Sprint Nextel Buys Alamosa in $4.3B Deal

RESTON, Va. & LUBBOCK, Texas, Nov. 22 -- Wireless Commmunications provider Sprint Nextel Corp. is buying its largest affiliate, Alamosa Holdings Inc., for approximately $4.3 billion, including $900 million of Alamosa's debt. The deal gives Sprint Nextel 1.5 million new customers and resolves a lawsuit between the two parties.

Lubbock-based Alamosa provides Sprint PCS services in 19 states, serving approximately 1.48 million direct wireless subscribers. It is the largest Sprint PCS wireless affiliate and employs about 1300 people. Alamosa has had the exclusive right to provide digital wireless mobile communications network services under the Sprint Nextel name throughout its designated territory in Texas, New Mexico, Oklahoma, Arizona, Colorado, Utah, Wisconsin, Minnesota, Missouri, Washington, Oregon, Arkansas, Kansas, Illinois and California. With this acquisition, Sprint has announced agreements to acquire more than 2.3 million Sprint PCS affiliate customers.

Under the terms of the agreement, Sprint Nextel will acquire all of Alamosa's outstanding common shares for $18.75 per share in an all-cash merger. The acquisition is subject to the approval of Alamosa shareholders and customary regulatory approvals, and is expected to be completed in the first quarter of 2006.

On Aug. 8, Alamosa filed a complaint against Sprint regarding certain exclusivity covenants Sprint had with Alamosa's subsidiary, AirGate. As part of the agreement, Sprint Nextel and AirGate will seek an immediate stay of litigation pending in the Delaware Court of Chancery and the dispute will be resolved once the acquisition is complete.

For more information, visit: www.sprint.com