-Expects Networks and Retail Operations Back up and Running for
Cricket Customers over Next Few Days-
-All Cricket Employees Safe and Accounted For-
SAN DIEGO--(BUSINESS WIRE)--Sept. 18, 2008--Leap Wireless
International, Inc. (NASDAQ:LEAP), a leading provider of innovative
and value-driven wireless communications services, today announced its
ongoing efforts to restore network and retail service to its Cricket
customers in areas hit by Hurricane Ike and related storms this past
weekend. Crews standing by responded immediately to the storms with
pre-positioned recovery assets as the Company secured additional
resources from multiple locations and deployed technical teams to
restore service in areas of the four states that sustained damage or
experienced continued loss of power - Texas, Ohio, Kentucky and
Pennsylvania. To help assist customers, Cricket mobile service centers
have been deployed to the hardest-hit Houston and Galveston areas to
charge mobile phones (for Cricket customers and non-customers alike),
as well as to perform account activations and provide other key
aspects of customer support for those who cannot travel to one of the
Company's open stores. In addition, the Company is providing free or
reduced rate roaming, extended payment periods, and other services
available to Cricket customers who had to leave their homes because of
the storms. Although this event was not anticipated, the Company
expects to demonstrate continuing successful progress for both the
quarter and the remainder of the year.
"Cricket teams in all four states, with the help of Cricket
employees from across the nation, are working around the clock to
restore full network service and regular retail operations as soon as
possible," said Doug Hutcheson, President and CEO. "Our thoughts and
prayers are with our customers who suffered losses in these storms and
we are proud of the dedicated efforts of our Cricket employees,
including many whose personal lives have been affected by the storms.
Our employees have worked and continue to work with little rest to
restore service and open stores in the areas affected by Hurricane
Ike. We would like to thank our committed Cricket team for their
extraordinary efforts over the past week."
In Texas, Cricket teams spent much of the prior week preparing for
Hurricane Ike's arrival by protecting retail operations and securing
network equipment which limited virtually all significant damage to
the Company's facilities and network. In addition, the Company
pre-positioned over 130 back-up generators ahead of the storm and
continues to increase the number of generators and mobile service
centers it has deployed to support customers impacted by the
hurricane.
At the peak of the storm, a majority of the Company's sites in the
affected areas of Texas were off-line due to continued commercial
power failure, and network teams have worked diligently to get a
significant number of these sites back in service. The Company,
however, expects that many sites and retail locations will remain out
of service until commercial power is restored in the coming days. In
the areas of Texas most impacted by the storms, approximately half of
the Company's retail operations are currently open at reduced hours to
accommodate a mandatory curfew. Cricket employees from closed store
locations, many of them storm victims themselves, have been
temporarily reassigned to open retail locations to handle
larger-than-normal customer volumes. Other Cricket employees who are
unable to work because of closed stores have formed a "chain-saw
brigade" to help their friends and neighbors cut through the debris
that has littered the Houston-Beaumont area.
Severe storms also knocked-out power to markets in Ohio, Kentucky
and Pennsylvania over the weekend, resulting in network outages and
store closures for our customers. In Ohio, network teams have restored
service to nearly half of the affected sites. The situation in
Kentucky and Pennsylvania was less severe, but significant, with a
substantial number of cell sites now back in service and retail
operations expected to return to normal service by the end of the
week.
"The storm came in the midst of a period during which the Company
has made solid progress, particularly on our new initiatives, giving
us confidence that the company will successfully navigate through this
event," continued Hutcheson. "The solid progress of our new market
launches continues, we expect continuing success of our mobile
broadband product introduction as we roll out service across Cricket
markets, and we recently launched a new flat-rate unlimited mobile
video service which has shown good initial momentum. In addition, work
continues as expected in enhancing the footprint in our existing
markets. All in all, we are pleased with the Company's progress and we
remain positive about the prospects of the business even as we deal
with the short-term disruptions that we and our customers have
experienced over the past week."
About Leap
Leap provides innovative, high-value wireless services to a
fast-growing, young and ethnically diverse customer base. With the
value of unlimited wireless services as the foundation of its
business, Leap pioneered its Cricket(R) service. The Company and its
joint ventures operate in 29 states and hold licenses in 35 of the top
50 U.S. markets. Through its affordable, flat-rate service plans,
Cricket offers customers a choice of unlimited voice, text, data and
mobile Web services. Headquartered in San Diego, Calif., Leap is
traded on the NASDAQ Global Select Market under the ticker symbol
"LEAP." For more information, please visit www.leapwireless.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
Such statements, including discussions regarding the status and
progress of our business, reflect management's current expectations
based on currently available operating, financial and competitive
information, but are subject to risks, uncertainties and assumptions
that could cause actual results to differ materially from those
anticipated in or implied by the forward-looking statements. Risks,
uncertainties and assumptions that could affect our forward-looking
statements are detailed in the section entitled "Risk Factors"
included in our periodic reports filed with the SEC, including our
Quarterly Report on Form 10-Q for the quarter ended June 30, 2008 and
our Quarterly Report on Form 10-Q for the quarter ended March 31,
2008.
All forward-looking statements included in this news release
should be considered in the context of these risks. We undertake no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. Investors and prospective investors are cautioned not to
place undue reliance on our forward-looking statements.
CONTACT: Leap Wireless International, Inc.
Greg Lund, Media Relations, 858-882-9105
glund@leapwireless.com
or
Amy Wakeham, Investor Relations, 858-882-6084
awakeham@leapwireless.com
SOURCE: Leap Wireless International, Inc.