of $98.3 million in capital to stockholders during the year. "In addition," Kelly noted, "our Board of Directors on February 13, 2008, declared a $0.65 per share quarterly cash distribution for stockholders of record as of February 25th, payable on March 13th. Similar to previous distributions, we expect the entire amount of the March 13th cash distribution to be paid as a return of capital."

Kelly cautioned investors, however, that the rate at which the Company will continue to return capital to stockholders would depend largely on future operating results as well as various other business factors. "Additionally, in light of the deterioration in our stock price over the last nine months, as well as increased flexibility we have under Section 382, the Board of Directors is evaluating our strategy for returning capital to stockholders which may include periodic recurring cash distributions, special cash distributions, a stock repurchase program or a combination of these alternatives."

He also pointed out that a regulatory decision made during 2007 eventually could have a significant impact on the Company's network cost structure and capital allocation strategy. "Last October the Federal Communications Commission (FCC) issued an Order on Reconsideration (Back-Up Power Order) requiring large commercial mobile radio service (CMRS) providers, including USA Mobility, to have at least eight hours of back-up power at each transmission site to minimize communications outages during emergencies. We do not believe the Back-Up Power Order should apply to paging carriers for a variety of reasons, including the unique simulcast and high-power network architecture of paging. Accordingly, along with numerous other wireless providers and trade associations, we appealed the Back-Up Power Order in January to the DC Circuit Court of Appeals. We expect the appeal to be heard around mid-year."

Thomas L. Schilling, chief operating officer and chief financial officer, said: "We continued to strengthen our financial position in 2007, principally through ongoing cost reduction initiatives including our network rationalization program and efforts to 'right size' our organization as demand for paging products remained slow. While subscriber disconnect rates were higher than forecast, however, we continued to generate strong cash flow during the year and are pleased with our overall financial results."

Schilling said the improvement in the rate of annual revenue erosion to 14.7 percent from 19.5 percent resulted in part from structural price increases in 2007 in selected distribution channels and improvements in the rate of service credits. "Total paging ARPU increased to $8.62 in the fourth quarter from $8.57 in the fourth quarter of 2006," he noted, "while indirect ARPU increased to $5.06 from $4.92 in the year-earlier quarter and was our highest level of indirect ARPU in several years." Schilling cautioned, however, that ARPU would likely trend downward going forward since further price increases were unlikely in the near term.

Commenting on the reduction of deferred income tax assets (DTAs) in the fourth quarter, Schilling explained: "Accounting rules require us to evaluate whether or not the Company will use all of its DTAs to offset future taxable income. As a result, based on current trends for subscribers, revenue, operating expenses and capital expenses - which, of course, are subject to change - we projected future levels of taxable income that mandated a reduction in the carrying value of our DTAs based on our effective tax rate of approximately 38 percent. Going forward, we will continue to evaluate our operating trends and will adjust the carrying value of our DTAs, either up or down, as circumstances warrant."

Schilling also commented on the Company's financial guidance. "We are pleased the financial guidance we provided for 2007 was largely on target," he noted. "Total revenue of $424.6 million was within our guidance range of $420 million to $425 million; operating expenses (excluding depreciation, amortization and accretion) of $300.1 million were slightly above the revised guidance range of $293 million to $298 million; and capital expenses of $18.3 million were within the guidance range of $18 million to $20 million. With respect to guidance for 2008, the Company expects revenue to be in a range from $345 million to $355 million, operating expenses (excluding depreciation, amortization and accretion) to be in a range from $250 million to $255 million, and capital expenses in a range from $18 million to $20 million."

USA Mobility plans to host a conference call for investors on its fourth quarter and 2007 results at 11:00 a.m. Eastern Time on Thursday, March 6, 2008. The dial-in number for the call is 888-708-5691 (toll-free) or 913-981-5560 (toll). The pass code for the call is 9699744. A replay of the call will be available from 4:00 p.m. ET on March 6 until 11:59 p.m. on Thursday, March 20. The replay number is 888-203-1112 (toll-free) or 719-457-0820 (toll). The pass code for the replay is 9699744.

About USA Mobility

USA Mobility, Inc., headquartered in Alexandria, Virginia, is a comprehensive provider of reliable and affordable wireless communications solutions to the healthcare, government, large enterprise and emergency response sectors. As a single-source provider, USA Mobility's focus is on the business-to-business marketplace and supplying wireless connectivity solutions to over 70 percent of the Fortune 1000 companies. The Company operates nationwide networks for both one-way paging and advanced two-way messaging services. In addition, USA Mobility offers mobile voice and data services through Sprint Nextel, including BlackBerry(R) smartphones and GPS location applications. The Company's product offerings include customized wireless connectivity systems for the healthcare, government and other campus environments. USA Mobility also offers M2M (machine-to-machine) telemetry solutions for numerous applications that include asset tracking, utility meter reading and other remote device monitoring applications on a national scale. For further information visit 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 future operating and financial performance, 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, 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. Tables to Follow

                          USA MOBILITY, INC.
         CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (a)
   (unaudited and in thousands, except share and per share amounts)



                               For the three months ended
                  ----------------------------------------------------
                    3/31/06      6/30/06      9/30/06      12/31/06
                  ----------------------------------------------------

Revenues:
  Paging service  $   125,673  $   118,872  $   112,129  $   107,520
  Cellular              2,026        2,096        1,728        1,877
  Product sales         6,131        5,180        4,851        5,394
  Other                 1,062        1,057          845        1,253
                  ----------------------------------------------------
Total revenues        134,892      127,205      119,553      116,044
                  ----------------------------------------------------

Operating
 expenses:
  Cost of
   products sold          786        1,169        1,184          698
  Service, rental
   and
   maintenance         48,092       44,769       42,489       41,770
  Selling and
   marketing           11,059       11,118       10,929       10,796
  General and
   administrative      36,142       32,208       30,994       28,533
  Severance and
   restructuring          170          321          682        3,413
  Depreciation,
   amortization
   and accretion       18,794       18,900       18,361       17,244
                  ----------------------------------------------------
Total operating
 expenses             115,043      108,485      104,639      102,454
                  ----------------------------------------------------
   % of total
    revenues             85.3%        85.3%        87.5%        88.3%

                  ----------------------------------------------------
Operating income       19,849       18,720       14,914       13,590
                  ----------------------------------------------------
   % of total
    revenues             14.7%        14.7%        12.5%        11.7%

  Interest
   income, net            549        1,023          717        1,579
  Other income
   (expense), net          62          988          103         (353)
                  ----------------------------------------------------
Income before
 income tax
 expense               20,460       20,731       15,734       14,816
  Income tax
   expense              8,195        9,779        7,075        6,511
                  ----------------------------------------------------
Net income (loss) $    12,265  $    10,952  $     8,659  $     8,305
                  ====================================================

Basic net income
 (loss) per
 common share     $      0.45  $      0.40  $      0.32  $      0.30
                  ====================================================
Diluted net
 income (loss)
 per common share $      0.45  $      0.40  $      0.31  $      0.30
                  ====================================================

Basic weighted
 average common
 shares
 outstanding       27,397,307   27,399,533   27,400,853   27,401,492
                  ====================================================
Diluted weighted
 average common
 shares
 outstanding       27,503,230   27,587,958   27,575,039   27,596,451
                  ====================================================


Reconciliation of
 operating income
 to EBITDA (c):
Operating income  $    19,849  $    18,720  $    14,914  $    13,590
Add back:
 depreciation,
 amortization and
 accretion             18,794       18,900       18,361       17,244
                  ----------------------------------------------------
EBITDA            $    38,643  $    37,620  $    33,275  $    30,834
                  ====================================================
   % of total
    revenues             28.6%        29.6%        27.8%        26.6%




                                For the three months ended
                    --------------------------------------------------
                       3/31/07     6/30/07    9/30/07 (b)   12/31/07
                    --------------------------------------------------

Revenues:
  Paging service     $   104,003 $    98,248 $     95,393 $    91,825
  Cellular                 2,087       2,497        2,035       1,705
  Product sales            4,400       5,335        6,851       5,618
  Other                    1,052       1,390        1,145       1,040
                    --------------------------------------------------
Total revenues           111,542     107,470      105,424     100,188
                    --------------------------------------------------

Operating expenses:
  Cost of products
   sold                      687       1,508        2,435       1,603
  Service, rental
   and maintenance        39,033      39,356       36,746      36,795
  Selling and
   marketing              10,242       9,975        9,891       8,720
  General and
   administrative         26,448      23,297       23,606      23,316
  Severance and
   restructuring              17           -        1,177       5,235
  Depreciation,
   amortization and
   accretion              13,318      12,450       12,048      10,872
                    --------------------------------------------------
Total operating
 expenses                 89,745      86,586       85,903      86,541
                    --------------------------------------------------
   % of total
    revenues                80.5%       80.6%        81.5%       86.4%

                    --------------------------------------------------
Operating income          21,797      20,884       19,521      13,647
                    --------------------------------------------------
   % of total
    revenues                19.5%       19.4%        18.5%       13.6%

  Interest income,
   net                       951         932          856         709
  Other income
   (expense), net           (516)        826        1,038         802
                    --------------------------------------------------
Income before income
 tax expense              22,232      22,642       21,415      15,158
  Income tax expense       9,206       9,676        5,947      61,816
                    --------------------------------------------------
Net income (loss)    $    13,026 $    12,966 $     15,468 $   (46,658)
                    ==================================================

Basic net income
 (loss) per common
 share               $      0.47 $      0.47 $       0.56 $     (1.70)
                    ==================================================
Diluted net income
 (loss) per common
 share               $      0.47 $      0.47 $       0.56 $     (1.70)
                    ==================================================

Basic weighted
 average common
 shares outstanding   27,434,418  27,440,094   27,445,028  27,450,035
                    ==================================================
Diluted weighted
 average common
 shares outstanding   27,578,066  27,570,346   27,594,513  27,450,035
                    ==================================================


Reconciliation of
 operating income to
 EBITDA (c):
Operating income     $    21,797 $    20,884 $     19,521 $    13,647
Add back:
 depreciation,
 amortization and
 accretion                13,318      12,450       12,048      10,872
                    --------------------------------------------------
EBITDA               $    35,115 $    33,334 $     31,569 $    24,519
                    ==================================================
   % of total
    revenues                31.5%       31.0%        29.9%       24.5%


(a) Slight variations in totals are due to rounding.
(b) Income tax expense increased by $4,838,000. This increase reflects
 a change in recognizing the lapse of the statute of limitations on
 the 2003 income tax liabilities.
(c) EBITDA or earnings before interest, taxes, depreciation,
 amortization and accretion is a non-GAAP measure and is presented for
 analytical purposes only.

                          USA MOBILITY, INC.
                    UNITS IN SERVICE ACTIVITY (a)
                     (unaudited and in thousands)



                                        For the three months ended
                                     ---------------------------------
                                     3/31/06 6/30/06 9/30/06 12/31/06
                                     ------- ------- ------- ---------
Units in service
------------------------------------

Beginning units in service
    Direct one-way                    3,835   3,678   3,547    3,429
    Direct two-way                      348     324     307      292
                                     ---------------------------------
  Total direct                        4,183   4,002   3,854    3,721
                                     ---------------------------------
    Indirect one-way                    603     535     483      449
    Indirect two-way                    100      97      94       89
                                     ---------------------------------
  Total indirect                        703     632     577      538
                                     ---------------------------------
Total beginning units in service      4,886   4,634   4,431    4,259
                                     =================================

Gross placements
    Direct one-way                      108     119     120      112
    Direct two-way                       15      15      15       15
                                     ---------------------------------
  Total direct                          123     134     135      127
                                     ---------------------------------
    Indirect one-way                     24      18      24       36
    Indirect two-way                      4       5       5        7
                                     ---------------------------------
  Total indirect                         28      23      29       43
                                     ---------------------------------
Total gross placements                  151     157     164      170
                                     =================================

Gross disconnects
    Direct one-way                     (265)   (250)   (238)    (222)
    Direct two-way                      (39)    (32)    (30)     (29)
                                     ---------------------------------
  Total direct                         (304)   (282)   (268)    (251)
                                     ---------------------------------
    Indirect one-way                    (92)    (70)    (58)     (68)
    Indirect two-way                     (8)     (8)    (10)      (4)
                                     ---------------------------------
  Total indirect                       (100)    (78)    (68)     (72)
                                     ---------------------------------
Total gross disconnects                (404)   (360)   (336)    (323)
                                     =================================

Net gain (loss)
    Direct one-way                     (157)   (131)   (118)    (111)
    Direct two-way                      (24)    (17)    (15)     (12)
                                     ---------------------------------
  Total direct                         (181)   (148)   (133)    (123)
                                     ---------------------------------
    Indirect one-way                    (68)    (52)    (34)     (32)
    Indirect two-way                     (4)     (3)     (5)       1
                                     ---------------------------------
  Total indirect                        (72)    (55)    (39)     (31)
                                     ---------------------------------
Total net change                       (253)   (203)   (172)    (154)
                                     =================================

Ending units in service
    Direct one-way                    3,678   3,547   3,429    3,318
    Direct two-way                      324     307     292      280
                                     ---------------------------------
  Total direct                        4,002   3,854   3,721    3,598
                                     ---------------------------------
    Indirect one-way                    535     483     449      417
    Indirect two-way                     97      94      89       90
                                     ---------------------------------
  Total indirect                        632     577     538      507
                                     ---------------------------------
Total ending units in service         4,634   4,431   4,259    4,105
                                     =================================




                                        For the three months ended
                                    ----------------------------------
                                      3/31/07 6/30/07 9/30/07 12/31/07
                                      ------- ------- ------- --------
Units in service
------------------------------------

Beginning units in service
    Direct one-way                     3,318   3,179   3,071    2,961
    Direct two-way                       280     263     245      232
                                    ------------------------- --------
  Total direct                         3,598   3,442   3,316    3,193
                                    ------------------------- --------
    Indirect one-way                     417     378     346      330
    Indirect two-way                      90      92      95       97
                                    ------------------------- --------
  Total indirect                         507     470     441      427
                                    ------------------------- --------
Total beginning units in service       4,105   3,912   3,757    3,620
                                    ========================= ========

Gross placements
    Direct one-way                        91     112     107       81
    Direct two-way                        12      14      13       10
                                    ------------------------- --------
  Total direct                           103     126     120       91
                                    ------------------------- --------
    Indirect one-way                      19      25      35       29
    Indirect two-way                       8       8       7        7
                                    ------------------------- --------
  Total indirect                          27      33      42       36
                                    ------------------------- --------
Total gross placements                   130     159     162      127
                                    ========================= ========

Gross disconnects
    Direct one-way                      (230)   (220)   (217)    (188)
    Direct two-way                       (29)    (32)    (26)     (21)
                                    ------------------------- --------
  Total direct                          (259)   (252)   (243)    (209)
                                    ------------------------- --------
    Indirect one-way                     (58)    (57)    (51)     (47)
    Indirect two-way                      (6)     (5)     (5)      (6)
                                    ------------------------- --------
  Total indirect                         (64)    (62)    (56)     (53)
                                    ------------------------- --------
Total gross disconnects                 (323)   (314)   (299)    (262)
                                    ========================= ========

Net gain (loss)
    Direct one-way                      (139)   (108)   (110)    (107)
    Direct two-way                       (17)    (18)    (13)     (11)
                                    ------------------------- --------
  Total direct                          (156)   (126)   (123)    (118)
                                    ------------------------- --------
    Indirect one-way                     (39)    (32)    (16)     (18)
    Indirect two-way                       2       3       2        1
                                    ------------------------- --------
  Total indirect                         (37)    (29)    (14)     (17)
                                    ------------------------- --------
Total net change                        (193)   (155)   (137)    (135)
                                    ========================= ========

Ending units in service
    Direct one-way                     3,179   3,071   2,961    2,854
    Direct two-way                       263     245     232      221
                                    ------------------------- --------
  Total direct                         3,442   3,316   3,193    3,075
                                    ------------------------- --------
    Indirect one-way                     378     346     330      312
    Indirect two-way                      92      95      97       98
                                    ------------------------- --------
  Total indirect                         470     441     427      410
                                    ------------------------- --------
Total ending units in service          3,912   3,757   3,620    3,485
                                    ========================= ========


(a) Slight variations in totals are due to rounding.

                          USA MOBILITY, INC.
            AVERAGE REVENUE PER UNIT (ARPU) AND CHURN (a)
                             (unaudited)



                                        For the three months ended
                                     ---------------------------------
                                     3/31/06 6/30/06 9/30/06 12/31/06
                                     ------- ------- ------- ---------

ARPU
------------------------------------
  Direct one-way                     $ 8.17  $ 8.06  $ 7.95   $ 7.86
  Direct two-way                      23.61   23.75   23.27    23.61
                                     ---------------------------------
Total direct                           9.44    9.32    9.16     9.09

  Indirect one-way                     4.53    4.59    4.49     4.56
  Indirect two-way                     6.93    6.99    6.53     6.63
                                     ---------------------------------
Total indirect                         4.89    4.97    4.82     4.92

  Total one-way                        7.69    7.63    7.54     7.49
  Total two-way                       19.85   19.87   19.35    19.55
                                     ---------------------------------
Total paging ARPU                    $ 8.80  $ 8.74  $ 8.60   $ 8.57
                                     ---------------------------------



Gross disconnect rate (b)
------------------------------------
  Direct one-way                       -6.9%   -6.8%   -6.7%    -6.5%
  Direct two-way                      -11.1%   -9.8%   -9.8%    -9.8%
                                     ---------------------------------
Total direct                           -7.3%   -7.0%   -7.0%    -6.7%

  Indirect one-way                    -15.3%  -13.1%  -12.0%   -15.1%
  Indirect two-way                     -7.6%   -8.2%  -10.6%    -4.7%
                                     ---------------------------------
Total indirect                        -14.2%  -12.4%  -11.8%   -13.3%

  Total one-way                        -8.1%   -7.6%   -7.3%    -7.5%
  Total two-way                       -10.2%   -9.5%  -10.0%    -8.6%
                                     ---------------------------------
Total paging gross disconnect rate     -8.3%   -7.8%   -7.6%    -7.6%
                                     ---------------------------------



Net gain / loss rate (c)
------------------------------------
  Direct one-way                       -4.1%   -3.6%   -3.3%    -3.2%
  Direct two-way                       -6.8%   -5.2%   -4.9%    -4.1%
                                     ---------------------------------
Total direct                           -4.3%   -3.7%   -3.5%    -3.3%

  Indirect one-way                    -11.3%   -9.8%   -7.1%    -7.1%
  Indirect two-way                     -3.6%   -2.9%   -4.9%     1.0%
                                     ---------------------------------
Total indirect                        -10.2%   -8.7%   -6.8%    -5.7%

  Total one-way                        -5.1%   -4.3%   -3.8%    -3.7%
  Total two-way                        -6.1%   -4.7%   -4.9%    -2.9%
                                     ---------------------------------
Total paging net gain / loss rate      -5.2%   -4.4%   -3.9%    -3.6%
                                     ---------------------------------




                                        For the three months ended
                                    ----------------------------------
                                      3/31/07 6/30/07 9/30/07 12/31/07
                                      ------- ------- ------- --------

ARPU
------------------------------------
  Direct one-way                      $ 7.96  $ 7.87  $ 7.98   $ 7.93
  Direct two-way                       23.91   24.02   24.17    24.06
                                    ------------------------- --------
Total direct                            9.18    9.08    9.16     9.09

  Indirect one-way                      4.45    4.12    4.35     4.11
  Indirect two-way                      6.30    6.10    5.30     8.20
                                    ------------------------- --------
Total indirect                          4.79    4.53    4.56     5.06

  Total one-way                         7.57    7.48    7.61     7.55
  Total two-way                        19.46   19.18   18.74    19.30
                                    ------------------------- --------
Total paging ARPU                     $ 8.65  $ 8.54  $ 8.62   $ 8.62
                                    ------------------------- --------



Gross disconnect rate (b)
------------------------------------
  Direct one-way                        -6.9%   -6.9%   -7.1%    -6.4%
  Direct two-way                       -10.4%  -12.2%  -10.5%    -9.1%
                                    ------------------------- --------
Total direct                            -7.2%   -7.3%   -7.3%    -6.6%

  Indirect one-way                     -14.0%  -15.0%  -14.7%   -14.1%
  Indirect two-way                      -6.2%   -5.9%   -5.7%    -6.7%
                                    ------------------------- --------
Total indirect                         -12.6%  -13.2%  -12.8%   -12.5%

  Total one-way                         -7.7%   -7.8%   -7.8%    -7.1%
  Total two-way                         -9.4%  -10.4%   -9.2%    -8.4%
                                    ------------------------- --------
Total paging gross disconnect rate      -7.9%   -8.0%   -8.0%    -7.2%
                                    ------------------------- --------



Net gain / loss rate (c)
------------------------------------
  Direct one-way                        -4.2%   -3.4%   -3.6%    -3.6%
  Direct two-way                        -5.9%   -6.9%   -5.3%    -4.6%
                                    ------------------------- --------
Total direct                            -4.3%   -3.6%   -3.7%    -3.7%

  Indirect one-way                      -9.5%   -8.5%   -4.6%    -5.4%
  Indirect two-way                       2.5%    3.2%    2.1%     0.8%
                                    ------------------------- --------
Total indirect                          -7.3%   -6.2%   -3.2%    -4.0%

  Total one-way                         -4.8%   -3.9%   -3.7%    -3.8%
  Total two-way                         -3.9%   -4.2%   -3.3%    -3.0%
                                    ------------------------- --------
Total paging net gain / loss rate       -4.7%   -4.0%   -3.7%    -3.7%
                                    ------------------------- --------


(a) Slight variations in totals are due to rounding.
(b) Gross disconnect rate is current period disconnected units divided
 by prior period ending units in service.
(c) Net gain / loss rate is net current period placements and
 disconnected units in service divided by prior period ending units in
 service.

                          USA MOBILITY, INC.
           SUPPLEMENTAL INFORMATION BY CUSTOMER SEGMENT (a)
                             (unaudited)



                                        For the three months ended
                                     ---------------------------------
                                     3/31/06 6/30/06 9/30/06 12/31/06
                                     ------- ------- ------- ---------

Gross placement rate (b)
  Healthcare                            3.8%    4.5%    4.1%     4.2%
  Government                            2.2%    2.3%    2.6%     2.1%
  Large enterprise                      2.6%    3.0%    3.8%     3.9%
  Other                                 2.7%    3.0%    3.3%     3.1%
                                     ---------------------------------
Total direct                            2.9%    3.3%    3.5%     3.4%
Total indirect                          4.0%    3.7%    5.1%     7.8%
                                     ---------------------------------
Total                                   3.1%    3.4%    3.7%     4.0%
                                     =================================

Gross disconnect rate (b)
  Healthcare                           -4.6%   -4.7%   -5.3%    -4.6%
  Government                           -5.7%   -6.3%   -5.9%    -5.8%
  Large enterprise                     -7.7%   -7.4%   -6.9%    -6.8%
  Other                               -10.3%   -9.5%   -9.3%    -9.5%
                                     ---------------------------------
Total direct                           -7.3%   -7.0%   -7.0%    -6.7%
Total indirect                        -14.2%  -12.4%  -11.8%   -13.3%
                                     ---------------------------------
Total                                  -8.3%   -7.8%   -7.6%    -7.6%
                                     =================================

Net loss rate (b)
  Healthcare                           -0.7%   -0.2%   -1.1%    -0.4%
  Government                           -3.5%   -4.1%   -3.3%    -3.6%
  Large enterprise                     -5.1%   -4.3%   -3.0%    -2.9%
  Other                                -7.5%   -6.6%   -6.1%    -6.4%
                                     ---------------------------------
Total direct                           -4.3%   -3.7%   -3.5%    -3.3%
Total indirect                        -10.2%   -8.7%   -6.8%    -5.7%
                                     ---------------------------------
Total                                  -5.2%   -4.4%   -3.9%    -3.6%
                                     =================================

End of period units in service % of
 total (b)
  Healthcare                           29.0%   30.5%   31.5%    32.5%
  Government                           16.4%   16.4%   16.6%    16.5%
  Large enterprise                     10.2%   10.2%   10.1%    10.3%
  Other                                30.8%   29.9%   29.2%    28.3%
                                     ---------------------------------
Total direct                           86.4%   87.0%   87.4%    87.6%
Total indirect                         13.6%   13.0%   12.6%    12.4%
                                     ---------------------------------
Total                                 100.0%  100.0%  100.0%   100.0%
                                     =================================




                                        For the three months ended
                                    ----------------------------------
                                      3/31/07 6/30/07 9/30/07 12/31/07
                                      ------- ------- ------- --------

Gross placement rate (b)
  Healthcare                             3.6%    4.8%    4.5%     3.6%
  Government                             2.2%    2.5%    2.5%     2.0%
  Large enterprise                       2.7%    3.0%    2.9%     2.7%
  Other                                  2.6%    3.2%    3.4%     2.4%
                                    ------------------------- --------
Total direct                             2.9%    3.7%    3.6%     2.8%
Total indirect                           5.3%    6.9%    9.6%     8.5%
                                    ------------------------- --------
Total                                    3.2%    4.1%    4.3%     3.5%
                                    ========================= ========

Gross disconnect rate (b)
  Healthcare                            -4.6%   -5.0%   -5.6%    -5.0%
  Government                            -5.8%   -6.4%   -6.8%    -6.0%
  Large enterprise                      -8.4%   -9.3%   -7.6%    -6.9%
  Other                                -10.9%  -10.5%  -10.5%    -9.5%
                                    ------------------------- --------
Total direct                            -7.2%   -7.3%   -7.3%    -6.6%
Total indirect                         -12.6%  -13.2%  -12.8%   -12.5%
                                    ------------------------- --------
Total                                   -7.9%   -8.0%   -8.0%    -7.2%
                                    ========================= ========

Net loss rate (b)
  Healthcare                            -1.1%   -0.2%   -1.0%    -1.3%
  Government                            -3.6%   -3.8%   -4.3%    -4.0%
  Large enterprise                      -5.7%   -6.2%   -4.6%    -4.3%
  Other                                 -8.3%   -7.2%   -7.2%    -7.1%
                                    ------------------------- --------
Total direct                            -4.3%   -3.6%   -3.7%    -3.7%
Total indirect                          -7.3%   -6.2%   -3.2%    -4.0%
                                    ------------------------- --------
Total                                   -4.7%   -4.0%   -3.7%    -3.7%
                                    ========================= ========

End of period units in service % of
 total (b)
  Healthcare                            33.6%   35.0%   36.2%    37.1%
  Government                            17.9%   18.0%   17.8%    17.8%
  Large enterprise                      13.8%   13.6%   13.5%    13.5%
  Other                                 22.6%   21.7%   20.7%    19.8%
                                    ------------------------- --------
Total direct                            88.0%   88.3%   88.2%    88.2%
Total indirect                          12.0%   11.7%   11.8%    11.8%
                                    ------------------------- --------
Total                                  100.0%  100.0%  100.0%   100.0%
                                    ========================= ========


(a) Slight variations in totals are due to rounding.
(b) Changes in the classification of units in service are reflected in
 the quarter when such changes are identified. Such changes are then
 appropriately reflected in calculating the gross placement, gross
 disconnet and net loss rates.

                          USA MOBILITY, INC.
   SUPPLEMENTAL INFORMATION - DIRECT UNITS IN SERVICE AND CELLULAR
                            ACTIVATIONS (a)
                             (unaudited)


                                   For the three months ended
                           -------------------------------------------
                             3/31/06   6/30/06   9/30/06   12/31/06
                            ------------------------------------------

Account size ending units
 in service (000's)
  1 to 3 units                   358       327       300        275
  4 to 10 units                  203       188       175        163
  11 to 50 units                 489       456       426        398
  51 to 100 units                265       249       238        226
  101 to 1,000 units           1,068     1,027       999        967
  greater than 1,000 units     1,619     1,607     1,583      1,568
                            ------------------------------------------
Total                          4,002     3,854     3,721      3,598
                            ==========================================

End of period units in
 service % of total direct
  1 to 3 units                   8.9%      8.5%      8.1%       7.7%
  4 to 10 units                  5.1%      4.9%      4.7%       4.5%
  11 to 50 units                12.2%     11.8%     11.4%      11.1%
  51 to 100 units                6.6%      6.5%      6.4%       6.3%
  101 to 1,000 units            26.7%     26.6%     26.9%      26.9%
  greater than 1,000 units      40.5%     41.7%     42.5%      43.6%
                            ------------------------------------------
Total                          100.0%    100.0%    100.0%     100.0%
                            ==========================================

Account size net loss rate
  1 to 3 units                  -7.8%     -8.7%     -8.0%      -8.3%
  4 to 10 units                 -8.2%     -7.5%     -6.9%      -6.6%
  11 to 50 units                -7.2%     -6.8%     -6.5%      -6.6%
  51 to 100 units               -7.0%     -6.2%     -4.2%      -5.2%
  101 to 1,000 units            -5.8%     -3.8%     -2.7%      -3.2%
  greater than 1,000 units      -5.0%     -0.7%     -1.6%      -0.9%
                            ------------------------------------------
Total                           -4.3%     -3.7%     -3.5%      -3.3%
                            ==========================================

Account size ARPU
  1 to 3 units              $  14.02  $  14.14  $  14.07  $   14.18
  4 to 10 units                13.02     13.08     12.99      13.07
  11 to 50 units               10.88     10.81     10.72      10.76
  51 to 100 units               9.59      9.53      9.39       9.30
  101 to 1,000 units            8.34      8.29      8.21       8.18
  greater than 1,000 units      8.18      8.05      7.89       7.91
                            ------------------------------------------
Total                       $   9.44  $   9.32  $   9.16  $    9.09
                            ==========================================


Cellular revenue
Number of activations          6,829     6,969     6,374      5,818
                            ==========================================
Revenue from cellular
 services (000's)           $  2,026  $  2,096  $  1,728  $   1,877
                            ==========================================



                                    For the three months ended
                            ------------------------------------------
                               3/31/07   6/30/07   9/30/07   12/31/07
                             ------------------------------ ----------

Account size ending units in
 service (000's)
  1 to 3 units                     251       232       216        200
  4 to 10 units                    150       139       129        120
  11 to 50 units                   368       344       319        298
  51 to 100 units                  215       200       189        176
  101 to 1,000 units               924       898       856        827
  greater than 1,000 units       1,534     1,503     1,483      1,454
                             ------------------------------ ----------
Total                            3,442     3,316     3,193      3,075
                             ============================== ==========

End of period units in
 service % of total direct
  1 to 3 units                     7.3%      7.0%      6.8%       6.5%
  4 to 10 units                    4.4%      4.2%      4.1%       3.9%
  11 to 50 units                  10.7%     10.4%     10.0%       9.7%
  51 to 100 units                  6.2%      6.0%      5.9%       5.7%
  101 to 1,000 units              26.9%     27.1%     26.8%      26.9%
  greater than 1,000 units        44.6%     45.3%     46.5%      47.3%
                             ------------------------------ ----------
Total                            100.0%    100.0%    100.0%     100.0%
                             ============================== ==========

Account size net loss rate
  1 to 3 units                    -9.0%     -7.6%     -6.6%      -7.6%
  4 to 10 units                   -7.9%     -7.6%     -7.0%      -7.5%
  11 to 50 units                  -7.5%     -6.4%     -7.3%      -6.6%
  51 to 100 units                 -4.9%     -6.9%     -5.7%      -6.4%
  101 to 1,000 units              -4.4%     -2.8%     -4.7%      -3.3%
  greater than 1,000 units        -2.2%     -2.0%     -1.3%      -2.0%
                             ------------------------------ ----------
Total                             -4.3%     -3.6%     -3.7%      -3.7%
                             ============================== ==========

Account size ARPU
  1 to 3 units                $  14.68  $  14.67  $  14.90  $   14.83
  4 to 10 units                  13.41     13.40     13.68      13.62
  11 to 50 units                 10.95     10.93     11.15      11.07
  51 to 100 units                 9.44      9.48      9.74       9.74
  101 to 1,000 units              8.24      8.24      8.35       8.38
  greater than 1,000 units        7.93      7.80      7.86       7.81
                             ------------------------------ ----------
Total                         $   9.18  $   9.08  $   9.16  $    9.09
                             ============================== ==========


Cellular revenue
Number of activations            5,450     8,046     5,579      5,070
                             ============================== ==========
Revenue from cellular
 services (000's)             $  2,087  $  2,497  $  2,035  $   1,705
                             ============================== ==========


(a) Slight variations in totals are due to rounding.

                          USA MOBILITY, INC.
     CONSOLIDATED OPERATING EXPENSES SUPPLEMENTAL INFORMATION (a)
                     (unaudited and in thousands)


                                      For the three months ended
                                --------------------------------------
                                  3/31/06  6/30/06  9/30/06 12/31/06
                                 -------------------------------------
Cost of products sold                $786   $1,169   $1,184     $698
                                 -------------------------------------

Service, rental and maintenance
  Site rent                        26,099   25,021   24,314   24,204
  Telecommunications                9,099    8,480    7,343    7,185
  Payroll and related               7,046    6,578    6,517    6,136
  Stock based compensation             81       83       78       78
  Other                             5,767    4,607    4,237    4,167
                                 -------------------------------------
Total service, rental and
 maintenance                       48,092   44,769   42,489   41,770
                                 -------------------------------------

Selling and marketing
  Payroll and related               7,709    7,317    6,996    6,902
  Commissions                       2,226    2,373    2,407    2,577
  Stock based compensation            171      166      178       55
  Other                               953    1,262    1,348    1,262
                                 -------------------------------------
Total selling and marketing        11,059   11,118   10,929   10,796
                                 -------------------------------------

General and administrative
  Payroll and related              12,330   11,412    9,517    9,287
  Stock based compensation            431      461      484      462
  Bad debt                          1,790    1,705    2,035    1,975
  Facility rent                     4,104    3,973    3,468    3,408
  Telecommunications                2,248    1,982    1,858    1,714
  Outside services                  6,419    5,631    6,162    7,122
  Taxes, licenses and permits       4,149    2,708    3,036    (501)
  Other                             4,671    4,336    4,434    5,066
                                 -------------------------------------
Total general and administrative   36,142   32,208   30,994   28,533
                                 -------- -------- -------- --------

Severance and restructuring           170      321      682    3,413
Depreciation, amortization and
 accretion                         18,794   18,900   18,361   17,244

                                 -------------------------------------
Operating expenses               $115,043 $108,485 $104,639 $102,454
                                 =====================================

Capital expenses                   $4,424   $4,595   $5,152   $6,819


                                        For the three months ended
                                    ----------------------------------
                                      3/31/07 6/30/07 9/30/07 12/31/07
                                     ------------------------ --------
Cost of products sold                    $687  $1,508  $2,435   $1,603
                                     ------------------------ --------

Service, rental and maintenance
  Site rent                            22,284  22,115  20,705   19,602
  Telecommunications                    7,058   6,622   5,289    6,356
  Payroll and related                   6,488   6,657   6,871    6,878
  Stock based compensation                 31      30      26       25
  Other                                 3,172   3,932   3,855    3,934
                                     ------------------------ --------
Total service, rental and
 maintenance                           39,033  39,356  36,746   36,795
                                     ------------------------ --------

Selling and marketing
  Payroll and related                   6,740   6,259   5,984    5,517
  Commissions                           2,170   2,386   2,140    2,056
  Stock based compensation                 93      91      67       52
  Other                                 1,239   1,239   1,700    1,095
                                     ------------------------ --------
Total selling and marketing            10,242   9,975   9,891    8,720
                                     ------------------------ --------

General and administrative
  Payroll and related                   9,560   9,343   9,487    8,744
  Stock based compensation                304     299     214      180
  Bad debt                              1,402   1,075     854    1,015
  Facility rent                         2,947   3,066   2,614    2,177
  Telecommunications                    1,764   1,526   1,402    1,366
  Outside services                      5,504   5,222   5,136    4,854
  Taxes, licenses and permits           2,316    (20)   1,815    2,218
  Other                                 2,651   2,786   2,084    2,762
                                     ------------------------ --------
Total general and administrative       26,448  23,297  23,606   23,316
                                     -------- ------- ------- --------

Severance and restructuring                17       -   1,177    5,235
Depreciation, amortization and
 accretion                             13,318  12,450  12,048   10,872

                                     ------------------------ --------
Operating expenses                    $89,745 $86,586 $85,903  $86,541
                                     ======================== ========

Capital expenses                       $5,086  $3,525  $4,528   $5,184


(a) Slight variations in totals are due to rounding.

                          USA MOBILITY, INC.
              CONDENSED CONSOLIDATED BALANCE SHEETS (a)
                            (in thousands)

                                                    12/31/06  12/31/07
                                                   --------- ---------

Assets
  Current assets:
    Cash and cash equivalents                      $  66,507 $  64,542
    Accounts receivable, net                          26,364    28,044
    Prepaid expenses and other                        12,294     8,608
    Deferred income tax assets, net                   18,399     8,267
                                                   --------- ---------
  Total current assets                               123,564   109,461
  Property and equipment, net                         91,562    75,669
  Goodwill                                           159,438   188,170
  Intangible assets, net                              26,339    16,929
  Deferred income tax assets, net                    180,244    86,219
  Other assets                                         7,067     7,634
                                                   --------- ---------
Total assets                                       $ 588,214 $ 484,082
                                                   ========= =========

Liabilities and stockholders' equity
  Current liabilities:
    Accounts payable and accrued liabilities       $  63,979 $  53,418
    Distributions payable                                435        93
    Customer deposits                                  2,250     1,592
    Deferred revenue                                  16,194    12,059
                                                   --------- ---------
  Total current liabilities                           82,858    67,162
  Other long-term liabilities                         29,384    43,352
                                                   --------- ---------
Total liabilities                                    112,242   110,514
                                                   --------- ---------
Stockholders' equity:
  Preferred stock                                          -         -
  Common stock                                             3         3
  Additional paid-in capital                         475,969   373,565
  Retained earnings                                        -         -
                                                   --------- ---------
Total stockholders' equity                           475,972   373,568
                                                   --------- ---------
Total liabilities and stockholders' equity         $ 588,214 $ 484,082
                                                   ========= =========

(a) Slight variations in totals are due to rounding.

                          USA MOBILITY, INC.
         CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a)
                            (in thousands)

                                                 For the twelve months
                                                         ended
                                                 ---------------------
                                                  12/31/06   12/31/07
                                                 ---------- ----------

Cash flows from operating activities:
  Net income (loss)                              $  40,181  $  (5,198)
  Adjustments to reconcile net income to net cash
   provided by operating activities:
    Depreciation, amortization and accretion        73,299     48,688
    Deferred income tax expense                     16,197     91,995
    Amortization of stock based compensation         2,728      1,412
    Provisions for doubtful accounts, service
     credits and other                              17,204      8,561
    Non-cash tax accrual adjustments                (3,467)    (6,789)
    Loss/(gain) on disposals of property and
     equipment                                         601       (169)
  Changes in assets and liabilities:
    Accounts receivable                             (6,816)   (10,240)
    Prepaid expenses and other                        (395)     2,706
    Intangibles and other long-term assets          (2,746)      (582)
    Accounts payable and accrued liabilities           816     (6,538)
    Customer deposits and deferred revenue          (2,584)    (4,793)
    Other long-term liabilities                     12,224     (4,768)
                                                 ---------- ----------
Net cash provided by operating activities          147,242    114,285
                                                 ---------- ----------

Cash flows from investing activities:
  Purchases of property and equipment              (20,990)   (18,323)
  Proceeds from disposals of property and
   equipment                                           200        323
  Receipts from long-term notes receivable           1,425          -
                                                 ---------- ----------
Net cash used in investing activities              (19,365)   (18,000)
                                                 ---------- ----------

Cash flows from financing activities:
  Repayment of long-term debt                          (13)         -
  Cash distributions to stockholders               (98,904)   (98,250)
                                                 ---------- ----------
Net cash used in financing activities              (98,917)   (98,250)
                                                 ---------- ----------


Net increase (decrease) in cash and cash
 equivalents                                        28,960     (1,965)
Cash and cash equivalents, beginning of period      37,547     66,507
                                                 ---------- ----------
Cash and cash equivalents, end of period         $  66,507  $  64,542
                                                 ========== ==========

Supplemental disclosure:
  Interest paid                                  $      34  $      13
                                                 ========== ==========
  Income taxes paid (state and local)            $      49  $      70
                                                 ========== ==========

(a) Slight variations in totals are due to rounding.

                          USA MOBILITY, INC.
         CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (a)
          (in thousands, except share and per share amounts)

                                                For the year ended
                                                    December 31,
                                             -------------------------
                                                 2006         2007
                                             ------------ ------------

Revenue:
  Paging service                             $   464,194  $   389,469
  Cellular                                         7,727        8,324
  Product sales                                   21,556       22,204
  Other                                            4,217        4,627
                                             ------------ ------------
Total revenue                                    497,694      424,624
                                             ------------ ------------

Operating expenses:
  Cost of products sold                            3,837        6,233
  Service, rental and maintenance                177,120      151,930
  Selling and marketing                           43,902       38,828
  General and administrative                     127,877       96,667
  Severance and restructuring                      4,586        6,429
  Depreciation, amortization and accretion        73,299       48,688
                                             ------------ ------------
Total operating expenses                         430,621      348,775
                                             ------------ ------------
   % of total revenue                               86.5%        82.1%

                                             ------------ ------------
Operating income                                  67,073       75,849
                                             ------------ ------------
   % of total revenue                               13.5%        17.9%

  Interest income, net                             3,868        3,448
  Other income, net                                  800        2,150
                                             ------------ ------------
Income before income tax expense                  71,741       81,447
  Income tax expense                              31,560       86,645
                                             ------------ ------------
Net income (loss)                            $    40,181  $    (5,198)
                                             ============ ============

Basic net income (loss) per common share     $      1.47  $     (0.19)
                                             ============ ============
Diluted net income (loss) per common share   $      1.46  $     (0.19)
                                             ============ ============

Basic weighted average common shares
 outstanding                                  27,399,811   27,442,444
                                             ============ ============
Diluted weighted average common shares
 outstanding                                  27,580,866   27,442,444
                                             ============ ============


Reconciliation of operating income to EBITDA
 (b):
Operating income                             $    67,073  $    75,849
Add back: Depreciation, amortization and
 accretion                                        73,299       48,688
                                             ------------ ------------
EBITDA                                       $   140,372  $   124,537
                                             ============ ============
   % of total revenue                               28.2%        29.3%

(a) Slight variations in totals are due to rounding.
(b) EBITDA or earnings before interest, taxes, depreciation,
 amortization and accretion is a non-GAAP measure and is presented for
 analytical purposes only.

SOURCE: USA Mobility, Inc.

For USA Mobility, Inc.
Bob Lougee, 703-721-3080