Digital Radio Files to Hedge a Modest Percentage of Its Nextel Shares

Business Wire, May 2, 2002

Business Editors

KIRKLAND, Wash.--(BUSINESS WIRE)--May 2, 2002

Digital Radio, a company controlled by Craig McCaw, today announced the filing of Form 144 with the Securities and Exchange Commission covering the execution of certain hedging transactions on 7.75 million shares of Nextel Communications, Inc.

The transactions covered by the filing are called prepaid forward collars, whereby Digital Radio accepts less than the full market price upfront in exchange for the right to participate in the potential future upside in the price of Nextel Communications' shares.

Digital Radio Chief Financial Officer Tim Bryan commented: "We continue to believe very strongly in Nextel's value proposition. They have the only differentiated service in the wireless marketplace and continue to deliver the industry's best financial results on a per-subscriber basis. These prepaid forward transactions on a modest percentage of our position allow us to participate in the potential future upside we are looking for in Nextel's share price."

Digital Radio and other Craig McCaw-controlled entities still retain approximately 84% of their Nextel securities compared to their ownership level immediately prior to the transactions.