Sprint Nextel Granted Stay in Ongoing Dispute with iPCS

Nextel (iDEN) Network Will Continue to Operate ’Business as Usual’ Throughout iPCS Wireless Markets in Five Midwestern States

RESTON, Va. — 10/16/2006 - The Illinois Court of Appeals granted a stay on Oct. 13, 2006, in the ongoing case between Sprint Nextel (NYSE: S) and iPCS. Sprint Nextel fully expects to continue operating its Nextel (iDEN) Network throughout iPCS territories for the foreseeable future. The territories include secondary markets in Illinois, Iowa, Michigan, Nebraska and a portion of Indiana. In addition, Sprint Nextel continues to move forward its appeal in the case, and a decision can be expected within seven to nine months, barring any delays.

The Cook County Illinois Circuit Court ruled on Aug. 14, 2006, that Sprint’s merger with Nextel violated Sprint’s agreement with the iPCS Inc. affiliate, iPCS Wireless. At that time, Sprint Nextel announced that it would vigorously appeal the decision by the Illinois court and the Nextel Network would continue to operate as usual. The decision in the iPCS case is directly contrary to a decision in a Delaware court related to iPCS Wireless’ sister companies, Horizon and Bright. In the Delaware case, which was decided Aug. 4, 2006, Horizon and Bright conceded that operation of the Nextel Network in their territories did not violate the parties’ agreements.

About Sprint Nextel
Sprint Nextel offers a comprehensive range of communications services bringing mobility to consumer, business and government customers. Sprint Nextel is widely recognized for developing, engineering and deploying innovative technologies, including two robust wireless networks offering industry leading mobile data services; instant national and international walkie-talkie capabilities; and an award-winning and global Tier 1 Internet backbone. For more information, visit www.sprint.com.

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