AirTouch Increases Ownership in Spanish Cellular Venture; AirTouch is Largest Partner in Airtel

Business Wire, Dec 16, 1997

SAN FRANCISCO--(BUSINESS WIRE)--Dec. 16, 1997--AirTouch Communications (NYSE:ATI) today announced it has increased its ownership stake in Airtel, its Spanish cellular company, by 5 percent to 21.7 percent. AirTouch is the largest shareholder in Airtel, Spain's first private cellular operator.

AirTouch acquired its additional interest from Banco Santander. Financial terms were not disclosed.

"We are delighted to be able to increase our ownership in Spain, one of the world's fastest-growing cellular markets," said Lou Golm, president of AirTouch International. "By increasing our holdings in our existing operations on favorable terms, we expect to maintain our excellent track record for international growth." Golm noted that AirTouch has acquired additional interests in Germany, Italy and Portugal in previous transactions.

Airtel launched service in October 1995, becoming Spain's second cellular operator. By September 30, 1997, the company had over 1 million customers, after increasing its subscriber base more than 50 percent in just nine months. Only about 10 percent of Spain's 40 million people subscribe to cellular service, compared to roughly 20 percent in the United States and approximately 30 percent in Sweden, suggesting significant potential for future growth.

AirTouch recently announced its worldwide customer base broke through the 10 million mark in November. With ventures in half of the world's ten largest cellular markets, the company has added more cellular customers in less than a year than during its first 10 years of operations. AirTouch enjoys a unique position among large wireless carriers -- its diverse global portfolio allows the company to balance the risks of changing market conditions in a particular region.

AirTouch Communications is a global wireless communications company, with interests in cellular, paging and personal communications services in the United States, Belgium, Germany, India, Italy, Japan, Poland, Portugal, Romania, South Korea, Spain and Sweden, as well as an interest in the Globalstar satellite system. The company, based in San Francisco, serves 10 million proportionate customers worldwide. -0-

Note to Editors: For a fax copy of this or other recent AirTouch press releases, please call 1-800-344-7531 or visit the company's web site at www.airtouch.com .

CONTACT: AirTouch Communications, San Francisco

Susan Rosenberg, 415/658-2209