Cingular Wireless and Sunshine PCS Corporation Agree to Terms for Spectrum Licenses
Sunshine PCS agrees to sell Cingular three Florida PCS licenses for $13.75 million
Atlanta and New York - August 18, 2003 - Sunshine PCS Corporation (OTC: SUNPA.PK) has entered into a definitive agreement with Cingular Wireless in which Cingular will acquire three licenses in Florida for $13.75 million. The licenses are for spectrum in markets where Cingular currently has voice and data operations.
Atlanta and New York - August 18, 2003 - Sunshine PCS Corporation (OTC: SUNPA.PK) has entered into a definitive agreement with Cingular Wireless in which Cingular will acquire three licenses in Florida for $13.75 million. The licenses are for spectrum in markets where Cingular currently has voice and data operations.
Under terms of the deal, Cingular would pay $13.75 million in cash, and obtain FCC authorization to operate on 15 MHz of broadband PCS (1900 MHz) spectrum in the following markets: Tallahassee, Panama City and Ocala. Sunshine PCS and Cingular also entered into other commercial arrangements to facilitate service in these markets.
The sale requires approval by the shareholders representing a majority of the voting power of all outstanding shares of Sunshine PCS. In addition, completion of the sale is subject to the consent of the Federal Communications Commission to the transfer of the licenses.
In connection with the transaction, Sunshine PCS has reached an agreement with Lynch Interactive Corporation, which owns all of the outstanding shares of the three series of Preferred Stock of Sunshine PCS, to acquire those shares for a total of approximately $7.2 million. Sunshine PCS also has reached an agreement with the holder of its 3,069,313 shares of Class B Common Stock to reacquire such shares for $.20 per share. The acquisition of both the Preferred Stock and Class B Common Stock would coincide with the sale of the licenses to Cingular.
With regard to the remaining sale proceeds, Sunshine PCS is in the process of evaluating all of its alternatives and will consider all options with regard to their potential use.
ABOUT CINGULAR WIRELESS
Cingular Wireless, a joint venture between SBC Communications (NYSE - SBC) and BellSouth (NYSE - BLS), serves more than 23 million voice and data customers across the United States. A leader in mobile voice and data communications, Cingular is the only U.S. wireless carrier to offer Rollover, the wireless plan that lets customers keep their unused monthly minutes. Cingular has launched the world's first commercial deployment of wireless services using Enhanced Data for Global Evolution (EDGE) technology. Cingular provides cellular/PCS service in 43 of the top 50 markets nationwide, and provides corporate e-mail and other advanced data services through its GPRS, EDGE and Mobitex packet data networks. Details of the company are available at
http://www.cingular.com.
ABOUT SUNSHINE PCS
Sunshine PCS Corporation (OTC: SUNPA.PK), as the successor to Fortunet Communications, L.P., owns three 15-megahertz PCS licenses for Tallahassee, Panama City and Ocala, Florida, covering a population of approximately 900,000.
Source: CINGULAR WIRELESS
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