Exhibit 99.1
Contacts:
David Wonderling Phil Piemonte
Motient Hill and Knowlton
703-716-6375 703-476-2241
[email protected] [email protected]
MOTIENT CORPORATION FORMS NEW SATELLITE-BASED SUBSIDIARY
WITH COLUMBIA CAPITAL, SPECTRUM EQUITY & TELCOM VENTURES
New Subsidiary Provides $50 Million Cash Infusion For Motient Corporation
RESTON, VA. -- June 29, 2000 -- Motient Corporation (NASDAQ: MTNT) today
announced the creation of a newly formed subsidiary, Motient Satellite Ventures
LLC, to enhance existing and evaluate potential applications of Motient's
Satellite Network. The new subsidiary includes an investment group made up of
Columbia Capital, Spectrum Equity Investors and Telcom Ventures L.L.C.
The investment group will initially invest $50 million, to acquire a 20 percent
ownership in the new subsidiary, which may be converted into stock of the parent
company. The group also has an option to increase their investment over the next
two years to a majority stake in the venture.
"With this agreement we are able to highlight the intrinsic value of our
satellite-based asset, and provide Motient with added liquidity to accelerate
growth in all aspects of our business," said Walter V. Purnell, Jr., president
and chief executive officer of Motient. "We are pleased to join our new partners
and investors in making Motient Satellite Ventures a mutually beneficial
business relationship."
About Motient
Motient (www.Motient.com) owns and operates the largest integrated
terrestrial/satellite network and provides a wide range of two-way mobile and
Internet communications services principally to business-to-business customers
and enterprises. The company provides its industry-leading eLinkSM two-way
wireless email service to customers accessing email through corporate servers,
- MORE -
<PAGE>
Page 2
Internet Service Provider (ISP) and Mail Service Provider (MSP) accounts, and
paging network suppliers. Motient serves a variety of markets including mobile
professionals, telemetry, transportation, field service, and nationwide voice
dispatch offering coverage to all 50 states, Puerto Rico, the U.S. Virgin
Islands, and hundreds of miles of U. S. coastal waters.
# # #
Factors that could cause actual results to differ materially from those in the
forward-looking statements in this news release are described in Motient
(formerly American Mobile Satellite) Corporation's registration statement on
Form S-3 (File No. 333-81459) and in Motient (formerly American Mobile's) annual
report on Form 10-K for the year ended December 31, 1999 and its other periodic
filings and reports with the Securities and Exchange Commission. Copies of such
reports and filings are available upon request from Motient Corporation's
Investor Relations Department.
