CDMA Network Sells and Leases Back Tower Sites

UbiquiTel, an affiliate network of SprintPCS, and GoldenState Towers have announced that they have entered into a definitive sale and leaseback agreement for the sale to GoldenState of 100 wireless communications tower sites owned by UbiquiTel's subsidiary VIA Wireless located in the central valley of California and the lease-back of space on those sites. Under the terms of the transaction, UbiquiTel expects to receive US$11.5 million in cash for the sale of the towers and related assets, and will lease-back space on the tower sites from GoldenState at agreed upon rates for an initial term of 10 years.

UbiquiTel had previously announced its intent to sell these non-core tower assets to further enhance its medium-term liquidity position following the US$15 million prepayment of bank term loans in the first quarter. As of March 31, 2003, UbiquiTel had US$56.7 million of cash, cash equivalents and restricted cash and an unused bank revolving line of credit of US$50 million.

"The expected receipt of the proceeds from the towers sale, coupled with our previously announced tax refund of US$8.9 million, will further enhance our strong liquidity position. We reaffirm our guidance to end the year with US$42 million to US$48 million of cash, cash equivalents and restricted cash in addition to our US$50 million revolving line of credit," said Donald A. Harris, chairman and chief executive officer of UbiquiTel Inc. "Along with the successful completion of the company's debt-for-debt exchange transaction and related financing in the first quarter, these actions augment our solid financial footing as we continue to grow the business and position us for future profitability."

"We look forward to continuing our partnership with UbiquiTel, and the assimilation of the 100 central valley, California towers into our current portfolio significantly strengthens our presence as a preferred regional tower company in the west," said John F. Ricci, chief executive officer of GoldenState Towers, LLC."

Posted to the site on 17th June 2003