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WEDNESDAY - OCTOBER 9, 2002 - ISSUE NO. 34

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.

I am sending the newsletter out a couple of days early this week since I will be traveling again. Welcome to the new subscribers and to the new consulting clients.

WIRELESS NEWS

metrocall logo

For Immediate Release:
Wednesday, October 9, 2002

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

Metrocall Announces Consummation of
Reorganization, Exits Process with Improved
Financial and Organizational Structure

Alexandria, VA, Wednesday, October 9, 2002—Metrocall, Inc., one of the nation’s largest narrowband wireless data and messaging companies, today announced that its Plan of Reorganization (The Plan), which was confirmed by the United States Bankruptcy Court on September 26, 2002, became effective yesterday, October 8, 2002. This formal exit from the Chapter 11 process marks the completion of Metrocall's corporate and financial restructuring and coincides with the consummation of the pre-negotiated terms of the Plan, including the issuance of 1 million new common shares of Metrocall Holdings, Inc. (Holdings), which will be traded under the ticker symbol MTOHV on the Over-The-Counter Market.

"We are pleased to have completed our financial restructuring process and look forward to continuing our 37-year tradition of providing reliable wireless communications services to the mobile public," said William L. Collins III, Metrocall's Chairman and Chief Executive Officer. "The successful completion of this reorganization is due to the commitment and hard work of our employees and the confidence placed in us by our more than four million wireless subscribers nationally. Their support is greatly appreciated."

Vincent D. Kelly, Metrocall’s Chief Operating and Chief Financial Officer, added, "We are happy to have our pre-negotiated, consensual financial restructuring behind us. We look forward to moving into the next phase of our business strategy, providing cost effective, reliable communications products and services to our customers backed up by the lowest financial leverage relative to cash flow in our industry." Kelly continued, "The organizational adjustments which enabled us to operate our wireless networks seamlessly, and quickly conclude our restructuring without the need for debtor-in-possession financing, has strengthened our ability to compete moving forward."

Metrocall will continue to focus on its traditional subscriber base, emphasizing business development and retention of small business, government, healthcare and corporate customers.

Under the terms of the Plan, Metrocall’s prior senior secured debt of $133 million has been satisfied and discharged by (i) a new $60 million secured term note issued by Holdings' reorganized operating subsidiary, (ii) a new $20 million paid-in-kind note issued by Holdings, (iii) 5.3 million shares of new preferred stock having a $53 million initial liquidation preference to be issued by Holdings and (iv) 42% of the new common stock of Holdings (subject to dilution of up to 7% for options that may be granted to employees and directors under a new stock option plan). Metrocall’s general unsecured creditors’ claims, totaling approximately $751 million, including the holders of prior unsecured public notes, have been satisfied and discharged by pro rata distributions of (i) 500,000 shares of new preferred stock of Holdings having a $5 million initial liquidation preference and (ii) 58% of the new common stock (also subject to dilution of up to 7% for the aforementioned stock option plan). Pursuant to the Plan, ninety-five percent of the total voting rights of Holdings are with the preferred stock until such stock is fully redeemed. General unsecured creditors of Holdings' wholly owned subsidiaries will receive payment of 100% of the principal amount of their allowed claims. The former equity holders of Metrocall, Inc., will receive no distributions and their stock and options have been canceled.

Shares of Metrocall Holdings, Inc. Common Stock will be listed on the Over-The-Counter Market under the symbol MTOHV with CUSIP number 59164X 10 5. Metrocall Holdings, Inc., Class-A Preferred stock will trade under the symbol MTOPV with CUSIP number 59164X 20 4.

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.

Congratulations to our colleagues at Metrocall.


GOOD DEALS
WANT TO BUY WANT TO SELL

Hi I need a Microlink L20T used or refurbished to hook up to our paging encoder (Glenayre protocol) Where can I find it?

Regards,

Jean Thibault
Groupe CLR
jthibault@groupeclr.com

Daviscomms TMR (Telemetry Messaging Receiver). 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.

Brad,

Do you have a source for discounted new (reconditioned considered) 158.100 Motorola "Nucleus II" transmitters in 125 W or 350 W (preferred)? Our need is not urgent, but I would pick-up a couple of spares if they are priced right.

Doug Feavel
dfeavel@mcleodusa.com

 
We have a colleague in Mexico that would like to buy some pagers: “like, $10 to $15 US Dollars for 1-way and $50 to $75 for 2-way.” (900 MHz naturally) Can anyone help him?  

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.


ADIÓS AMIGOS
I am available as a consultant for wireless projects. If you have a requirement for my services, related to paging technology, telemetry, or wireless messaging, please send me an e-mail with a description of your needs.

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

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