TracFone Wireless Launches SafeLink Wireless® to Aid 812,807 Low-Income Households in Tennessee

Business Wire, August 15, 2008

Participants Receive Over an Hour of Free Talk Time Monthly and Free Wireless Cell Phone

NASHVILLE, Tenn. -- Today, TracFone Wireless, Inc., America's leading prepaid cell phone provider announced its launch of SafeLink Wireless[R] in Tennessee. SafeLink Wireless will serve as the company's distribution of Lifeline - a U.S. government supported program for income eligible households that ensures telephone service is available and affordable for eligible low income households.

The SafeLink Wireless service will provide eligible low-income households a free cell phone, mobile access to emergency services and free 68 minutes of air time, monthly, for one year. The cell phone offers in-demand features: voicemail, text, call waiting, international calling to over 60 destinations and caller ID.

"Over 812,000 households in Tennessee qualify for the Lifeline services - offering these participants the opportunity to have the same access and privileges many individuals take for granted when it comes to using cell phones," said Javier Rosado, Senior Vice President of Lifeline Services for TracFone. "The SafeLink Wireless service is truly unique because we are providing a service that no other company has made available before - a free cell phone and free monthly minutes to qualifying low income families," added Rosado. SafeLink Wireless offers low income families accessibility, freedom and the security in knowing that should an emergency occur - wherever they are, they will stay safe and stay connected.

Economic opportunities for low-income households

A recent study ("Cell Phones Provide Significant Economic Gains for Low-Income American Households," April 2008) analyzed the impact of mobile phones on low-income households. "In this day and age, the cell phone should be deemed an imperative necessity for the millions of low-income families who are far less likely to own them," said Nicholas P. Sullivan, the study's author and visiting scholar at Massachusetts Institute of Technology. "Our study showed cell phones can significantly boost the earning potential of these communities, and this connectivity vastly encourages their opportunities and remains central to their everyday survival," Sullivan stressed.

The study also revealed the cell phone is a critical component for personal safety, access to emergency services, and can potentially increase a low-income family's economic productivity and earning power. Other relevant survey findings included:

* Cell phones provide a "security blanket" and are "extremely important" for "emergency use."

* A cell phone is preferred to a landline phone for mobility and security purposes, and is preferred to a landline phone for emergency use by 3-1 ratio.

* 48% have used their phone to call or text during an emergency situation.

* 20% have received an emergency call or text on their cell phone.

* 32% have purchased a cell phone for a relative to use in emergency situations.

* 40% in blue-collar jobs say their cell phone has provided the opportunity to gain employment or make money.

Daily, millions of Americans depend on mobile telecommunications for a wide range of basic activities including: calling emergency services, searching for employment, staying connected with loved ones, and much more. Yet, for people who cannot afford cell phones, being part of today's connected world and performing these crucial day-to-day needs is near impossible.

Typically, families living below the poverty line struggle to pay their monthly bills, experience credit issues, and cannot afford traditional home phone and wireless services. Using public pay phones regularly pose problems and cell phone contracts often are difficult to maintain due to costly usage charges over long-term agreements. As a result, regular communications is a major dilemma for these families.

SAFELINK WIRELESS[R] SERVICE ELIGIBILITY OVERVIEW BY CITY

The following are opportunities per city specific to each state's low-income population:

CITY                                        >
LOW-INCOME POPULATION
Chattanooga                                 >
56,486
Clarksville                                 >
22,049
Hendersonville                              >
21684
Jackson                                     >
13,212
Johnson City                                >
22,988
Kingsport                                   >
36,728
Knoxville                                   >
78,097
Memphis                                     >
133,173
Nashville-Davidson--Murfreesboro--Franklin  >
128,548
TOTAL                                       >
512,965

Program Eligibility

Lifeline program eligibility varies by state but generally families may qualify for SafeLink Wireless service if their household income is not above 135 percent of the federal poverty income guidelines, or if they receive any of the following government assistance programs:

* Medicaid

* Supplemental Security Income (SSI)

* Low-Income Home Energy Assistance Program (LIHEAP)

* National School Lunch Program

* Federal Public Housing Assistance (Section 8)

* Food Stamps

* Temporary Assistance to Needy Families (TANF)

Families wanting to participate in the SafeLink Wireless service will need to provide proof of low-income qualification such as:

* 2007 state or federal tax return

* Three consecutive months of payroll statements, or paycheck stubs for 2008

* A Social Security statement of benefits

* A Veterans Administration statement of benefits

* A retirement/pension statement of benefits

* An Unemployment/Workmen's Compensation state of benefits

* A federal notice letter of participation in General Assistance