2004-06-01 17:46:06

US Unwired Inc. Completes $75 Million Debt for Equity Exchange Program

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High-Tech Writers / Business Editors LAKE CHARLES, La.--(BUSINESS WIRE)--UNWR-- US Unwired Inc. (OTCBB:UNWR) today announced that it has entered into exchange agreements that will complete a previously announced program to retire $75 million face amount of 13 3/8% senior subordinated discount notes due 2009 through a series of debt for equity exchanges effected pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended. As of March 31, 2004, the bonds retired by the program had an accreted value of approximately $70 million. The most recent round of exchange agreements will retire $33.4 million face amount of debt. A substantial majority of these exchanges have been consummated and the remainder are expected to close by the end of the week. "Our debt for equity exchange program has been highly successful, resulting in a significant principal reduction in our most expensive layer of debt. The interest savings alone will increase the company's cash flow by more than $10 million annually," said Robert Piper, US Unwired's Chief Executive Officer. After completing these transactions, US Unwired will have approximately 163.4 million shares of common stock outstanding and $325 million face amount of 13 3/8% senior subordinated discount notes due 2009, which had an accreted value of approximately $301.4 million as of March 31, 2004. About US Unwired US Unwired Inc., headquartered in Lake Charles, La., holds direct or indirect ownership interests in five PCS affiliates of Sprint: Louisiana Unwired, Texas Unwired, Georgia PCS, IWO Holdings and Gulf Coast Wireless. Through Louisiana Unwired, Texas Unwired, Georgia PCS and IWO Holdings, US Unwired is authorized to build, operate and manage wireless mobility communications network products and services under the Sprint brand name in 67 markets, currently serving over 650,000 PCS customers. US Unwired's PCS territory includes portions of Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Oklahoma, Tennessee, Texas, Massachusetts, New Hampshire, New York, Pennsylvania, and Vermont. For more information on US Unwired and its products and services, visit the company's web site at http://www.usunwired.com. US Unwired is traded on the OTC Bulletin Board under the symbol "UNWR". This press release may contain forward-looking statements. Forward-looking statements are statements about current and future business strategy, operations, capabilities, construction plan, construction schedule, financial projections, plans and objectives of management, expected actions of third parties and other matters. Forward-looking statements often include words like believes, belief, expects, plans, anticipates, intends, projects, estimates, may, might, would, or similar words. Forward-looking statements are made pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. Since these forward looking statements are based on factors that involve risks and uncertainties, actual results may differ materially from those expressed or implied by such forward looking statements. Such factors include: the competitiveness of and the financial impact of Sprint wireless pricing plans, products and services; the ability of Sprint to provide back office, customer care and other services; consumer purchasing patterns; potential fluctuations in quarterly results; an adequate supply of subscriber equipment; risks related to our ability to compete with larger, more established businesses; rapid technological and market change; risks related to future growth and expansion; the ability to successfully complete the build-out of the IWO Holdings' network; the potential need for additional capital; future losses; the significant level of indebtedness of the companies; and volatility of US Unwired's stock price. For a detailed discussion of these and other cautionary statements and factors that could cause actual results to differ from those contained in this press release, please refer to Items 1, 7 and 7A of US Unwired's Form 10-K for the period ended March 31, 2004 as filed with the Securities and Exchange Commission. US Unwired does not undertake to update or revise any forward-looking statement contained herein. KEYWORD: VERMONT TEXAS TENNESSEE PENNSYLVANIA OKLAHOMA NEW YORK NEW HAMPSHIRE MISSISSIPPI MASSACHUSETTS LOUISIANA GEORGIA FLORIDA ARKANSAS ALABAMA INDUSTRY KEYWORD: TELECOMMUNICATIONS SOURCE: US Unwired Inc. CONTACT INFORMATION: US Unwired, Lake Charles Ed Moise, 337-310-3500 ir@usunwired.com

06/02/04 2.87 2.95 2.87 2.95 +0.08 54443 +2.79%

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