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USA Mobility Reports Second Quarter Operating Results; Board Declares Quarterly Cash Distribution; $50 Million Stock Repurchase Program Announced
Revenue and Expense Trends Continue to Improve; Operating Cash Flow Margins Reach New Highs
ALEXANDRIA, Va., Jul 31, 2008 (BUSINESS WIRE) -- USA Mobility, Inc. (Nasdaq: USMO), a leading provider of wireless messaging and communications services, today announced operating results for the second quarter ended June 30, 2008.

Total revenue for the second quarter was $92.1 million, compared to $94.8 in the first quarter and $107.5 million in the second quarter of 2007. EBITDA (earnings before interest, taxes, depreciation, amortization, accretion and goodwill impairment) in the second quarter totaled $30.6 million, compared to $29.9 million in the first quarter and $33.3 million in the second quarter of 2007. Net income in the second quarter was $10.3 million, or $0.37 per fully diluted share, compared to net income of $13.0 million, or $0.47 per fully diluted share, in the year-earlier quarter.

Second quarter results included:

-- EBITDA margin (or EBITDA as a percentage of revenue) increased to 33.2 percent in the second quarter, compared to 31.6 percent in the first quarter and 31.0 percent in the second quarter of 2007, reaching its highest level since USA Mobility was formed in 2004.

-- The quarterly rate of revenue erosion improved to 2.8 percent, compared to 5.4 percent in the first quarter and 3.7 percent in the year-earlier quarter. The annual rate of revenue erosion improved to 14.3 percent from 15.0 percent in the first quarter and 15.5 percent in the second quarter of 2007.

-- Total paging ARPU (average revenue per unit) was $8.54 in the second quarter, an increase from $8.49 in the first quarter and equal to $8.54 in the year-earlier quarter.

-- Units in service totaled 3,176,000 at June 30, 2008, compared to 3,333,000 at March 31, 2008. Net unit loss in the second quarter was 157,000, compared to 152,000 in the first quarter and 155,000 in the second quarter of 2007.

-- The annual rate of subscriber erosion was 15.5 percent, compared to 14.8 percent in the first quarter and 15.2 percent in the year-earlier quarter. The quarterly rate of subscriber loss was 4.7 percent, compared to 4.4 percent in first quarter and 4.0 percent in the second quarter of 2007.

-- Operating expenses (excluding depreciation, amortization, accretion and goodwill impairment) totaled $61.5 million in the second quarter, a reduction of 17.1 percent from $74.1 million in the second quarter of 2007. Operating expenses declined $12.7 million since the second quarter of 2007 and, as a percentage of revenue, were at their lowest level since 2004.

-- Capital expenses were $3.9 million, compared to $4.0 million in the first quarter.

-- The Company's cash balance at June 30, 2008 was $85.8 million.

"We continued to make excellent progress during the second quarter," said Vincent D. Kelly, president and chief executive officer, "as the Company's results met or exceeded the majority of our performance objectives and were largely consistent with the financial guidance we provided earlier this year. Our annual rate of revenue erosion showed further improvement, average revenue per unit (ARPU) increased in the quarter, operating expenses declined and our cash flow margins reached record highs. Although overall subscriber cancellations remained higher than expected," Kelly added, "we continued to see lower net unit loss rates in our core market segment of Healthcare, which now represents 40.0 percent of our customer base."

The Company's Board of Directors declared a regular cash distribution of $0.25 per share, payable on September 11, 2008 to stockholders of record on August 14, 2008. The Company expects the September cash distribution, a total of approximately $6.8 million, to be paid as a return of capital. The Company's Board of Directors also adopted a stock repurchase plan to buy back up to $50 million of USA Mobility common stock. The repurchase plan will commence on or about August 5, 2008 and will continue for up to twelve months. Credit Suisse Securities (USA) LLC will administer the stock repurchase program.

Commenting on the Company's capital distribution policy going forward, Kelly stated: "While we revised our cash distribution rate in the second quarter to better reflect projected cash flow over the next several years, our commitment to return cash to our stockholders has not changed. We recognize that notwithstanding our excellent current results, continued levels of subscriber erosion will continue to put pressure on our future operating margins and our revised cash distribution rate takes that potential into effect."

Kelly said the Company decided to move forward with a stock repurchase program at this time after a ruling on July 8, 2008 by the United States Court of Appeals for the DC Circuit delayed a final decision on its appeal of the Federal Communications Commission's Back-Up Power Order (Order). The Court held the appeal in abeyance pending approval by the Office of Management and Budget (OMB) of new paperwork requirements associated with the Order, a process that is expected to postpone a final ruling in the case for at least several months. "Although we were disappointed the Court did not vacate the Order at this time," Kelly said, "we believe it ultimately will do so based on the merits of our appeal. In the meantime, the delay serves to reduce the potential cost of compliance as we continue to eliminate transmitters in connection with our long-term network rationalization program."

Thomas L. Schilling, chief operating officer and chief financial officer, said the Company reported solid financial and operating results for the quarter. "The improved rate of revenue erosion was largely the result of retail price adjustments we made during the quarter," he said, "while a continued emphasis on cost reduction contributed to our higher EBITDA and cash flow margins. Operating expenses (excluding depreciation, amortization, accretion and goodwill impairment) continued to decline due to numerous cost savings programs," Schilling noted, "and are down 17.1 percent from the second quarter of 2007 and well ahead of the 14.3 percent annual rate of revenue erosion."

The Company also revised upward its previously announced financial guidance for 2008 as follows: revenues are now expected to be between $355 million to $360 million, up from the previous guidance of $345 million to $355 million; operating expenses (excluding depreciation, amortization, accretion and goodwill impairment) are now expected to be between $245 million to $250 million, a decrease from the previous range of $250 million to $255 million; while guidance for capital expenses for 2008 remains unchanged at $18 million to $20 million.

USA Mobility plans to host a conference call for investors on its second quarter results at 10:00 a.m. Eastern Time on Friday, August 1, 2008. The dial-in number for the call is 888-600-4885 (toll-free) or 913-312-6685 (toll). The pass code for the call is 9967444. A replay of the call will be available from 2:00 p.m. ET on August 1 until 11:59 p.m. on Friday, August 15. The replay number is 888-203-1112 (toll-free) or 719-457-0820 (toll). The pass code for the replay is 9967444.

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 a majority 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 expectations for 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, our ability to continue to reduce operating expenses and to generate cash from operations, our future capital needs, competitive pricing pressures, competition from both traditional paging services and other wireless communications services, technological improvements in hand-held devices and transmission services offered by our competitors, 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.

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



                                     For the three months ended
                              ----------------------------------------
                                3/31/07      6/30/07      9/30/07
                              ----------------------------------------
                                                         (restated)
Revenues:
  Paging service              $   104,003  $    98,248  $    95,393
  Cellular                          2,087        2,497        2,035
  Product sales                     4,400        5,335        6,851
  Other                             1,052        1,390        1,145
                              ----------------------------------------
Total revenues                    111,542      107,470      105,424
                              ----------------------------------------

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

                              ----------------------------------------
Operating income (loss)            21,797       20,884       19,521
                              ----------------------------------------
   % of total revenues               19.5%        19.4%        18.5%

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

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

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


Reconciliation of operating income (loss) to EBITDA (b):
Operating income (loss)       $    21,797  $    20,884  $    19,521
Add back: depreciation,
 amortization and accretion        13,318       12,450       12,048
Add back: goodwill impairment           -            -            -
                              ----------------------------------------
EBITDA                        $    35,115  $    33,334  $    31,569
                              ========================================
   % of total revenues               31.5%        31.0%        29.9%




                                      For the three months ended
                               ---------------------------------------
                                  12/31/07     3/31/08      6/30/08
                               ---------------------------------------

Revenues:
  Paging service                $    91,825  $    86,773  $    83,360
  Cellular                            1,705        1,859        1,547
  Product sales                       5,618        4,871        5,741
  Other                               1,040        1,255        1,427
                               ---------------------------------------
Total revenues                      100,188       94,758       92,075
                               ---------------------------------------

Operating expenses:
  Cost of products sold               1,603        1,081        1,408
  Service, rental and
   maintenance                       36,795       33,969       31,583
  Selling and marketing               8,720        7,836        7,549
  General and administrative         23,316       21,808       20,782
  Severance and restructuring         5,235          145          153
  Depreciation, amortization
   and accretion                     10,872       12,513       11,674
  Goodwill impairment                     -      188,170            -
                               ---------------------------------------
Total operating expenses             86,541      265,522       73,149
                               ---------------------------------------
   % of total revenues                 86.4%       280.2%        79.4%

                               ---------------------------------------
Operating income (loss)              13,647     (170,764)      18,926
                               ---------------------------------------
   % of total revenues                 13.6%      -180.2%        20.6%

  Interest income, net                  709          578          672
  Other (expense) income, net           802          125          202
                               ---------------------------------------
Income (loss) before income tax
 expense                             15,158     (170,061)      19,800
  Income tax expense                 61,816        7,739        9,528
                               ---------------------------------------
Net income (loss)               $   (46,658) $  (177,800) $    10,272
                               =======================================

Basic net income (loss) per
 common share                   $     (1.70) $     (6.48) $      0.37
                               =======================================
Diluted net income (loss) per
 common share                   $     (1.70) $     (6.48) $      0.37
                               =======================================

Basic weighted average common
 shares outstanding              27,450,035   27,459,068   27,474,156
                               =======================================
Diluted weighted average common
 shares outstanding              27,450,035   27,459,068   27,600,976
                               =======================================


Reconciliation of operating income (loss) to EBITDA (b):
Operating income (loss)         $    13,647  $  (170,764) $    18,926
Add back: depreciation,
 amortization and accretion          10,872       12,513       11,674
Add back: goodwill impairment             -      188,170            -
                               ---------------------------------------
EBITDA                          $    24,519  $    29,919  $    30,600
                               =======================================
   % of total revenues                 24.5%        31.6%        33.2%


(a) Slight variations in totals are due to rounding.
(b) EBITDA or earnings before interest, taxes, depreciation,
 amortization, accretion and goodwill impairment 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
                ------------------------------------------------------
                3/31/07  6/30/07  9/30/07  12/31/07  3/31/08  6/30/08
                ------------------------------------------------------
Units in
 service
---------------

Beginning units in service
    Direct one-
     way          3,318    3,179    3,071     2,961    2,854    2,733
    Direct two-
     way            280      263      245       232      221      206
                ------------------------------------------------------
  Total direct    3,598    3,442    3,316     3,193    3,075    2,939
                ------------------------------------------------------
    Indirect
     one-way        417      378      346       330      312      286
    Indirect
     two-way         90       92       95        97       98      108
                ------------------------------------------------------
  Total
   indirect         507      470      441       427      410      394
                ------------------------------------------------------
Total beginning
 units in
 service          4,105    3,912    3,757     3,620    3,485    3,333
                ======================================================

Gross
 placements
    Direct one-
     way             91      112      107        81       77       90
    Direct two-
     way             12       14       13        10        8       11
                ------------------------------------------------------
  Total direct      103      126      120        91       85      101
                ------------------------------------------------------
    Indirect
     one-way         19       25       35        29       17       22
    Indirect
     two-way          8        8        7         7       16        7
                ------------------------------------------------------
  Total
   indirect          27       33       42        36       33       29
                ------------------------------------------------------
Total gross
 placements         130      159      162       127      118      130
                ======================================================

Gross
 disconnects
    Direct one-
     way           (230)    (220)    (217)     (188)    (199)    (209)
    Direct two-
     way            (29)     (32)     (26)      (21)     (22)     (21)
                ------------------------------------------------------
  Total direct     (259)    (252)    (243)     (209)    (221)    (230)
                ------------------------------------------------------
    Indirect
     one-way        (58)     (57)     (51)      (47)     (44)     (47)
                ------------------------------------------------------
    Indirect
     two-way         (6)      (5)      (5)       (6)      (5)     (10)
                ------------------------------------------------------
  Total
   indirect         (64)     (62)     (56)      (53)     (49)     (57)
                ------------------------------------------------------
Total gross
 disconnects       (323)    (314)    (299)     (262)    (270)    (287)
                ======================================================

Net gain (loss)
    Direct one-
     way           (139)    (108)    (110)     (107)    (122)    (119)
    Direct two-
     way            (17)     (18)     (13)      (11)     (14)     (10)
                ------------------------------------------------------
  Total direct     (156)    (126)    (123)     (118)    (136)    (129)
                ------------------------------------------------------
    Indirect
     one-way        (39)     (32)     (16)      (18)     (27)     (25)
                ------------------------------------------------------
    Indirect
     two-way          2        3        2         1       11       (3)
                ------------------------------------------------------
  Total
   indirect         (37)     (29)     (14)      (17)     (16)     (28)
                ------------------------------------------------------
Total net
 change            (193)    (155)    (137)     (135)    (152)    (157)
                ======================================================

Ending units in
 service
    Direct one-
     way          3,179    3,071    2,961     2,854    2,732    2,614
    Direct two-
     way            263      245      232       221      207      196
                ------------------------------------------------------
  Total direct    3,442    3,316    3,193     3,075    2,939    2,810
                ------------------------------------------------------
    Indirect
     one-way        378      346      330       312      285      261
                ------------------------------------------------------
    Indirect
     two-way         92       95       97        98      109      105
                ------------------------------------------------------
  Total
   indirect         470      441      427       410      394      366
                ------------------------------------------------------
Total ending
 units in
 service          3,912    3,757    3,620     3,485    3,333    3,176
                ======================================================

(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
                      ------------------------------------------------
                      3/31/07 6/30/07 9/30/07 12/31/07 3/31/08 6/30/08
                      ------------------------------------------------
ARPU
----------------------------------------------------------------------
  Direct one-way        $7.96   $7.87   $7.98    $7.93   $7.83   $7.85
  Direct two-way        23.91   24.02   24.17    24.06   23.68   23.90
                      ------------------------------------------------
Total direct             9.18    9.08    9.16     9.09    8.95    8.97

  Indirect one-way       4.45    4.12    4.35     4.11    4.10    4.57
  Indirect two-way       6.30    6.10    5.30     8.20    7.52    7.08
                      ------------------------------------------------
Total indirect           4.79    4.53    4.56     5.06    4.97    5.28

  Total one-way          7.57    7.48    7.61     7.55    7.47    7.54
  Total two-way         19.46   19.18   18.74    19.30   18.44   18.07
                      ------------------------------------------------
Total paging ARPU       $8.65   $8.54   $8.62    $8.62   $8.49   $8.54
                      ------------------------------------------------

Gross disconnect rate (b)
----------------------------------------------------------------------
  Direct one-way        -6.9%   -6.9%   -7.1%    -6.4%   -7.0%   -7.6%
  Direct two-way       -10.4%  -12.2%  -10.5%    -9.1%  -10.2%  -10.4%
                      ------------------------------------------------
Total direct            -7.2%   -7.3%   -7.3%    -6.6%   -7.2%   -7.8%

  Indirect one-way     -14.0%  -15.0%  -14.7%   -14.1%  -13.9%  -16.4%
  Indirect two-way      -6.2%   -5.9%   -5.7%    -6.7%   -5.3%   -8.8%
                      ------------------------------------------------
Total indirect         -12.6%  -13.2%  -12.8%   -12.5%  -11.8%  -14.3%

  Total one-way         -7.7%   -7.8%   -7.8%    -7.1%   -7.7%   -8.5%
  Total two-way         -9.4%  -10.4%   -9.2%    -8.4%   -8.7%   -9.8%
                      ------------------------------------------------
Total paging gross
 disconnect rate        -7.9%   -8.0%   -8.0%    -7.2%   -7.7%   -8.6%
                      ------------------------------------------------



Net gain (loss) rate (c)
----------------------------------------------------------------------
  Direct one-way        -4.2%   -3.4%   -3.6%    -3.6%   -4.3%   -4.3%
  Direct two-way        -5.9%   -6.9%   -5.3%    -4.6%   -6.4%   -5.2%
                      ------------------------------------------------
Total direct            -4.3%   -3.6%   -3.7%    -3.7%   -4.4%   -4.4%

  Indirect one-way      -9.5%   -8.5%   -4.6%    -5.4%   -8.5%   -8.6%
  Indirect two-way       2.5%    3.2%    2.1%     0.8%   11.0%   -2.4%
                      ------------------------------------------------
Total indirect          -7.3%   -6.2%   -3.2%    -4.0%   -3.9%   -6.9%

  Total one-way         -4.8%   -3.9%   -3.7%    -3.8%   -4.7%   -4.8%
  Total two-way         -3.9%   -4.2%   -3.3%    -3.0%   -1.1%   -4.2%
                      ------------------------------------------------
Total paging net gain
 (loss) rate            -4.7%   -4.0%   -3.7%    -3.7%   -4.4%   -4.7%
                      ------------------------------------------------

(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 MARKET SEGMENT (a)
                             (unaudited)

                                For the three months ended
                    --------------------------------------------------
                    3/31/07 6/30/07 9/30/07 12/31/07 3/31/08 6/30/08
                    --------------------------------------------------

Gross placement
 rate (b)
  Healthcare            3.6%    4.8%    4.5%     3.6%    3.3%     4.8%
  Government            2.2%    2.5%    2.5%     2.0%    2.2%     2.1%
  Large enterprise      2.7%    3.0%    2.9%     2.7%    2.4%     2.3%
  Other                 2.6%    3.2%    3.4%     2.4%    2.5%     2.6%
                    --------------------------------------------------
Total direct            2.9%    3.7%    3.6%     2.8%    2.8%     3.4%
Total indirect          5.3%    6.9%    9.6%     8.5%    8.0%     7.4%
                    --------------------------------------------------
Total                   3.2%    4.1%    4.3%     3.5%    3.4%     3.9%
                    ==================================================

Gross disconnect
 rate (b)
  Healthcare           -4.6%   -5.0%   -5.6%    -5.0%   -5.1%    -5.8%
  Government           -5.8%   -6.4%   -6.8%    -6.0%   -6.7%    -8.5%
  Large enterprise     -8.4%   -9.3%   -7.6%    -6.9%   -8.6%    -9.2%
  Other               -10.9%  -10.5%  -10.5%    -9.5%  -10.7%   -10.5%
                    --------------------------------------------------
Total direct           -7.2%   -7.3%   -7.3%    -6.6%   -7.2%    -7.8%
Total indirect        -12.6%  -13.2%  -12.8%   -12.5%  -11.8%   -14.3%
                    --------------------------------------------------
Total                  -7.9%   -8.0%   -8.0%    -7.2%   -7.7%    -8.6%
                    ==================================================

Net loss rate (b)
  Healthcare           -1.1%   -0.2%   -1.0%    -1.3%   -1.7%    -0.9%
  Government           -3.6%   -3.8%   -4.3%    -4.0%   -4.5%    -6.4%
  Large enterprise     -5.7%   -6.2%   -4.6%    -4.3%   -6.2%    -6.9%
  Other                -8.3%   -7.2%   -7.2%    -7.1%   -8.2%    -7.9%
                    --------------------------------------------------
Total direct           -4.3%   -3.6%   -3.7%    -3.7%   -4.4%    -4.4%
Total indirect         -7.3%   -6.2%   -3.2%    -4.0%   -3.9%    -6.9%
                    --------------------------------------------------
Total                  -4.7%   -4.0%   -3.7%    -3.7%   -4.4%    -4.7%
                    ==================================================

End of period units
 in service % of
 total (b)
  Healthcare           33.6%   35.0%   36.2%    37.1%   38.3%    40.0%
  Government           17.9%   18.0%   17.8%    17.8%   17.9%    17.7%
  Large enterprise     13.8%   13.6%   13.5%    13.5%   13.1%    12.8%
  Other                22.6%   21.7%   20.7%    19.8%   18.9%    18.0%
                    --------------------------------------------------
Total direct           88.0%   88.3%   88.2%    88.2%   88.2%    88.5%
Total indirect         12.0%   11.7%   11.8%    11.8%   11.8%    11.5%
                    --------------------------------------------------
Total                 100.0%  100.0%  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
 disconnect and net loss rates.

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


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

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

End of period units in service % of total direct
  1 to 3 units                              7.2%      7.0%      6.7%
  4 to 10 units                             4.4%      4.2%      4.1%
  11 to 50 units                           10.7%     10.4%     10.0%
  51 to 100 units                           6.2%      6.0%      5.9%
  101 to 1,000 units                       26.9%     27.1%     26.8%
  >1,000 units                             44.6%     45.3%     46.5%
                                       -------------------------------
Total                                     100.0%    100.0%    100.0%
                                       ===============================

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

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

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



                                          For the three months ended
                                       -------------------------------
                                         12/31/07   3/31/08   6/30/08
                                       -------------------------------

Account size ending units in service (000's)
  1 to 3 units                                200       184       172
  4 to 10 units                               120       112       104
  11 to 50 units                              298       276       255
  51 to 100 units                             176       164       155
  101 to 1,000 units                          827       784       750
  >1,000 units                              1,454     1,419     1,374
                                       -------------------------------
Total                                       3,075     2,939     2,810
                                       ===============================

End of period units in service % of total direct
  1 to 3 units                                6.5%      6.2%      6.1%
  4 to 10 units                               3.9%      3.8%      3.7%
  11 to 50 units                              9.7%      9.4%      9.1%
  51 to 100 units                             5.7%      5.6%      5.5%
  101 to 1,000 units                         26.9%     26.7%     26.7%
  >1,000 units                               47.3%     48.3%     48.9%
                                       -------------------------------
Total                                       100.0%    100.0%    100.0%
                                       ===============================

Account size net loss rate
  1 to 3 units                               -7.6%     -7.8%     -6.9%
  4 to 10 units                              -7.5%     -6.5%     -7.2%
  11 to 50 units                             -6.6%     -7.6%     -7.4%
  51 to 100 units                            -6.4%     -6.9%     -5.5%
  101 to 1,000 units                         -3.3%     -5.2%     -4.3%
  >1,000 units                               -2.0%     -2.4%     -3.2%
                                       -------------------------------
Total                                        -3.7%     -4.4%     -4.4%
                                       ===============================

Account size ARPU
  1 to 3 units                          $   14.83  $  14.66  $  14.62
  4 to 10 units                             13.62     13.56     13.56
  11 to 50 units                            11.07     10.99     11.03
  51 to 100 units                            9.74      9.57      9.76
  101 to 1,000 units                         8.38      8.23      8.45
  >1,000 units                               7.81      7.75      7.70
                                       -------------------------------
Total                                   $    9.09  $   8.95  $   8.97
                                       ===============================

Cellular revenue
Number of activations                       5,070     4,509     3,970
                                       ===============================
Revenue from cellular services (000's)  $   1,705  $  1,859  $  1,547
                                       ===============================


(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
                                         -----------------------------
                                          3/31/07  6/30/07   9/30/07
                                         -----------------------------

Cost of products sold                    $    687 $  1,508  $  2,435
                                         -----------------------------

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

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

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

Severance and restructuring                    17        -     1,177
Depreciation, amortization and accretion   13,318   12,450    12,048
Goodwill impairment                             -        -         -

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

Capital expenditures                     $  5,086 $  3,525  $  4,528



                                          For the three months ended
                                         -----------------------------
                                           12/31/07   3/31/08  6/30/08
                                         -----------------------------

Cost of products sold                     $   1,603  $  1,081 $  1,408
                                         -----------------------------

Service, rental and maintenance
  Site rent                                  19,602    17,792   16,756
  Telecommunications                          6,356     6,204    5,503
  Payroll and related                         6,878     6,683    6,504
  Stock based compensation                       25        17       19
  Other                                       3,934     3,273    2,801
                                         -----------------------------
Total service, rental and maintenance        36,795    33,969   31,583
                                         -----------------------------

Selling and marketing
  Payroll and related                         5,517     5,164    4,797
  Commissions                                 2,056     1,724    2,037
  Stock based compensation                       52        39       50
  Other                                       1,095       909      665
                                         -----------------------------
Total selling and marketing                   8,720     7,836    7,549
                                         -----------------------------

General and administrative
  Payroll and related                         8,744     8,682    8,129
  Stock based compensation                      180       190      247
  Bad debt                                    1,015       711      691
  Facility rent                               2,177     2,073    2,199
  Telecommunications                          1,366     1,048      983
  Outside services                            4,854     5,359    4,584
  Taxes, licenses and permits                 2,218     1,958    2,055
  Other                                       2,762     1,787    1,894
                                         -----------------------------
Total general and administrative             23,316    21,808   20,782
                                         -----------------------------

Severance and restructuring                   5,235       145      153
Depreciation, amortization and accretion     10,872    12,513   11,674
Goodwill impairment                               -   188,170        -

                                         -----------------------------
Operating expenses                        $  86,541  $265,522 $ 73,149
                                         =============================

Capital expenditures                      $   5,184  $  3,988 $  3,892


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

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

                                                  12/31/07   6/30/08
                                                 --------- -----------
                                                           (unaudited)
Assets
  Current assets:
    Cash and cash equivalents                    $  64,542  $  85,756
    Accounts receivable, net                        28,044     26,655
    Prepaid expenses and other                       8,608      7,094
    Deferred income tax assets, net                  8,267      6,178
                                                 --------- -----------
  Total current assets                             109,461    125,683
  Property and equipment, net                       75,669     65,154
  Goodwill                                         188,170          -
  Intangible assets, net                            16,929     12,437
  Deferred income tax assets, net                   86,219     72,548
  Other assets                                       7,634      6,144
                                                 --------- -----------
Total assets                                     $ 484,082  $ 281,966
                                                 ========= ===========

Liabilities and stockholders' equity
  Current liabilities:
    Accounts payable and accrued liabilities     $  53,418  $  43,988
    Distributions payable                               93      1,068
    Customer deposits                                1,592      1,384
    Deferred revenue                                12,059     11,113
                                                 --------- -----------
  Total current liabilities                         67,162     57,553
  Other long-term liabilities                       43,352     42,459
                                                 --------- -----------
Total liabilities                                  110,514    100,012
                                                 --------- -----------
Stockholders' equity:
  Preferred stock                                        -          -
  Common stock                                           3          3
  Additional paid-in capital                       373,565    349,927
  Accumulated deficit                                    -   (167,976)
                                                 --------- -----------
Total stockholders' equity                         373,568    181,954
                                                 --------- -----------
Total liabilities and stockholders' equity       $ 484,082  $ 281,966
                                                 ========= ===========

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

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

                                                  For the six months
                                                          ended
                                                  --------------------
                                                   6/30/07   6/30/08
                                                  --------- ----------

Cash flows from operating activities:
  Net income (loss)                               $ 25,992  $(167,528)
Adjustments to reconcile net income (loss) to net cash provided by
 operating activities:
    Depreciation, amortization and accretion        25,768     24,187
    Goodwill impairment                                  -    188,170
    Deferred income tax expense                     15,230     15,759
    Amortization of stock based compensation           848        562
    Provisions for doubtful accounts, service
     credits and other                               6,069      3,022
    Non-cash transaction tax accrual adjustments    (1,754)    (1,228)
    Loss on disposals of property and equipment        634         24
  Changes in assets and liabilities:
    Accounts receivable                             (7,376)    (1,633)
    Prepaid expenses and other                       1,667      1,617
    Other long-term assets                             (46)     1,490
    Accounts payable and accrued liabilities        (3,686)    (9,798)
    Customer deposits and deferred revenue            (919)    (1,154)
                                                  --------- ----------
Net cash provided by operating activities         $ 62,427  $  53,490
                                                  --------- ----------

Cash flows from investing activities:
  Purchases of property and equipment               (8,611)    (7,880)
  Proceeds from disposals of property and
   equipment                                           129        169
                                                  --------- ----------
Net cash used in investing activities             $ (8,482) $  (7,711)
                                                  --------- ----------

Cash flows from financing activities:
  Cash distributions to stockholders               (62,816)   (24,565)
                                                  --------- ----------
Net cash used in financing activities             $(62,816) $ (24,565)
                                                  --------- ----------


Net (decrease) increase in cash and cash
 equivalents                                        (8,871)    21,214
Cash and cash equivalents, beginning of period      66,507     64,542
                                                  --------- ----------
Cash and cash equivalents, end of period          $ 57,636  $  85,756
                                                  ========= ==========

Supplemental disclosure:
  Interest paid                                   $      7  $       3
                                                  ========= ==========
  Income taxes paid (state and local)             $      -  $     420
                                                  ========= ==========

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

SOURCE: USA Mobility, Inc.

USA Mobility, Inc.
Bob Lougee, 703-721-3080
bob.lougee@usamobility.com