AIRTHREAD ACQUISITION

Revenue Projections:

Operating Assumptions

2008

2009

2010

2011

2012

4,194.3
14.0%

4,781.5
14.0%

5,379.2
12.5%

5,917.2
10.0%

6,331.4
7.0%

Equipment Revenue
Equipment Revenue/Service Revenue (1)

314.8
7.5%

358.8
7.5%

403.7
7.5%

444.1
7.5%

475.2
7.5%

Operating Expenses:
System Operating Expenses
System Operating Exp./Service Revenue

838.9
20.0%

956.3
20.0%

1,075.8
20.0%

1,183.4
20.0%

1,266.3
20.0%

Cost of Equipment Sold

Equipment COGS

755.5
240.0%

861.2
240.0%

968.9
240.0%

1,065.8
240.0%

1,140.4
240.0%

Selling, General & Administrative

SG&A/Total Revenue

1,803.6
40.0%

2,056.2
40.0%

2,313.2
40.0%

2,544.5
40.0%

2,722.6
40.0%

Depreciation & Amortization

705.2

804.0

867.4

922.4

952.9

Tax Rate

40.0%

40.0%

40.0%

40.0%

40.0%

41.67x
154.36x
1.38%
35.54x
14.01x
6.85x

41.67x
154.36x
1.38%
35.54x
14.01x
6.85x

41.67x
154.36x
1.38%
35.54x
14.01x
6.85x

41.67x
154.36x
1.38%
35.54x
14.01x
6.85x

41.67x
154.36x
1.38%
35.54x
14.01x
6.85x

631.3
14.0%

719.7
14.0%

867.4
15.0%

970.1
15.3%

1,055.0
15.5%

1,594.3
4.43
184.53

3,873.7
10.76
448.35

4,357.9
12.11
504.39

4,793.7
13.32
554.83

5,129.2
14.25
593.67

Service Revenue
Service Revenue Growth

Working Capital Assumptions (1):

Accounts Receivable
Days Sales Equip. Rev.
Prepaid Expenses
Accounts Payable
Deferred Serv. Revenue
Accrued Liabilities
Capital Expenditures (2):
Capital Expenditures
Cap-x/Total Revenue

(1) Based on a 360-day year. Days Payable, Deferred Service Revenue, and Days Accrued Liabilities are
based on total cash operating expenses.
(2) Includes investments in property, plant & equipment, as well as licenses and customer lists.

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AIRTHREAD ACQUISITION

Licensing Agreemts

Total Consolidated Markets:

Region
Population
Central US
65,096
Mid-Atlantic
11,677
New England
2,830
Northwest
2,287
New York
481
Total
82,371

Customers
3,846
1,180
518
431
147
6,122

Penetration
5.9%
10.1%
18.3%
18.8%
30.6%
7.4%

Total Operating Markets:

Region
Population
Central US
32,497
Mid-Atlantic
7,346
New England
2,344
Northwest
2,287
New York
481
Total
44,955

Customers
3,846
1,180
518
431
147
6,122

Penetration
11.8%
16.1%
22.1%
18.8%
30.6%
13.6%

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AIRTHREAD ACQUISITION

Customer Data:
Net Customer Additions
Cost Per Customer Addition
Cost of New Customer Additions
Cost of Equipment Sold/Equipment Revenue

Monthly Churn Rate

Revenue Per Minute

Monthly ARPU
Customer Minutes Per Month
Revenue Per Minute

Customer Operating Data

2005

2006

2007

301
372
111,972

310
385
119,350

477
487
232,299

251.3%

219.9%

239.8%

2.1%

2.1%

1.7%

2005

2006

2007

45.24
625
0.0724

47.23
704
0.0671

51.13
859
0.0595

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AIRTHREAD ACQUISITION

Income Statement

Historical Operating Results

Operating Results:
Service Revenue
Plus: Equipment Sales
Total Revenue
Less: System Operating Expenses
Less: Cost of Equipment Sold
Less: Selling, General & Administrative
EBITDA
Less: Depreciation & Amortization
EBIT
Less: Interest Expense
Plus: Equity in Earnings of Affiliates
Plus: Gains (Losses) on Investments
Plus: Other Income
EBT
Less: Taxes
Income Before Minority Interest
Less: Minority Interest
Net Income

2005

2006

2007

2,827.0
203.7
3,030.8
604.1
511.9
1,217.7
697.0
490.1
206.9
84.9
66.7
18.1
54.5
261.3
95.9
165.5
10.5
155.0

3,214.4
258.7
3,473.2
639.7
568.9
1,399.6
865.0
555.5
309.5
93.7
93.1
50.8
(46.6)
313.1
120.6
192.5
13.0
179.5

3,679.2
267.0
3,946.3
717.1
640.2
1,555.6
1,033.3
582.3
451.1
84.7
90.0
83.1
7.0
546.5
216.7
329.8
15.1
314.7

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AIRTHREAD ACQUISITION

Balance Sheet

Assets:

2005

2006

2007

Cash & Cash Equivalents

Marketable Securities
Accounts Receivable
Inventory
Prepaid Expenses
Deferred Taxes
Other Current Assets
Total Current Assets

29.0
0.0
362.4
92.7
32.1
8.2
15.5
539.9

32.9
249.0
407.4
117.2
35.0
0.0
13.4
854.9

204.5
16.4
435.5
101.0
41.6
18.6
16.2
833.8

2,553.0
1,362.3
47.6
225.4
172.1
4.7
481.2
30.0
5,416.2

2,628.8
1,494.3
26.2
4.9
150.3
4.5
485.5
31.1
5,680.6

2,595.1
1,482.4
15.4
0.0
157.7
4.4
491.3
31.8
5,611.9

254.1
111.4
42.9
36.7
0.0
135.0
0.0
0.0
82.6
662.7

254.9
123.3
47.8
26.9
26.3
35.0
159.9
88.8
93.7
856.7

260.8
143.4
59.2
43.1
0.0
0.0
0.0
0.0
97.7
604.2

1,001.4
159.9
25.8
647.1
90.2
46.2

1,001.8
0.0
0.0
601.5
127.6
62.9

1,002.3
0.0
0.0
554.4
126.8
84.5

41.9

36.7

43.4

1,375.0
1,366.0
5,416.2

1,378.9
1,614.4
5,680.6

1,404.1
1,792.1
5,611.9

Property, Plan & Equipment

Licenses
Customer Lists
Marketable Equity Securities
Investments in Affiliated Entities
Long Term Note Receivable
Goodwill
Other Long Term Assets
Total Assets
Liabilities & Owners' Equity:
Accounts Payable
Deferred Revenue & Deposits
Accrued Liabilities
Taxes Payable
Deferred Taxes
Note Payable
Forward Contract
Derivative Liability
Other Current Liabilities
Total Current Liabilities
Long Term Debt
Forward Contracts
Derivative Liability
Deferred Tax Liability
Asset Retirement Obligation
Other Deferred Liabilities
Minority Interest
Common Stock & Paid-In Capital
Retained Earnings
Total Liabilities & Owners' Equity

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AIRTHREAD ACQUISITION

Amortization Schedule

Term Loan Amortization

Payment
41

Annual
Interest
5.50%

Principal

Date:
1/31/2008
2/28/2008
3/31/2008
4/30/2008
5/31/2008
6/30/2008
7/31/2008
8/31/2008
9/30/2008
10/31/2008
11/30/2008
12/31/2008
1/31/2009
2/28/2009
3/31/2009
4/30/2009
5/31/2009
6/30/2009
7/31/2009
8/31/2009
9/30/2009
10/31/2009
11/30/2009
12/31/2009
1/31/2010
2/28/2010
3/31/2010
4/30/2010
5/31/2010
6/30/2010
7/31/2010
8/31/2010
9/30/2010
10/31/2010
11/30/2010
12/31/2010
1/31/2011
2/28/2011
3/31/2011
4/30/2011
5/31/2011

41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41

17
17
17
17
17
17
17
16
16
16
16
16
16
16
16
16
15
15
15
15
15
15
15
15
14
14
14
14
14
14
14
14
14
13
13
13
13
13
13
13
12

24
24
24
24
24
24
24
24
24
25
25
25
25
25
25
25
25
25
26
26
26
26
26
26
26
26
27
27
27
27
27
27
27
27
28
28
28
28
28
28
28

Balance
3,758

Amortization
Period
120

3,734
3,710
3,687
3,663
3,639
3,615
3,590
3,566
3,542
3,517
3,492
3,468
3,443
3,418
3,393
3,367
3,342
3,317
3,291
3,265
3,239
3,214
3,188
3,161
3,135
3,109
3,082
3,055
3,029
3,002
2,975
2,948
2,920
2,893
2,865
2,838
2,810
2,782
2,754
2,726
2,698

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41

Payment
41

Annual
Interest
5.50%

Principal

Date:

Balance
2,698

Amortization
Period
84

6/30/2011
7/31/2011
8/31/2011
9/30/2011
10/31/2011
11/30/2011
12/31/2011
1/31/2012
2/28/2012
3/31/2012
4/30/2012
5/31/2012
6/30/2012
7/31/2012
8/31/2012
9/30/2012
10/31/2012
11/30/2012
12/31/2012

41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
2,176

12
12
12
12
12
12
12
11
11
11
11
11
11
11
10
10
10
10
10

28
29
29
29
29
29
29
29
29
30
30
30
30
30
30
30
31
31
2,166

2,669
2,641
2,612
2,583
2,554
2,525
2,496
2,467
2,437
2,408
2,378
2,348
2,318
2,288
2,257
2,227
2,196
2,166
0

42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60

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6

AIRTHREAD ACQUISITION

Comparable Companies:
Universal Mobile
Neuberger Wireless
Agile Connections
Big Country Communications
Rocky Mountain Wireless
Average

Wireless Comparables

Equity
Market Value
65,173
94,735
37,942
47,314
5,299

Net
Debt
60,160
27,757
9,144
15,003
2,353

Debt/
Value
48.0%
29.3%
19.4%
24.1%
30.7%
30.3%

Debt/
Equity
92.3%
41.4%
24.1%
31.7%
44.4%
46.8%

Equity
Beta
0.86
0.89
1.17
0.97
1.13
1.00

Revenue
43,882
42,684
34,698
38,896
4,064

EBIT
11,795
7,020
1,631
6,702
510

EBITDA
16,949
14,099
9,914
12,614
1,028

Net
Income
3,794
4,103
(30)
3,384
240

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