American Tower, U.S. Wireless Enter 2,500 Site Co-location and Turnkey Services Agreements as Part of Strategic Alliance
BOSTON and SAN RAMON, Calif., May 17, 2000 (BUSINESS WIRE) -- American Tower
Corporation (NYSE:AMT) and U.S. Wireless Corporation (Nasdaq:NMS:USWC,
Frankfurt:USP) have formed a strategic alliance to accelerate the deployment of
a wireless location network that carriers will use to provide wireless phone
users with emergency E-911 caller location assistance and other location
enhanced services such as real-time traffic updates, navigational assistance and
location-based directory assistance.
To establish its national location network, U.S. Wireless has signed a
co-location agreement under which it will lease 2,500 American Tower sites for
its planned 100-market wireless network deployment. Simultaneously, to
facilitate the network's build-out, American Tower will provide U.S. Wireless
with nationwide turn-key network deployment services, including RF engineering,
network design, site acquisition, project management, component supply and site
installation. American Tower has also agreed to support U.S. Wireless' marketing
efforts with wireless carriers.
Separately, American Tower has agreed to invest $22.5 million in U.S. Wireless'
Series C Convertible Preferred Stock. The Preferred Stock is convertible to
Common Stock at the option of American Tower at a conversion price of $19.03 per
share, subject to adjustment in certain events. Dividends on the Convertible
Preferred Stock will be 6 1/2%, payable semi-annually, with the first three
years either PIK (payment-in-kind) or cash pay, at U.S. Wireless' option, and
cash pay thereafter. In addition, a member of American Tower's senior management
will join the U.S. Wireless Board of Directors. The proceeds of the investment
will be used by U.S. Wireless to accelerate the marketing and deployment of its
national location network platform and to fund additional development and
general corporate expenses.
Jim Eisenstein, Chief Development Officer of American Tower, stated, "U.S.
Wireless has a winning combination of attributes--innovative technology, a
promising business strategy and an excellent management team. Their unique
RadioCamera system will help wireless carriers meet the FCC's E-911 mandate as
well as offer value-added services. We understand that quality and speed to
market are essential to the success of U.S. Wireless' network deployment and
look forward to working with them every step of the way, from RF engineering
through installation to ongoing system support, to assure that these goals are
met."
Dr. Oliver Hilsenrath, Chairman and CEO of U.S. Wireless, said, "Our alliance
with American Tower, the largest tower company in the U.S., is a critical step
in our plan to provide a nationwide shared mobile location platform. American
Tower is uniquely positioned to help us achieve our goals through its nationwide
footprint and turnkey network development services. The co-location agreement
for 2,500 tower sites establishes much of U.S. Wireless' national footprint in
one broad stroke. Equally important, by outsourcing network deployment, U.S.
Wireless can simultaneously build out multiple markets, while focusing on its
core competency--creating and providing high quality location information and
mobile content."
About American Tower
American Tower is the leading independent owner operator and developer of
broadcast and wireless communications sites in North America. Giving effect to
pending transactions, American Tower operates over 10,600 sites in the United
States, Mexico and Canada, including approximately 300 broadcast tower sites. Of
the 10,600 sites, approximately 9,400 are owned or leased towers and over 1,200
are managed and lease/sublease sites. Based in Boston, American Tower has
regional hub offices in Boston, Atlanta, Chicago, Houston, San Francisco and
Mexico City. For more information about American Tower Corporation and ATC
Teleports, please visit our web sites www.americantower.com and
www.atcteleports.com.
About U.S. Wireless
U.S. Wireless is powering the next generation of instant wireless information
services and mobile content. Through a national network of wireless location
systems, based on the company's proprietary RadioCamera(TM) system, U.S.
Wireless will enable wireless carriers and others to offer a rich blend of
location-enhanced services including life-saving 911 caller pinpointing,
localized news and traffic updates, enhanced directory assistance, vehicle and
asset tracking, and carrier network management services.
U.S. Wireless plans to build and operate its nationwide location service bureau
in 100 major markets across the United States, beginning with the Washington,
D.C./Baltimore metro area. For more information about U.S. Wireless and its
RadioCamera(TM) network, please visit the Web site at www.uswcorp.com.
NOTE: RadioCamera(TM)is a trademark of U.S. Wireless Corporation.
This press release contains "forward-looking statements" concerning future
expectations, plans or strategies that involve a number of risks and
uncertainties. The Company wishes to caution readers that certain factors may
have affected the Company's actual results and could cause results for
subsequent periods to differ materially from those expressed in any
forward-looking statement made by or on behalf of the Company. Such factors
include, but are not limited to (i) substantial capital requirements and
leverage principally as a consequence of its ongoing acquisitions and
construction activities, (ii) dependence on demand for wireless communications,
use of satellites for internet data transmission, and implementation of digital
television, (iii) the success of the Company's tower construction program and
(iv) the successful operational integration of the Company's business
acquisitions. The Company undertakes no obligation to update forward-looking
statements to reflect subsequently occurring events or circumstances
CONTACT: American Tower Corporation
Anne Alter
(617) 375-7500
URL: http://www.businesswire.com
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