MCLEAN, Va.-Nextel Communications Inc. announced it has completed agreements and
consummated its previously announced transaction with Nextel Partners Inc. to provide enhanced specialized mobile
radio services under the Nextel brand name, targeting mid-sized and smaller markets throughout the United
States.
During the next three years, Nextel Partners has agreed to build digital wireless systems containing a total of
33 million pops in 39 markets. Nextel has agreed to transfer certain Federal Communications Commission licenses in
these markets to Nextel Partners in exchange for $131 million of Nextel Partners equity. In addition, Nextel Partners
has acquired from Nextel recently launched operations and related assets in five markets covering about 4.5 million
pops. In exchange for such assets and for other capital and operating expenses previously incurred by Nextel in the
Nextel Partners territory, Nextel has received cash payments totaling about $125 million.
Nextel Partners has raised
$400 million of proceeds from the sale of its senior discount notes and $275 million of senior debt. Additionally, equity
investors have committed $306 million in cash, equipment credits and FCC licenses.
