Craig McCaw to Make Further Investments in Nextel Through Option Exercise

Business Wire, May 14, 2001

Business Editors/Technology Writers

KIRKLAND, Wash.--(BUSINESS WIRE)--May 14, 2001

Craig McCaw, through his holding company Eagle River Investments L.L.C., informed Nextel Communications, Inc. (Nasdaq:NXTL) today of his intention to make further investments in the company through exercising additional options in July and August of this year.

[pilcrow (paragraph sign)] "I am impressed by Nextel's accelerating achievements. Not only does Nextel have the highest revenue per customer of any national service provider and the lowest churn in the United States among national carriers, it has in place an all-digital network that launched the first differentiated application -- Direct Connect. Nextel's network was digital from the beginning and is an ideal platform for the full range of emerging wireless data applications," said McCaw.

[pilcrow (paragraph sign)] The McCaw family agreed to invest up to $1.16 billion in Nextel equity in April of 1995. The options Mr. McCaw plans to exercise were granted by Nextel and Motorola in connection with the family's original purchase agreement with Nextel, which gave the McCaw family members the option to purchase shares at pre-determined prices.

[pilcrow (paragraph sign)] Entities controlled by Mr. McCaw have filed notice with the Securities and Exchange Commission of their intention to put a collar in place on a small percentage of their shares through what is referred to as a "pre-paid forward contract," under which the entities would agree to deliver a prescribed number of shares at a predetermined price at a set date in the future. The contracts will continue to be entered into at various times over the next several months. This structure allows Mr. McCaw's enterprises to enjoy the benefit of an increase in the stock price and limits his downside risk. The proceeds of this transaction are intended to be used to fund the exercise price of the options and to pay resulting taxes.

[pilcrow (paragraph sign)] Mr. McCaw also indicated that he contemplates a distribution of some of the Nextel shares owned by the family holding company, Digital Radio, L.L.C., to McCaw family members.