SPRINT CELLULAR TO EXPAND "FOOTPRINT" IN SOUTH CAROLINA

Business Wire, June 21, 1995

CHICAGO--(BUSINESS WIRE)--June 21, 1995--Sprint Cellular Company and Palmetto MobileNet L.P. (Palmetto) today announced they have signed a letter of intent for Sprint Cellular to obtain an ownership interest in, and assume management responsibility for, Palmetto's cellular operations in three Rural Service Areas in South Carolina. Financial terms were not disclosed.

The proposed transaction between Palmetto and Sprint Cellular affecting South Carolina RSAs 4, 5, and 6 is subject to the negotiation of a definitive agreement, the approval of the Sprint Board of Directors and other regulatory approvals.

This transaction is also subject to Palmetto completing its purchase of the 50 percent interest owned by BellSouth Mobility, which currently is a partner with Palmetto in South Carolina. BellSouth recently announced its plans to sell its cellular interests in South Carolina, and Palmetto has exercised its right to purchase the interest owned by BellSouth in RSAs 4, 5 and 6. The two companies are in the process of completing the transaction.

"We want to continue providing our customers with the best possible affordable service, and our partnership with Sprint Cellular will do just that," said John M. Barnes, president of the general partnership of Palmetto MobileNet, L.P.

Dennis Foster, president and chief operating officer of Sprint Cellular, added: "This agreement reflects our bullish view of the cellular business and the continued growth we see in the future. At the same time, it enhances our already formidable footprint in North and South Carolina."

South Carolina RSAs 4, 5 and 6 surround the Florence, S.C., metropolitan serving area and cover 12 counties: Kershaw, Chesterfield, Marlboro, Darlington, Dillon, Marion, Horry, Georgetown, Williamsburg, Clarendon, Sumter and Lee. The new markets include the popular tourism area of Myrtle Beach and other vacation areas along the South Carolina coast.

The RSA serving areas will add approximately 650,000 POPs to the Sprint Cellular footprint, which already includes cellular serving areas in the southeastern and northwest portions of South Carolina.

Sprint and Palmetto already have established cellular partnerships in two other South Carolina RSAs, located in the Hilton Head and Greenwood areas. Sprint also manages these two markets.

Palmetto MobileNet L.P. is owned by 18 South Carolina telephone companies and has ownership interests in eight cellular South Carolina Rural Service Areas covering 34 counties and approximately 21,000 square miles of service area with a population of approximately 1,450,000.

Sprint Cellular is one of the fastest growing major cellular carriers in the United States, providing wireless voice and data service to more than 1 million customers in nearly 100 markets across 14 states. It is a division of Sprint, a diversified international telecommunications company with more than $12.6 billion in annual revenues and the United States' only nationwide all-digital, fiber-optic network. Its divisions provide global long distance voice, data and video products and services, and local telephone services to more than 6.4 million customer lines in 19 states.

CONTACT: Sprint Cellular

Rick Johnson, (O) 312-399-5153

or (Cellular) 312-802-1540

or

Palmetto MobileNet

Keith Stuckey, (O) 803-794-7366