Nextel Partners Reports Strong First Quarter 2000 Results - Company Financial Information

Cambridge Telcom Report, May 1, 2000

Nextel Partners, Inc., (Nasdaq:NXTP) Thursday reported its financial results for the first quarter of 2000 ending the quarter with 75,400 digital subscribers, an increase of 64% from the 46,100 digital subscribers at December 31, 1999.

"We have continued to focus our efforts on completing the build-out of our markets as quickly and efficiently as possible," said John Chapple, Partners' Chairman, President and CEO. "As a result, we are ahead of our build plan and have launched the Central PA, Northeastern PA, Kentucky and Tallahassee markets within the first quarter, some of which we were able to launch earlier than anticipated. Our partnership with Nextel Communications, Inc. and the strong national brand they have built is proving to give us tremendous leverage as we rapidly establish new markets."

Service revenues for the first quarter of 2000 grew 329% to $15.0 million when compared with $3.5 million generated during the first quarter of 1999. Partners' average monthly revenue per subscriber unit of approximately $65 in the first quarter remained higher than the wireless industry average. The monthly churn rate for the first quarter was 2.3%.

Earnings before interest, taxes, depreciation, amortization and stock-based compensation, or EBITDA as adjusted, for the three months ended March 31, 2000 was a loss of $19.0 million as compared to a loss of $10.5 million for the three months ended December 31, 1999. EBITDA is commonly used to analyze companies, but is not a measure of financial performance under generally accepted accounting principles and should not be considered an alternative to net income or loss as a measure of performance or to cash flow as a measure of liquidity. EBITDA as adjusted, as calculated by Partners, may not be comparable to other similarly entitled measures reported by other companies.

Loss from operations for the three months ended March 31, 2000, including stock-based compensation expense of $18.0 million, was $42.1 million. Loss from operations for the three months ended December 31, 1999, including stock-based compensation of $25.6 million, was $40.7 million.

Capital expenditures were $55 million in the first quarter of 2000.

            Condensed Consolidated Statements of Operations
             (dollars in thousands, except per share data)
                              (Unaudited)

                                      For the three months ended
                                               March 31,
                                   --------------------------------
                                        2000                1999
                                   ------------         -----------

REVENUES:
 Service revenues                  $    14,983         $     3,493
 Equipment revenues                      3,526                 811
                                   ------------         -----------
   Total revenues                       18,509               4,304

OPERATING EXPENSES:
 Cost of service revenues               11,208               3,106
 Cost of equipment revenues              6,458               1,718

 Selling, general and administrative    19,831               5,231

EBITDA                                 (18,988)             (5,751)
 Stock-based compensation               18,036                 641
 Depreciation and amortization           5,039               2,515
                                   ------------         -----------
LOSS FROM OPERATIONS                   (42,063)             (8,907)

 Interest expense, net                 (21,614)            (12,529)
 Interest income                        11,812               4,013
                                   ------------         -----------
LOSS BEFORE INCOME TAX PROVISION       (51,865)            (17,423)

 Income tax provision                     --                   --
                                   ------------         -----------
NET LOSS                               (51,865)            (17,423)

 Mandatorily redeemable preferred
  stock dividends                       (3,291)                --
                                   ------------         -----------

LOSS ATTRIBUTABLE TO COMMON
 STOCKHOLDERS                      $   (55,156)        $   (17,423)
                                   ============        ============

LOSS PER SHARE ATTRIBUTABLE TO
 COMMON STOCKHOLDERS
  Basic and diluted loss per share $      0.55         $     (6.06)
                                   ============        ============
 Weighted average number of common
  shares outstanding                   101,002               2,876
                                   ============        ============

                 Selected Balance Sheet and Other Data
                        (Dollars in thousands)

                                     March 31,          December 31,
                                       2000                 1999
                                   ------------         -----------
                                   (unaudited)

Cash, cash equivalents and
 short-term investments, including
  restricted portion               $ 1,195,800       $     568,729
Property, plant and equipment, net $   299,682       $     252,223
Intangible assets, net             $   152,950       $     151,056
Total assets                       $ 1,707,072       $   1,015,327
Long-term debt                     $ 1,001,360       $     785,484
Mandatorily redeemable preferred
 stock                             $    25,141       $       --
Total stockholders' equity         $   621,527       $     170,616

Digital units in service                75,400              46,100

                                          Three Months Ended
                                   March 31,           December 31,
                                     2000                   1999
                                   ------------         -----------
Capital expenditures               $    55,000        $     90,000