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USA Mobility Reports Third Quarter Operating Results; Board Declares Quarterly Cash Distribution

Revenue Per Unit and Expense Trends Continue to Improve

ALEXANDRIA, Va.--(BUSINESS WIRE)--Oct. 29, 2008--USA Mobility, Inc. (Nasdaq: USMO), a leading provider of wireless messaging and communications services, today announced operating results for the third quarter ended September 30, 2008.

In addition, the Company's Board of Directors declared a regular quarterly cash distribution of $0.25 per share. The cash distribution will be paid on December 10, 2008 to stockholders of record on November 14, 2008. The Company expects the entire amount of the cash distribution to be paid as a return of capital.

Total revenue for the third quarter was $88.4 million, compared to $92.1 million in the second quarter and $105.4 million in the third quarter of 2007. Net income in the third quarter was $2.4 million, or $0.09 per fully diluted share, compared to net income of $15.5 million, or $0.56 per fully diluted share, in the year-earlier quarter. The decrease in net income primarily resulted from a $7.3 million income tax expense in the third quarter due to a reduction in the carrying value of deferred income tax assets (DTAs). Absent the incremental income tax expenses, net income for the third quarter would have been $9.7 million, or $0.35 per fully diluted share.

    Third quarter results included:

    --  Total paging ARPU (average revenue per unit) increased to
        $8.69 in the third quarter, compared to $8.54 in the second
        quarter and $8.62 in the year-earlier quarter.

    --  Operating expenses (excluding depreciation, amortization,
        accretion and goodwill impairment) were $62.8 million in the
        third quarter, compared to $61.5 million in the second
        quarter. The increase resulted from severance and
        restructuring charges of $5.1 million. Absent severance and
        restructuring charges, operating expenses in the third quarter
        would have been $57.7 million, a decrease of 5.8 percent from
        the second quarter and 20.5 percent from the third quarter of
        2007.

    --  EBITDA (earnings before interest, taxes, depreciation,
        amortization, accretion and goodwill impairment) in the third
        quarter totaled $25.5 million, compared to $30.6 million in
        the second quarter and $31.6 million in the third quarter of
        2007. Excluding the $5.1 million of severance and
        restructuring charges, EBITDA would have been $30.6 million in
        the third quarter, approximately the same as the prior
        quarter.

    --  EBITDA margin (or EBITDA as a percentage of revenue) was 28.9
        percent in the third quarter, compared to 33.2 percent in the
        second quarter and 29.9 percent in the third quarter of 2007.
        Absent the severance and restructuring charges, EBITDA margin
        in the third quarter would have been 34.6 percent.

    --  Units in service totaled 3,002,000 at September 30, 2008,
        compared to 3,176,000 at June 30, 2008. Net unit loss in the
        third quarter was 174,000, compared to 157,000 in the second
        quarter and 137,000 in the third quarter of 2007.

    --  The annual rate of subscriber erosion was 17.1 percent,
        compared to 15.5 percent in the second quarter and 15.0
        percent in the year-earlier quarter. The quarterly rate of
        subscriber loss was 5.5 percent, compared to 4.7 percent in
        second quarter and 3.7 percent in the third quarter of 2007.

    --  The annual rate of revenue erosion was 16.2 percent, compared
        to 14.3 percent in the second quarter, while the quarterly
        rate of revenue erosion was 4.0 percent, compared to 2.8
        percent in the prior quarter.

    --  Capital expenses were $6.2 million, compared to $3.9 million
        in the second quarter.

    --  The Company's cash balance at September 30, 2008 was $103.7
        million.

"USA Mobility again made excellent progress during the third quarter," said Vincent D. Kelly, president and chief executive officer, "as we continued to successfully manage our costs, maximize cash flow, and generate solid revenue and profitability. In addition, we restructured pricing on selected products to better reflect current values, resulting in higher average revenue per unit and a strong operating margin, and continued to focus on sales opportunities in our core market segments of Healthcare, Government and Large Enterprise. At the same time," he added, "we were disappointed at the continued high level of net unit loss during the quarter as gross unit placements slowed relative to past trends. In fact, in the third quarter we lost almost 2.7 subscribers for every new subscriber we added." Kelly noted, however, that net unit loss rates among the Company's core market segments were again lower than for other customers. "Healthcare, in particular, continues to be our most stable segment," he said, "and now represents 41.5 percent of our customer base."

Kelly said the Company ended the quarter with a strong balance sheet, including cash balances exceeding $100 million. "USA Mobility is an unusual company in today's market environment, with no debt, significant cash and a high cash flow margin," he said. "As a result, our Board today declared a $0.25 quarterly cash distribution consistent with our policy to return capital to stockholders." Kelly cautioned, however, that the Board will continue to monitor the Company's capital distribution policy going forward. "Notwithstanding our strong results over the past two quarters due to ARPU enhancements and cost control, we recognize that continued levels of subscriber erosion, exacerbated by a challenging economy, will reduce our future cash flow levels and operating margins."

In response to the declining subscriber base and weakening economy, Kelly said the Company recently launched a series of internal initiatives for the balance of 2008 and throughout 2009 designed to create greater operational efficiencies throughout the organization as well as enhance existing cost reduction efforts. Included among the initiatives are plans to accelerate the Company's network rationalization program to further reduce site rent costs, restructure sales and marketing operations to better focus resources on core market segments, and consolidate various administrative functions and responsibilities. "These changes are necessary in order for us to partially offset the impact of declining revenues and to meet our long-term goals for free cash flow, customer sales and retention, quality customer service, and technically efficient networks," said Kelly, "as we continue to provide reliable and cost effective wireless communications services to our customers nationwide."

Commenting on the Company's appeal of the Federal Communications Commission's Back-Up Power Order (Order), Kelly said the case is still pending. "In the meantime," he added, "we made significant progress during the third quarter to deconstruct redundant transmitters in connection with our long-term network rationalization program. While we believe the Court will ultimately vacate the Order based on the merits of our appeal, our ongoing program to eliminate transmitters is steadily reducing the potential cost of compliance should the Order eventually be upheld."

Additionally, the FCC is considering changes to its rules governing the collection of universal service fees. Such changes could significantly increase the contributions the Company is required to make to the Universal Service Fund. Currently, the FCC assesses universal service contributions based on telecommunications carriers' interstate revenues, but it is considering imposing instead a flat monthly charge of $1.00 or more per assigned telephone number. Contributing on the basis of assigned telephone numbers would cost the Company far more than the existing revenue-based methodology. The Company has presented its position to the FCC that paging carriers should be exempt from any numbers-based contribution requirement in light of important public policy and legal considerations. If the FCC adopts a numbers-based methodology and refuses to grant an exemption for paging carriers, the Company's attempt to recover the increased contribution costs from customers could significantly diminish demand for the Company's services, and our failure to recover such increased contribution costs could have a material adverse impact on the Company's financial performance.

Thomas L. Schilling, chief operating officer and chief financial officer, said the Company reported solid financial and operating results for the third quarter. "Higher revenue per unit was largely the result of our program to adjust retail prices that we initiated last June," he said, "while a continued emphasis on cost reduction contributed to our strong EBITDA and cash flow margins. Our recurring operating expenses, excluding a $5.1 million charge for severance and restructuring in the third quarter, continued to decline as a result of numerous cost control efforts," Schilling noted, "and are down 20.5 percent from the third quarter of 2007, continuing to outpace the 16.2 percent annual rate of revenue erosion."

Commenting on the reduction of DTAs in the third 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, 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 noted that the Company was maintaining its previously announced financial guidance for 2008, with revenues for the year expected to be between $355 million to $360 million, operating expenses (excluding depreciation, amortization, accretion and goodwill impairment) expected to be between $245 million to $250 million, and capital expenses for 2008 to range from $18 million to $20 million.

USA Mobility plans to host a conference call for investors on its third quarter results at 10:00 a.m. Eastern Time on Thursday, October 30, 2008. The dial-in number for the call is 866-316-1372 (toll-free) or 913-312-1272 (toll). The pass code for the call is 4281933. A replay of the call will be available from 2:00 p.m. ET on October 30 until 11:59 p.m. on Thursday, November 13. The replay number is 888-203-1112 (toll-free) or 719-457-0820 (toll). The pass code for the replay is 4281933.

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.

                           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
                  ----------------------------------------------------
                    3/31/07      6/30/07      9/30/07      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
  Goodwill
   impairment               -            -            -            -
                  ----------------------------------------------------
Total operating
 expenses              89,745       86,586       85,903       86,541
                  ----------------------------------------------------
   % of total
    revenues             80.5%        80.6%        81.5%        86.4%

                  ----------------------------------------------------
Operating income
 (loss)                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 (expense)
   income, net           (516)         826        1,038          802
                  ----------------------------------------------------
Income (loss)
 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
 (loss) to EBITDA
 (b):
Operating income
 (loss)           $    21,797  $    20,884  $    19,521  $    13,647
Add back:
 depreciation,
 amortization and
 accretion             13,318       12,450       12,048       10,872
Add back:
 goodwill
 impairment                 -            -            -            -
                  ----------------------------------------------------
EBITDA            $    35,115  $    33,334  $    31,569  $    24,519
                  ====================================================
   % of total
    revenues             31.5%        31.0%        29.9%        24.5%



                                     For the three months ended
                              ----------------------------------------
                                  3/31/08      6/30/08      9/30/08
                                 ----------   ----------   ----------
Revenues:
  Paging service                $    86,773  $    83,360  $    80,533
  Cellular                            1,859        1,547        1,494
  Product sales                       4,871        5,741        5,014
  Other                               1,255        1,427        1,316
                              --------------------------- ------------
Total revenues                       94,758       92,075       88,357
                              --------------------------- ------------

Operating expenses:
  Cost of products sold               1,081        1,408        1,291
  Service, rental and
   maintenance                       33,969       31,583       29,069
  Selling and marketing               7,836        7,549        6,756
  General and administrative         21,808       20,782       20,631
  Severance and restructuring           145          153        5,063
  Depreciation, amortization
   and accretion                     12,513       11,674       11,075
  Goodwill impairment               188,170            -            -
                              --------------------------- ------------
Total operating expenses            265,522       73,149       73,885
                              --------------------------- ------------
   % of total revenues                280.2%        79.4%        83.6%

                              --------------------------- ------------
Operating income (loss)            (170,764)      18,926       14,472
                              --------------------------- ------------
   % of total revenues               -180.2%        20.6%        16.4%

  Interest income, net                  578          672          471
  Other (expense) income, net           125          202          205
                              --------------------------- ------------
Income (loss) before income
 tax expense                       (170,061)      19,800       15,148
  Income tax expense                  7,739        9,528       12,730
                              --------------------------- ------------
Net income (loss)               $  (177,800) $    10,272  $     2,418
                              =========================== ============

Basic net income (loss) per
 common share                   $     (6.48) $      0.37  $      0.09
                              =========================== ============
Diluted net income (loss) per
 common share                   $     (6.48) $      0.37  $      0.09
                              =========================== ============

Basic weighted average common
 shares outstanding              27,459,068   27,474,156   27,474,156
                              =========================== ============
Diluted weighted average
 common shares outstanding       27,459,068   27,600,976   27,602,296
                              =========================== ============


Reconciliation of operating
 income (loss) to EBITDA (b):
Operating income (loss)         $  (170,764) $    18,926  $    14,472
Add back: depreciation,
 amortization and accretion          12,513       11,674       11,075
Add back: goodwill impairment       188,170            -            -
                              --------------------------- ------------
EBITDA                          $    29,919  $    30,600  $    25,547
                              =========================== ============
   % of total revenues                 31.6%        33.2%        28.9%


(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
                                 -------  -------  -------  --------
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
                                 =====================================



                                           For the three months ended
                                          ----------------------------
                                            3/31/08  6/30/08  9/30/08
                                            -------  -------  -------
Units in service
------------------------------------------

Beginning units in service
    Direct one-way                            2,854    2,733    2,614
    Direct two-way                              221      206      196
                                          ------------------- --------
  Total direct                                3,075    2,939    2,810
                                          ------------------- --------
    Indirect one-way                            312      286      261
    Indirect two-way                             98      108      105
                                          ------------------- --------
  Total indirect                                410      394      366
                                          ------------------- --------
Total beginning units in service              3,485    3,333    3,176
                                          =================== ========

Gross placements
    Direct one-way                               77       90       76
    Direct two-way                                8       11        8
                                          ------------------- --------
  Total direct                                   85      101       84
                                          ------------------- --------
    Indirect one-way                             17       22       12
    Indirect two-way                             16        7        7
                                          ------------------- --------
  Total indirect                                 33       29       19
                                          ------------------- --------
Total gross placements                          118      130      103
                                          =================== ========

Gross disconnects
    Direct one-way                             (199)    (209)    (199)
    Direct two-way                              (22)     (21)     (20)
                                          ------------------- --------
  Total direct                                 (221)    (230)    (219)
                                          ------------------- --------
    Indirect one-way                            (44)     (47)     (47)
    Indirect two-way                             (5)     (10)     (11)
                                          ------------------- --------
  Total indirect                                (49)     (57)     (58)
                                          ------------------- --------
Total gross disconnects                        (270)    (287)    (277)
                                          =================== ========

Net gain (loss)
    Direct one-way                             (122)    (119)    (123)
    Direct two-way                              (14)     (10)     (12)
                                          ------------------- --------
  Total direct                                 (136)    (129)    (135)
                                          ------------------- --------
    Indirect one-way                            (27)     (25)     (35)
    Indirect two-way                             11       (3)      (4)
                                          ------------------- --------
  Total indirect                                (16)     (28)     (39)
                                          ------------------- --------
Total net change                               (152)    (157)    (174)
                                          =================== ========

Ending units in service
    Direct one-way                            2,732    2,614    2,491
    Direct two-way                              207      196      184
                                          ------------------- --------
  Total direct                                2,939    2,810    2,675
                                          ------------------- --------
    Indirect one-way                            285      261      226
    Indirect two-way                            109      105      101
                                          ------------------- --------
  Total indirect                                394      366      327
                                          ------------------- --------
Total ending units in service                 3,333    3,176    3,002
                                          =================== ========


(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
                              -------   -------   -------   --------

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%
                             -----------------------------------------



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

ARPU
---------------------------------------
  Direct one-way                         $   7.83  $   7.85  $   8.08
  Direct two-way                            23.68     23.90     23.78
                                       --------------------- ---------
Total direct                                 8.95      8.97      9.16

  Indirect one-way                           4.10      4.57      4.79
  Indirect two-way                           7.52      7.08      5.35
                                       --------------------- ---------
Total indirect                               4.97      5.28      4.96

  Total one-way                              7.47      7.54      7.79
  Total two-way                             18.44     18.07     17.29
                                       --------------------- ---------
Total paging ARPU                        $   8.49  $   8.54  $   8.69
                                       --------------------- ---------



Gross disconnect rate (b)
---------------------------------------
  Direct one-way                             -7.0%     -7.6%     -7.6%
  Direct two-way                            -10.2%    -10.4%    -10.2%
                                       --------------------- ---------
Total direct                                 -7.2%     -7.8%     -7.8%

  Indirect one-way                          -13.9%    -16.4%    -17.9%
  Indirect two-way                           -5.3%     -8.8%    -10.3%
                                       --------------------- ---------
Total indirect                              -11.8%    -14.3%    -15.7%

  Total one-way                              -7.7%     -8.5%     -8.6%
  Total two-way                              -8.7%     -9.8%    -10.2%
                                       --------------------- ---------
Total paging gross disconnect rate           -7.7%     -8.6%     -8.7%
                                       --------------------- ---------



Net gain / loss rate (c)
---------------------------------------
  Direct one-way                             -4.3%     -4.3%     -4.7%
  Direct two-way                             -6.4%     -5.2%     -6.1%
                                       --------------------- ---------
Total direct                                 -4.4%     -4.4%     -4.8%

  Indirect one-way                           -8.5%     -8.6%    -13.2%
  Indirect two-way                           11.0%     -2.4%     -4.1%
                                       --------------------- ---------
Total indirect                               -3.9%     -6.9%    -10.6%

  Total one-way                              -4.7%     -4.8%     -5.5%
  Total two-way                              -1.1%     -4.2%     -5.4%
                                       --------------------- ---------
Total paging net gain / loss rate            -4.4%     -4.7%     -5.5%
                                       --------------------- ---------


(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 9/30/08
              ------- ------- ------- -------- ------- ------- -------

Gross
 placement
 rate (b)
  Healthcare     3.6%    4.8%    4.5%     3.6%    3.3%    4.8%    3.8%
  Government     2.2%    2.5%    2.5%     2.0%    2.2%    2.1%    2.2%
  Large
   enterprise    2.7%    3.0%    2.9%     2.7%    2.4%    2.3%    2.2%
  Other          2.6%    3.2%    3.4%     2.4%    2.5%    2.6%    2.4%
              ------------------------------------------------ -------
Total direct     2.9%    3.7%    3.6%     2.8%    2.8%    3.4%    3.0%
Total
 indirect        5.3%    6.9%    9.6%     8.5%    8.0%    7.4%    5.1%
              ------------------------------------------------ -------
Total            3.2%    4.1%    4.3%     3.5%    3.4%    3.9%    3.2%
              ================================================ =======

Gross
 disconnect
 rate (b)
  Healthcare    -4.6%   -5.0%   -5.6%    -5.0%   -5.1%   -5.8%   -6.0%
  Government    -5.8%   -6.4%   -6.8%    -6.0%   -6.7%   -8.5%   -8.5%
  Large
   enterprise   -8.4%   -9.3%   -7.6%    -6.9%   -8.6%   -9.2%   -9.2%
  Other        -10.9%  -10.5%  -10.5%    -9.5%  -10.7%  -10.5%  -10.1%
              ------------------------------------------------ -------
Total direct    -7.2%   -7.3%   -7.3%    -6.6%   -7.2%   -7.8%   -7.8%
Total
 indirect      -12.6%  -13.2%  -12.8%   -12.5%  -11.8%  -14.3%  -15.7%
              ------------------------------------------------ -------
Total           -7.9%   -8.0%   -8.0%    -7.2%   -7.7%   -8.6%   -8.7%
              ================================================ =======

Net loss rate
 (b)
  Healthcare    -1.1%   -0.2%   -1.0%    -1.3%   -1.7%   -0.9%   -2.1%
  Government    -3.6%   -3.8%   -4.3%    -4.0%   -4.5%   -6.4%   -6.3%
  Large
   enterprise   -5.7%   -6.2%   -4.6%    -4.3%   -6.2%   -6.9%   -7.0%
  Other         -8.3%   -7.2%   -7.2%    -7.1%   -8.2%   -7.9%   -7.8%
              ------------------------------------------------ -------
Total direct    -4.3%   -3.6%   -3.7%    -3.7%   -4.4%   -4.4%   -4.8%
Total
 indirect       -7.3%   -6.2%   -3.2%    -4.0%   -3.9%   -6.9%  -10.6%
              ------------------------------------------------ -------
Total           -4.7%   -4.0%   -3.7%    -3.7%   -4.4%   -4.7%   -5.5%
              ================================================ =======

End of period
 units in
 service % of
 total (b)
  Healthcare    33.6%   35.0%   36.2%    37.1%   38.3%   40.0%   41.5%
  Government    17.9%   18.0%   17.8%    17.8%   17.9%   17.7%   17.6%
  Large
   enterprise   13.8%   13.6%   13.5%    13.5%   13.1%   12.8%   12.6%
  Other         22.6%   21.7%   20.7%    19.8%   18.9%   18.0%   17.4%
              ------------------------------------------------ -------
Total direct    88.0%   88.3%   88.2%    88.2%   88.2%   88.5%   89.1%
Total
 indirect       12.0%   11.7%   11.8%    11.8%   11.8%   11.5%   10.9%
              ------------------------------------------------ -------
Total          100.0%  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   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                    7.2%      7.0%      6.7%       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
                             =========================================



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

Account size ending units in service
 (000's)
  1 to 3 units                                184       172       159
  4 to 10 units                               112       104        97
  11 to 50 units                              276       255       236
  51 to 100 units                             164       155       144
  101 to 1,000 units                          784       750       716
  Greater than 1,000 units                  1,419     1,374     1,323
                                       --------------------- ---------
Total                                       2,939     2,810     2,675
                                       ===================== =========

End of period units in service % of
 total direct
  1 to 3 units                                6.2%      6.1%      6.0%
  4 to 10 units                               3.8%      3.7%      3.6%
  11 to 50 units                              9.4%      9.1%      8.8%
  51 to 100 units                             5.6%      5.5%      5.4%
  101 to 1,000 units                         26.7%     26.7%     26.8%
  Greater than 1,000 units                   48.3%     48.9%     49.4%
                                       --------------------- ---------
Total                                       100.0%    100.0%    100.0%
                                       ===================== =========

Account size net loss rate
  1 to 3 units                               -7.8%     -6.9%     -7.0%
  4 to 10 units                              -6.5%     -7.2%     -6.7%
  11 to 50 units                             -7.6%     -7.4%     -7.4%
  51 to 100 units                            -6.9%     -5.5%     -7.5%
  101 to 1,000 units                         -5.2%     -4.3%     -4.6%
  Greater than 1,000 units                   -2.4%     -3.2%     -3.7%
                                       --------------------- ---------
Total                                        -4.4%     -4.4%     -4.8%
                                       ===================== =========

Account size ARPU
  1 to 3 units                           $  14.66  $  14.62  $  14.72
  4 to 10 units                             13.56     13.56     13.92
  11 to 50 units                            10.99     11.03     11.40
  51 to 100 units                            9.57      9.76     10.36
  101 to 1,000 units                         8.23      8.45      8.91
  Greater than 1,000 units                   7.75      7.70      7.72
                                       --------------------- ---------
Total                                    $   8.95  $   8.97  $   9.16
                                       ===================== =========


Cellular revenue
Number of activations                       4,509     3,970     3,779
                                       ===================== =========
Revenue from cellular services (000's)   $  1,859  $  1,547  $  1,494
                                       ===================== =========


(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  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
Goodwill impairment                    -        -         -         -

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

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



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

Cost of products sold                       $  1,081 $  1,408 $  1,291
                                          ------------------- --------

Service, rental and maintenance
  Site rent                                   17,792   16,756   15,463
  Telecommunications                           6,204    5,503    5,072
  Payroll and related                          6,683    6,504    5,827
  Stock based compensation                        17       19       19
  Other                                        3,273    2,801    2,688
                                          ------------------- --------
Total service, rental and maintenance         33,969   31,583   29,069
                                          ------------------- --------

Selling and marketing
  Payroll and related                          5,164    4,797    4,317
  Commissions                                  1,724    2,037    1,742
  Stock based compensation                        39       50       49
  Other                                          909      665      648
                                          ------------------- --------
Total selling and marketing                    7,836    7,549    6,756
                                          ------------------- --------

General and administrative
  Payroll and related                          8,682    8,129    7,847
  Stock based compensation                       190      247      253
  Bad debt                                       711      691      680
  Facility rent                                2,073    2,199    1,937
  Telecommunications                           1,048      983      936
  Outside services                             5,359    4,584    4,632
  Taxes, licenses and permits                  1,958    2,055    2,216
  Other                                        1,787    1,894    2,130
                                          ------------------- --------
Total general and administrative              21,808   20,782   20,631
                                          ------------------- --------

Severance and restructuring                      145      153    5,063
Depreciation, amortization and accretion      12,513   11,674   11,075
Goodwill impairment                          188,170        -        -

                                          ------------------- --------
Operating expenses                          $265,522 $ 73,149 $ 73,885
                                          =================== ========

Capital expenditures                        $  3,988 $  3,892 $  6,214


(a) Slight variations in totals are due to rounding.
                          USA MOBILITY, INC.
              CONDENSED CONSOLIDATED BALANCE SHEETS (a)
                            (in thousands)



                                                 12/31/07    9/30/08
                                                 ---------  ---------
                                                           (unaudited)
Assets
  Current assets:
    Cash and cash equivalents                   $   64,542 $  103,728
    Accounts receivable, net                        28,044     25,866
    Prepaid expenses and other                       8,608      6,859
    Deferred income tax assets, net                  8,267      5,948
                                                ---------- -----------
  Total current assets                             109,461    142,401
  Property and equipment, net                       75,669     63,102
  Goodwill                                         188,170          -
  Intangible assets, net                            16,929      9,791
  Deferred income tax assets, net                   93,884     69,601
  Other assets                                       7,634      5,535
                                                ---------- -----------
Total assets                                    $  491,747 $  290,430
                                                ========== ===========

Liabilities and stockholders' equity
  Current liabilities:
    Accounts payable and accrued liabilities    $   52,568 $   48,843
    Distributions payable                               93        972
    Customer deposits                                1,592      1,285
    Deferred revenue                                12,059     11,087
                                                ---------- -----------
  Total current liabilities                         66,312     62,187
  Other long-term liabilities                       51,867     50,249
                                                ---------- -----------
Total liabilities                                  118,179    112,436
                                                ---------- -----------
Stockholders' equity:
  Preferred stock                                        -          -
  Common stock                                           3          3
  Additional paid-in capital                       373,565    343,101
  Accumulated deficit                                    -   (165,110)
                                                ---------- -----------
Total stockholders' equity                         373,568    177,994
                                                ---------- -----------
Total liabilities and stockholders' equity      $  491,747 $  290,430
                                                ========== ===========

(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 nine months ended
                                             -------------------------
                                               9/30/07      9/30/08
                                              ----------   ----------

Cash flows from operating activities:
  Net income (loss)                          $    41,460  $  (165,110)
  Adjustments to reconcile net income (loss)
   to net cash provided by operating
   activities:
    Depreciation, amortization and accretion      37,816       35,262
    Goodwill impairment                                -      188,170
    Deferred income tax expense                   24,231       27,871
    Amortization of stock based compensation       1,155          884
    Provisions for doubtful accounts,
     service credits and other                     7,573        4,566
    Non-cash transaction tax accrual
     adjustments                                  (6,130)      (1,717)
  Changes in assets and liabilities:
    Accounts receivable                           (8,892)      (2,388)
    Prepaid expenses and other                     3,341        2,501
    Intangibles and other long-term assets          (212)       2,498
    Accounts payable and accrued liabilities      (6,500)      (6,787)
    Customer deposits and deferred revenue        (3,303)      (1,279)
                                             ------------ ------------
    Net cash provided by operating
     activities                              $    90,539  $    84,471
                                             ------------ ------------

Cash flows from investing activities:
  Purchases of property and equipment            (13,139)     (14,094)
  Proceeds from disposals of property and
   equipment                                         155          176
                                             ------------ ------------
  Net cash used in investing activities      $   (12,984) $   (13,918)
                                             ------------ ------------

Cash flows from financing activities:
  Cash distributions to stockholders             (80,530)     (31,367)
                                             ------------ ------------
  Net cash used in financing activities      $   (80,530) $   (31,367)
                                             ------------ ------------


Net (decrease) increase in cash and cash
 equivalents                                      (2,975)      39,186
Cash and cash equivalents, beginning of
 period                                           66,507       64,542
                                             ------------ ------------
Cash and cash equivalents, end of period     $    63,532  $   103,728
                                             ============ ============

Supplemental disclosure:
  Interest paid                              $        11  $         3
                                             ============ ============
  Income taxes paid (state and local)        $       404  $         1
                                             ============ ============

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

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

SOURCE: USA Mobility, Inc.