Western Wireless Announces First Quarter 2000 Financial Results; Cash Flow of $65 million, a 47% Increase Over Prior Year - Company Financial Information

Cambridge Telcom Report, May 1, 2000

Western Wireless Corporation (Nasdaq:WWCA), a leading provider of communication services to rural America, announced Tuesday its financial and operating results for the first quarter ended March 31, 2000.

"The first quarter of the new millennium is off to a strong start, with EBITDA (operating income before non-cash charges) of $65 million and the fifth consecutive quarter with an EBITDA margin at or above 40%," said John W. Stanton, chairman and chief executive officer of Western Wireless. "During the quarter, we closed on the Utah 5 acquisition, announced a definitive agreement to acquire the Wyoming 1 and Arizona 6 service areas and Tuesday we announced the acquisition of the Oklahoma 4 service area. Western Wireless International (WWI) acquired an interest in the Ivory Coast, a nationwide license covering a population of almost 15 million people." Company Results

Mikal Thomsen, president and chief operating officer of Western Wireless, commented, "In the first quarter, Western Wireless showed strong subscriber and cash flow growth. Year over year, we grew subscribers by 26% and cash flow by 47% while continuing to upgrade our network to meet the both the current and future needs of our customers."

During the first quarter of 2000, domestic subscribers increased by 40,000, including 3,800 from acquisitions, to 874,700. Service revenues increased 37 percent from the same quarter a year ago to $152.6 million and total revenues were $159.3 million, up 37 percent over the same quarter a year ago. EBITDA for the quarter was $65.1 million, a 47 percent increase over the first quarter of 1999. A non-cash expense of $3 million was recognized for stock based compensation. Net income was $1.1 million, earnings of $.01 per basic share for the quarter. Capital expenditures were $48.9 million for the quarter and $16.3 million in free cash flow (EBITDA less capital expenditures) was generated during the first quarter of 2000. Western Wireless International

WWI operating companies added 66,700 customers in six countries, to end the quarter with 389,000 total customers. WWI operating companies held an interest in international licenses in 9 countries at the end of the first quarter. Acquisition of Rural Service Area (RSA)

Separately, Western Wireless announced a definitive agreement to acquire an RSA in northeastern Oklahoma for a purchase price of approximately $60 million. The Oklahoma 4 RSA includes an estimated 200,000 people.

Located in Bellevue, Wash., Western Wireless Corp. is a leading provider of wireless communications services in the western United States and abroad. It currently offers cellular service marketed under the Cellular One name in 19 western states. Through its subsidiaries, Western Wireless is licensed to offer wireless service in 9 countries.

                 WESTERN WIRELESS CORPORATION
        Condensed Consolidated Statements of Operations
         (Dollars in thousands, except per share data)

                                      Three Months Ended March 31,
                                       ---------------------------
                                            2000            1999
                                       -----------     -----------
Revenues:
    Subscriber revenues                 $ 106,723        $ 86,934
    Roamer revenues                        44,649          23,250
    Equipment sales                         6,722           4,384
    Other revenues                          1,217           1,295
                                       -----------     -----------
      Total revenues                      159,311         115,863
                                       -----------     -----------
Operating expenses:
    Cost of service                        18,666          15,504
    Cost of equipment sales                 9,923           7,763
    General and administrative             37,434          26,704
    Sales and marketing                    28,148          21,460
    Depreciation and amortization          29,743          22,441
    Stock based compensation                3,030
                                       -----------     -----------
      Total operating expenses            126,944          93,872
                                       -----------     -----------
Operating income                           32,367          21,991
                                       -----------     -----------
Other income (expense):
Interest and financing expense, net       (31,713)        (23,296)
Equity in net loss of unconsolidated
 affiliates                                   205          (4,761)
Other, net                                    123             647
                                       -----------     -----------
      Total other expense                 (31,385)        (27,410)
                                       -----------     -----------
Minority interest in
  consolidated subsidiaries                   150             192
                                       -----------     -----------
Net income (loss) from
 continuing operations                      1,132          (5,227)
                                       -----------     -----------

Net loss from discontinued operations                     (89,861)
Cost of discontinuance                                    (18,500)
                                                       -----------
  Total discontinued operations                          (108,361)
                                                       -----------

  Net income (loss)                       $ 1,132      $ (113,588)
                                       ===========     ===========
Basic earnings (loss) per share:
    Continuing operations                  $ 0.01         $ (0.07)
    Discontinued operations                                 (1.42)
                                       -----------     -----------
Basic earnings (loss) per share            $ 0.01         $ (1.49)
                                       ===========     ===========
Diluted earnings (loss) per share:
    Continuing operations                  $ 0.01         $ (0.07)
    Discontinued operations                                 (1.42)
                                       -----------     -----------
Diluted earnings (loss) per share          $ 0.01         $ (1.49)
                                       ===========     ===========
Weighted average shares outstanding:
    Basic                              77,731,000      76,252,000
                                       ===========     ===========
    Diluted                            80,342,000      76,252,000
                                       ===========     ===========

     Supplementary Financial and Operational Data

EBITDA(1)                                $ 65,140        $ 44,432
                                       ===========     ===========

Beginning subscribers                     834,700         660,400
Change in subscribers
 (excluding acquisitions)                  36,200          35,100
Change in subscribers due
  to acquisitions                           3,800
                                       -----------     -----------
Total change in subscribers                40,000          35,100
                                       -----------     -----------
Ending subscribers                        874,700         695,500
                                       ===========     ===========

(1) (EBITDA represents operating income before depreciation,
amortization and stock based compensation.