Chadmoore Wireless Group Gets Credit Approval for $21 Million; Capital to Complete Build-out of SMR Markets

Business Wire, Jan 8, 1999

LAS VEGAS--(BUSINESS WIRE)--Jan. 8, 1998--

At Dec. 31, 1998 - 27,000 Subscribers in 95 Markets an

Increase of 300 % in 1998

Chadmoore Wireless Group Inc. (OTCBB: MOOR) announced today that it has received credit committee approval from a major finance company for $21 million of senior secured debt financing.

This facility will provide the remaining capital required for rolling out commercial SMR service in the rest of Chadmoore's SMR radio dispatch markets. As of December 31 Chadmoore had more than 27,000 subscriber units in service in the first 95 markets in which it had begun loading customers and completed commercialization.

Closing is expected to occur early in the first quarter of 1999. Funds will be used primarily to purchase system infrastructure equipment and for working capital, with terms to include interest at a rate to be fixed at the time of funding based on five-year US Treasury notes plus an agreed upon margin, a five-year amortization schedule following an interest only period, and warrants to purchase approximately 4% of the Company on a fully diluted basis.

Robert Moore, Chadmoore's CEO, added, "To obtain a financing commitment of this magnitude without incurring significant shareholders dilution is a goal that we have remained acutely focused on. At the same time, we have tripled our recurring revenue subscriber base to more than 27,000 radio units in service since the start of the year. With this debt facility in place, we will be positioned to complete our system roll-out and continue meeting the demonstrated need for low-cost one-to-many voice communications in our markets."

Chadmoore Wireless Group is a national leader in providing SMR (Specialized Mobile Radio) communications with approximately 4,800 FCC licenses in 180 markets. Chadmoore provides a high quality, reliable, cost-effective alternative in wireless communications. SMR is a wireless 2-way communications service, which is commonly called "dispatch-radio." This service is used by millions of business and government customers like delivery services, contractors, ambulance services and taxi fleets. Chadmoore's services allow reliable, affordable, predictable one-to-one and one-to-many communications.

Certain information contained in this press release is forward-looking (within the meaning of Section 27A of the Securities Act of 1934 and Section 21E of the Securities Exchange Act of 1934). The Company's actual results could differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company in this press release.