Nextel Stockholders Approve Transactions with Motorola, Craig McCaw, OneComm; Company Activates Digital Mobile Service in Philadelphia and Southeastern Michigan

Business Wire, July 7, 1995

RUTHERFORD, N.J.--(BUSINESS WIRE)--July 7, 1995--Nextel Communications Inc. (NASDAQ:CALL), a leading provider of integrated wireless communications services to teams of mobile workers, today announced it has received the required stockholder approval to complete its pending transactions with Motorola Inc. (NYSE:MOT), Craig O. McCaw and OneComm Corp. (NASDAQ:ONEC).

On July 3, Nextel announced that it had received the required consents from its bondholders to complete the pending transactions.

"With the approval of these transactions, we're one step closer to realizing our goal of developing a nationwide digital wireless communications network serving teams of mobile workers," said Nextel Chairman Morgan O'Brien. "We're confident that we now have the necessary resources to implement a nationwide strategy. As we focus on operations and continuing technical development during the transition, we appreciate the assurances we've received from the highest levels at Motorola and their commitment to improve the technology."

The combination of the specialized mobile radio (SMR) communications businesses of Motorola, OneComm and American Mobile Systems Inc. (NASDAQ:AMSE) will increase the depth of Nextel's spectrum position and customer base. The combination also will enhance Nextel's ability to offer advanced wireless communications services in major markets throughout the United States. In addition, Nextel believes that the financial commitments and extensive industry experience of McCaw, as well as the additional commitments for technology improvements by Motorola, will further drive the success of the new integrated wireless communications industry.

As part of Nextel's ongoing national growth strategy, Wayland R. Hicks, chief executive officer, told shareholders today that Nextel has begun providing its digital wireless communications service to work groups in metropolitan Philadelphia and throughout southeastern Michigan including Detroit, Lansing, Bay City and Ann Arbor, as well as Toledo, Ohio. Pilot customers have been loaded on the systems and the company is now marketing the service to teams of mobile workers throughout these areas.

"As two of the largest markets in the country, the Philadelphia and Detroit metropolitan areas are an important addition to Nextel's network," Hicks said. With these areas in commercial service, Nextel now provides digital wireless communications throughout California and the metropolitan areas of Chicago, Philadelphia, Detroit and New York. OneComm currently provides digital mobile service in Seattle, Portland, Denver, Kansas City, Topeka, Wichita, Oklahoma City, Tulsa and St. Louis.

Once the transactions are completed, Nextel expects to have more that 750,000 SMR units in service. In addition, Nextel also announced that it has approximately 37,000 Digital Mobile units in service as of June 30, 1995, an increase of approximately 14,400 units since March 31, 1995.

Upon satisfaction of the remaining conditions, Nextel expects to close the pending transactions with Motorola, McCaw, OneComm and AMS in late July. The termination dates for the pending agreements with Motorola and OneComm have been extended until July 31, 1995. The company expects to close its pending transaction with Dial Call in the fall of 1995.

Nextel Communications Inc., based in Rutherford, New Jersey, is a leading provider of integrated wireless services focusing on the needs of teams of mobile workers. Services offered by Nextel include enhanced dispatch, text messaging with acknowledgment and mobile telephone services. Nextel's integrated, digital network provides wide-area coverage and improved access over current dispatch systems as well as protection from eavesdropping and wireless fraud.

CONTACT: Paul Blalock

201/531-5200