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NEWS RELEASE
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[NEXTEL LOGO] NEXTEL COMMUNICATIONS, INC.
2001Edmund Halley Drive
Reston, VA 20191
703 433-4000
CONTACTS:
INVESTORS: PAUL BLALOCK (703) 433-4300
MEDIA: BEN BANTA (703) 433-4700
NEXTEL CEO DONAHUE SPEAKS AT INVESTOR CONFERENCE
RESTON, Va. - October 5, 2000 - Nextel Communications. Inc., (NASDAQ:NXTL), CEO
Tim Donahue confirmed company performance during the third quarter 2000 and
discussed additional issues of importance to the company. The following excerpts
of an investor presentation given Thursday morning in New York are intended to
provide all investors with meaningful excerpts of company comments consistent
with the new fair disclosure guidelines of the Securities and Exchange
Commission scheduled to take effect later this month.
"Subscriber growth continues to be strong in the third quarter," said Tim
Donahue, Nextel's CEO. "We expect to report domestic subscriber additions
slightly in excess of 540,000 net additions later this month, and we expect that
our third quarter ARPU will meet or exceed our second quarter reported ARPU, and
we anticipate reporting that we continue to experience approximately 2% churn
during the third quarter."
"Through recent spectrum acquisitions and efforts over the last few years,
Nextel has doubled its frequency position in the top 100 U.S. markets since we
launched our first digital service in Chicago back in 1996. Today, Nextel has on
average across the U.S. an approximate spectrum position in excess of 22 MHz of
frequency in the 700, 800 and 900 MHz frequency bands. While there are
limitations on using 700 MHz channels, this spectrum increases our flexibility
going forward and we remain quite positive on our ability to continue to offer
innovative wireless communications solutions aimed primarily at business users."
"Proof of our business focus can be found in the fact that over 90% of our
monthly service bills are paid by a business. While the wireless industry is
certainly becoming more competitive for low cost consumer wireless services,
business growth continues to be our focus."
"Another area of success where Nextel continues to make significant progress is
in the area of wireless data services. Nextel's IP-based wireless data services
are now available across the Nextel National Network and typically provide our
customers 3-second round trips to the Internet. We anticipate announcing total
data subscribers in service later this month in excess of 200,000 on the Nextel
National Network as of the end of September."
Nextel intends to offer additional comments regarding third quarter results on
its conference call later this month.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995. A number of the matters and subject areas discussed in this press release
that are not historical or current facts deal with potential future
circumstances and developments. The discussion of such matters and subject areas
is qualified by the inherent risks and uncertainties surrounding future
expectations generally, and also may materially differ from Nextel's actual
future experience involving any one or
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more of such matters and subject areas. Nextel has attempted to identify, in
context, certain of the factors that they currently believe may cause actual
future experience and results to differ from Nextel's current expectations
regarding the relevant matter or subject area. Such risks and uncertainties
include those that are described from time to time in Nextel's reports filed
with the SEC, including Nextel's Annual Report on Form 10-K for the fiscal year
ended December 31, 1999, and in the 10-Qs for the first and second quarters of
2000 filed by Nextel.
Nextel Communications, Inc., based in Reston, VA, is the leading provider of
fully integrated wireless communications services and has built the largest
guaranteed all-digital wireless network in the United States covering thousands
of communities across the United States. Nextel and Nextel Partners, Inc.,
currently serve 98 of the top 100 U.S. markets. Through recent market launches,
Nextel and Nextel Partners' service is available today in areas of the U.S.
where approximately 193 million people live or work. The Nextel National Network
offers a fully integrated wireless communications tool with digital cellular,
text/numeric paging, wireless Internet access and Nextel Direct Connect(R) - a
digital two-way radio feature. In addition, through Nextel International, Inc.,
Nextel has wireless operations and investments in Canada, Mexico, Argentina,
Brazil, the Philippines, Peru, Chile and Japan. Please visit our website at
http://www.nextel.com.
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