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FRIDAY - SEPTEMBER 27, 2002 - ISSUE NO. 32

Dear Friends and Industry Colleagues,

This is my weekly newsletter about Wireless Data and Radio Paging. You are receiving this message because you have either communicated with me in the past about a wireless topic, or your address was included in another e-mail that I received on the same subject. This is not a SPAM. If you have received this message in error, or you are not interested in these topics, please click here, then click on “send” and you will be promptly removed from the mailing list.

WIRELESS NEWS

metrocall logo

For Immediate Release:
Wednesday, September 25, 2002

Metrocall Contact:
Timothy J. Dietz
Director, Corporate Communications
(703) 660-6677x6231
dietzt@metrocall.com

Metrocall Announces Confirmation of Plan of Reorganization

Expects to Emerge in Early October

Wednesday, September 25, 2002 – (OTC Bulletin Board: MCLLQ), Metrocall, Inc., one of the nation’s largest narrowband wireless data and messaging companies, announced today that its Plan of Reorganization was confirmed by the United States Bankruptcy Court and expects to emerge from the restructuring process in early October when the plan becomes effective.

Vincent D. Kelly, Metrocall’s Chief Operating and Chief Financial Officer, commented, "We are pleased our plan has been confirmed by the court and was supported by an overwhelming majority of all voting classes. We look forward to emerging as a newly reorganized company in early October. This successful restructuring represents the collective efforts of Metrocall, our creditors, our employees and valued customers."

Throughout its restructuring proceedings, which commenced June 3, 2002, Metrocall’s wireless data networks and customer support services continued to operate seamlessly. "We continue to exceed the service revenues, operating cash flow and subscriber targets provided for in our restructuring business plan," Mr. Kelly noted. Metrocall’s reorganization which was completed without any debtor-in-possession financing will result in substantial debt elimination and de-leveraging. Metrocall will continue to focus on its traditional subscriber base, emphasizing business development and retention of small business, government, healthcare and corporate customers.

As previously announced and in accordance with the pre-negotiated plan, Metrocall’s $133 million of existing senior secured debt will be exchanged for (i) a $60 million secured term note to be issued by the reorganized operating entity, (ii) a $20 million paid-in-kind note to be issued by the reorganized holding company, (iii) preferred stock to be issued from the reorganized holding company with a $53 million liquidation preference and (iv) 42% of the new common stock of the reorganized holding company (subject to dilution of up to 7% for options provided to employees under a new stock option plan to be implemented after the effective date of the plan). Metrocall’s general unsecured creditors’ claims, totaling approximately $751 million, including the holders of its unsecured public notes, will be exchanged for a pro rata share of (i) preferred stock of the reorganized holding company with a $5 million liquidation preference and (ii) 58% of the new common stock to be issued (also subject to dilution of up to 7% for the aforementioned stock option plan to be implemented). Pursuant to the plan, ninety-five percent of the total voting rights shall be with the preferred stock until such stock is fully redeemed. Metrocall's plan also provides that general unsecured creditors of its wholly owned subsidiaries will receive payment of 100% of the principal amount of their allowed claims upon effectiveness of the plan. The current equity holders of the Company will receive no distributions under the plan and their stock, options and warrants will be canceled when the plan becomes effective.

About Metrocall, Inc.

Metrocall, Inc. headquartered in Alexandria, Virginia, is one of the largest narrowband wireless data and messaging companies in the United States, providing both products and services to over four million business and individual subscribers. Metrocall was founded in 1965 and currently employs approximately 2,000 people nationwide. The company currently offers two-way interactive messaging, wireless e-mail and Internet connectivity, cellular and digital PCS phones, as well as one-way messaging services. Metrocall operates on multiple nationwide, regional and local networks. Also, Metrocall offers integrated resource management systems and communications solutions for business and campus environments. For more information on Metrocall please visit our Web site and on-line store at www.Metrocall.com or call 800-800-2337.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This press release includes "forward-looking statements," within the meaning of the federal securities laws, that involve uncertainties and risks. These include statements regarding events or developments that Metrocall expects or anticipates will occur in the future, such as statements about Metrocall's plans to address a restructuring of Metrocall's balance sheet. A number of risks and uncertainties could cause actual results, events, and developments to differ from expectations. Business Risks include the possibility that two-way service may lack vendor support, quantity and quality. Please refer to Metrocall's most recent annual report on Form 10-K, and any subsequently filed reports on Form 10-Q and Form 8-K, as well as its other filings with the Securities and Exchange Commission, for a complete discussion of these and other important factors that could cause actual results to differ materially from those projected by these forward-looking statements.


FCC REDESIGNS COMMERCIAL PAGING WEBSITE
“The Federal Communications Commission's Wireless Telecommunications Bureau announces the redesign of its Commercial Paging (Paging) service website located at the URL:http://wireless.fcc.gov/services/paging/. The new site employs the retooled navigational structure and layout designed to improve usability for all bureau service websites. The design used for the website emphasizes and better organizes the information most frequently sought by paging licensees and members of the general public interested in paging issues. Site visitors will find quick and easy access to:

Also, for user convenience, the bureau compiles, lists, and provides access to recent official FCC documents related to paging rules and licensing on a releases page. The redesign is part of the bureau's continuing effort to enhance web-based services for the public.

For questions or comments concerning the website, contact Bobby Brown at: (202) 418-0539 (e-mail: babrown@fcc.gov). For all other paging issues, contact the Commercial Wireless Division at: (202) 418-0620.”

Thanks to Ken Hardman of MOIR & HARDMAN for this information.


From: RCR Wireless News

“Breaking News Kane cancer lawsuit tossed out, lawyers to challenge
Sept. 27, 2002 11:02 AM EST
WASHINGTON—A state appeals court in Illinois has affirmed a lower court ruling that threw out a cancer lawsuit brought by former Motorola Inc. engineer Robert Kane. Kane claimed the testing of mobile phones caused his brain cancer. Kane said his lawyers plan to challenge the Illinois appellate court decision in state supreme court.

The new ruling comes as a Baltimore federal judge nears a decision on whether to allow an $800 million cancer lawsuit against the mobile phone industry to go to trial. U.S. District Judge Catherine Blake said she will rule by Sept. 30. There are about a dozen brain-cancer suits currently pending against industry. Most of them have been transferred to Blake.”


From: RCR Wireless News

“Nokia Corp. released its long-awaited GSM/Wideband-CDMA mobile phone, the 6650, a major step for carriers worldwide looking to build out W-CDMA networks.

Nokia said the phone works on 900/1800 MHz GSM frequencies and on the W-CDMA protocol. Nokia said one of the benefits of the W-CDMA radio is that it allows users to run data sessions while also having a voice conversation.”

Since my background has included a lot of work with international networks, I found this article very interesting. I have long supported open protocol standards. I was one of 24 managers on the team at Motorola responsible for the development of the FLEX™ protocol and I cast the only vote against keeping the protocol proprietary to Motorola. Earlier I had participated briefly in the POCSAG committee and didn't want to see that whole Golay (GSC) vs. POCSAG debacle repeat itself. I think my vote, and my position paper supporting it, served their purposes well since Motorola did ultimately make FLEX much easier to license than Golay.


GOOD DEALS
WANT TO BUY WANT TO SELL

WE ARE IN THE MARKET FOR LCDs FOR ADVISOR PRO / SCRIPTOR PAGERS. THE MODEL NUMBERS FOR THE PAGERS ARE: 0102720 J01 AND 0102719 J01.

From: Milton Grey, my friend in Jamaica. Please contact him directly.

I have found a great pager that receives alphanumeric text and speaks the message with a synthesized voice. It is only available with POCSAG coding on VHF or UHF, but this product has great potential for blind or visually handicapped people. If you have an interest in this device please let me know. I am talking to the manufacturer about distribution possibilities.
  There have been more requests for information on the new Daviscomms TMR (Telemetry Messaging Receiver) than any product that I have ever mentioned in this newsletter. This is a one-way FLEX telemetry device which is available in the following frequency ranges:
  • 135 to 174 MHz
  • 278 to 286 MHz
  • 929 to 932 MHz

I have prepared an information package and ordering guide. If you would like to have a copy, please click here.

If you have any wireless equipment that you would like to buy or sell, please let me know. Everything that is offered for sale in this newsletter is on the honor system. There is no charge for the listing, but if a sale is made, I ask the seller to send me a 10% commission, much the same as the voluntary payments that are requested on the Internet for shareware.


PAGING TECHNICIANS NEEDED
One of the major paging companies needs technicians in New York, Massachusetts, and Chicago, Illinois. If you know of any qualified people who are available, please let me know and I will pass the information along.

EDITORIAL COMMENTS

I usually try to keep my comments about the state of our industry very positive, but looking at this past week's headlines makes me wonder about the future:

From: RCR Wireless News (partial quotation)

Breaking News:

MobilCom cuts staff, halts 3G rollout
Sept. 27, 2002 1:06 PM EST

SBC cuts 11,000 workers, capital expenditures
Sept. 27, 2002 12:12 PM EST

GoAmerica announces restructuring efforts, aligns with EarthLink and cuts half of staff
Sept. 26, 2002 1:23 PM EST

Nortel lowers outlook, takeover rumors continue
Sept. 26, 2002 1:02 PM EST

Handspring cuts 20% of staff
Sept. 26, 2002 11:54 AM EST

DoCoMo considering write down of overseas losses
Sept. 26, 2002 11:51 AM EST

Sprint PCS warns of customer loss
Sept. 23, 2002 12:10 PM EST

Seven slashes jobs
Sept. 20, 2002 12:48 PM EST

Alcatel to cut 20,000 more jobs, revises quarterly sales forecast
Sept. 20, 2002 12:44 PM EST

I will admit that the headlines I cut from the above list are largely positive, but the ones that remain are not very encouraging.


ADIÓS AMIGOS
That's all for this week. Please, someone send me some GOOD NEWS.

UNTIL NEXT WEEK

PAGING
INFORMATION
RESOURCE

Best regards,

BFD signature
Brad Dye
Wireless Data Consultant
3523 McKinney Ave. # 536
Dallas, TX 75204-1474 USA
Telephone: 972-523-8258
Consulting and Job Search Page left arrow click here to help rescue me from starvation

FLEX, ReFLEX, and InFLEXion are trademarks or registered trademarks of Motorola, Inc.
CreataLink is a trademark of SmartSynch Communications Corp.

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