Sprint Nextel to Acquire Wireless Affiliate IWO Holdings, Inc.

Sprint Nextel Corporation (www.sprint.com) and IWO Holdings, Inc. (www.iwo.com) announced an agreement for Sprint Nextel to acquire IWO Holdings for approximately $427 million, including the assumption of approximately $208 million of net debt.

This transaction value represents 10.8x Earnings Before Interest, Taxes, Depreciation and Amortization adjusted for the impact of special items (Adjusted EBITDA) for the 12 months ending June 30, 2005 and 8.5x 2006E Adjusted EBITDA.

Under the terms of the agreement, Sprint Nextel will acquire all of IWO Holdings’ outstanding common shares for $42.50 per share in an all-cash merger.

IWO Holdings, based in Albany, N.Y., provides Sprint PCS services in upstate New York, New Hampshire, Vermont and portions of Massachusetts and Pennsylvania, serving more than 237,000 direct wireless subscribers. It employs about 230 people and had 2004 revenues of approximately $187 million.

IWO Holdings, Inc. through its Independent Wireless One Corporation subsidiary is a PCS affiliate of Sprint with exclusive rights to provide digital wireless mobile communication services throughout its affiliated markets under the Sprint PCS brand name.